The day begins on a subdued note with US government going into a shutdown following the failure of the political parties to reach a decision with regards to the budget. The Asian stock markets have opened the day on a mixed note. On one hand, markets in Hong Kong (down by 1.5%) and Malaysia (down by 0.1%) are seeing losses. On the other hand, stock markets in Singapore (up 0.7%) and China (up 0.7%) are witnessing gains. The Indian share market indices have opened the day in the red. Stocks in the metal and FMCG space are leading the losses. However, stocks in the banking and auto sectors are trading firm.
The Sensex today is down by around 45 points (0.2%), while the NSE-Nifty is down by around 14 points (0.3%). Mid cap stocks are also trading in the red with the BSE Mid Cap index down by 0.1%. However, small caps stocks are seeing buying interest with the BSE Small Cap index trading up by 0.1%. The rupee is trading at Rs 62.42 to the US dollar.
Energy stocks have opened the day on a negative note with Gujarat Gas, Indian Oil Corporation (IOC) and Oil and Natural Gas Corporation (ONGC) leading the pack of losers. The oil marketing companies have announced that they would be slashing the rates of petrol but hiking the prices of diesel. As per Economic Times, the companies have stated that they would cut the petrol rates by up to Rs 3.66 per liter. This is the first time that petrol prices have been reduced since May of this year. The price cut follows the correction of international petrol prices as well as the appreciation in the Indian Rupee seen in the recent times. As per IOC, these two factors have collectively helped in reducing the domestic prices of petrol in the country. However the prices of diesel would be raised by Rs 0.56 per liter. The oil marketing companies have stated that despite the hike they are still seeing a loss of almost Rs 1.52 per liter on diesel. Both the petrol price cut as well as the hike in diesel prices are effective today.
Telecom stocks have opened the day on a mixed note with Idea Cellular witnessing gains. However stocks of Bharti Airtel and Reliance Communications are seeing selling pressure. The telecom operators can finally heave a sigh of relief. The telecom department (DoT) has approved TRAI's (Telecom Regulatory Authority of India) proposal to slash the floor rates in the upcoming spectrum auctions. TRAI has proposed that the floor price be slashed by 37% for the 2G spectrum auction. It must be recalled that most of the telecom operators had refrained from participating in the last two auctions. The reason was the high reserve price. Therefore, this approval would definitely provide them with some relief. DoT has also stated that it does not agree with TRAI's proposal to not hold any auction in the 800MHz band. However the final decision on this regard is still pending. The DoT also has to take a final decision with regards to the slashing of rates for the spectrum in the 1,800 MHz band.