Asian stock markets have opened the day on a firm note. Stock markets in Hong Kong (up 2.9%), Indonesia (up 2.4%), South Korea (up 2.0%), Japan (up 1.9%), Singapore (up 1.9%) and China (up 0.7%) are in the green. The Indian stock market have opened the day on a firm note. Stocks in the Metals
and Banking space are leading the gains.
The BSE-Sensex is trading up by 150 points (1%) and the NSE-Nifty is up by around 50 points (1%). Mid and small cap stocks are trading in the green, with the BSE Mid Cap and BSE Small Cap indices up by 1% and 0.6% respectively. The rupee is trading at 48.88 to the US dollar.
Banking stocks have opened the day on a firm note with Bank of Baroda and State Bank of India (SBI) in the green. India's leading public sector lender, SBI is planning to raise Rs 50 bn through a rights issue of shares by December 2011. The aim of this initiative is to prop up the bank's Tier-I capital to above 8% for the financial year 2011-12. The move has come in response to the downgrade of SBI's standalone rating by Moody's Investors Service. The rating agency had cited concern over capital and rapid deterioration in asset quality. As on 30th June, 2011, SBI had Tier-I capital of 7.6%. Though the regulator mandates Tier-I capital higher than 6%, the Indian government insists public sector banks maintain minimum Tier-I capital of 8%.
Steel stocks have opened the day on a firm note with Tata Steel and JSW Steel in the green. India's largest steel maker, Tata Steel has planned to invest GBP 2 m in making a new facility to manufacture jacket foundation structures for wind turbines. This facility will be created at its Hartlepool tube plant in the UK. This move will help in increasing the company's presence in the renewable energy market. Tata steel said that the traction in the renewable sector will create a huge demand for jacket fabrications for wind tower structures. The facility is expected to be read by early 2012. These jackets are used for fixing the wind turbine to the seabed and are typically used in deep water for larger turbines. The new facility will create the structures and will then be prepared for welding into the finished product. It will further be sent to fabricators in the UK and mainland Europe.