Indian stock markets open weak

Tue, 4 Oct 09:30 am

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Asian stock markets have opened yet another day on a weak note. Stock markets in South Korea (down 4.9%), Japan (down 1.9%), Singapore (down 1.8%) and Hong Kong (down 1.5%) are leading the losses. The Indian stock markets have opened the day on a weak note as well. Banking, metal and realty stocks are leading the losses. However, stocks in the FMCG and consumer durablesspace are trading firm.

The BSE-Sensex is trading lower by around 40 points (0.3%), while the NSE-Nifty is down by around 15 points (0.3%). However, mid cap and small cap stocks have opened on a flat note with the BSE Mid Cap and the BSE Small Cap indices up marginally by 0.1% and 0.01% respectively. The rupee is trading at 49.33 to the US dollar.

Power Stocks have opened the day on a mixed note with JSW Energy and National Thermal Power Corporation (NTPC) in the red. However, Tata Power and Reliance Power are trading in the green. As per a leading financial daily, Anil Dhirubhai Ambani Group's Reliance Power is expecting to earn about Rs 20 bn by trading carbon credits from its Tilaiya ultra-mega power plant (UMPP) during the first 10 years of the plant's operations. The company has said that it has received the approval for the carbon credits from the United Nations Framework Convention on Climate Change (UNFCCC). The 3,960 MW Tilaiya UMPP, which is proposed to be built in Jharkhand, is a pit-head-based project on super-critical technology. The plant is expected to generate 21.3 m carbon credits during the first 10 years of operations which could be traded under the Clean Development Mechanism regime and are valued at over Rs 20 bn. The plant will supply power to 18 bulk consumers in 10 states.

Auto Stocks have also opened the day on a mixed note with Maruti Suzuki and Hero Motocorp trading firm. However, Tata Motors is facing significant selling pressure. Hero Motocorp, the world's largest two-wheeler manufacturer in terms of volumes, has reported record sales of 549,625 units for the month of September, 2011. This is a 26.75% increase from the corresponding month of the previous financial year. This was also the third consecutive month when the company sold more than half a million units. The company expects the momentum to continue during the festive season of October and November. Bajaj Auto, which is India's second largest two-wheeler manufacturer, also reported strong growth in volume sales. During the month of September 2011, the company witnessed a rise of 18% year-on-year (YoY) to 371,000 units.