Asian stock markets have opened the day on a firm note. Stock markets in Hong Kong (up 3.6%), South Korea (up 3.1%) and Indonesia are leading the pack of gainers. However, markets in China (down 0.2%) are facing selling pressure. The Indian stock market have opened the day on a firm note. Banking, IT and metal stocks are leading the gains.
The BSE-Sensex is trading higher by around 478 points (3%) while the NSE-Nifty is up by around 147 points (3.1%). Mid cap and Small cap stocks have opened on a positive note as well with BSE Mid Cap and BSE Small Cap
indices up by 2.3% and 2.2% respectively. The rupee is trading at 49.02 to the US dollar.
Capital goods stocks have opened the day on a firm note with Suzlon Energy and Jain Irrigation trading in the green. State-owned power equipment manufacturer, Bharat Heavy Electricals Ltd (BHEL) said that it has bagged an order of Rs 38 bn from Dainik Bhaskar Power Ltd (DBPL). The order pertains to the setting up of 1,320 MW thermal power plant which will be located in Madhya Pradesh. DBPL is an independent power producer in Madhya Pradesh and the deal is valued at Rs 37.8 bn. BHEL is already executing one contract for DBPL which involves supply and commissioning of a 2x600 MW BTG (boiler, turbine and generator) package for a power project in Chhattisgarh. The state-owned firm has the capability to deliver 15,000 MW worth power equipment every year and the company is in the process of increasing its capacity to 20,000 MW per year.
Auto stocks have opened the day on a firm note with Tata Motors and Maruti Suzuki leading the gains. India's leading car manufacturer, Maruti Suzuki had reported a sharp decline of 24% in production during the July-September quarter. In fact, this was the steepest decline in the company's 29-year history. The main reason for this was the disruption in production caused by labour unrest at Maruti's Manesar plant. However, the company is now gearing up to register record sales during the festive month of October. The company has set a production target at 30-40% higher. Due to the lower production in the previous few months, the company's backlog of bookings has increased substantially. Maruti is planning simultaneous production at its Manesar and Gurgaon plants with the aim of not only meeting the backlog of bookings but also to meet the higher festive demand.