Asian stock markets have opened the day on a firm note. Stock markets in Indonesia (up 1.7%), Honk Kong (up 1.7%) and China (up 0.6%) are leading the gains. The Indian stock markets have opened the day on a firm note. Stocks in the banking and auto space are leading the gains.
The BSE-Sensex is trading up by 133 points (0.6%) and the NSE-Nifty is up by around 40 points (0.8%). Mid and small cap stocks are trading in the green as well, with the BSE Mid Cap and BSE Small Cap indices up by 0.6% and 0.3% respectively. The rupee is trading at 49.24 to the US dollar.
Power stocks have opened the day on a firm note with Coal India and Power Finance Corporation leading the gains. The Coal Minister, Mr Sriprakash Jaiswal, has pointed out that corruption, inefficiency and low productivity have eaten up at least a quarter of the output of state monopoly Coal India. This in turn has created a severe coal supply glut that has affected power producers. However, the minister assured that coal output was set to rise since new mines have started getting environmental clearances. Certain emergency measures are also being taken to supply coal to fuel-starved power plants to ensure that there are no blackouts during the Diwali festival. While maintaining that government wanted to make sure that shareholders of Coal India are rewarded well, Mr Jaiswal also admitted his willingness to contribute Rs 250 bn from the company's kitty to help fund crucial government expenditure.
Auto Stocks have opened the day on a firm note with Tata Motors and Maruti in the green. Mahindra & Mahindra's (M&M) latest offering (XUV500) has received an excellent initial response from the market. The new model is set to be launched shortly and has already received 9,000 bookings in ten days. However, the company says that it is still too early to celebrate as the customers are only reacting to what they have seen in the test drive. M&M would be more comfortable after 6 months of sustained demand and good feedback for the vehicle s looks and reliability. M&M plans to produce 2,000 units per month this quarter and will then scale it up to 3,000 and the take it to 5,000 units per month by June 2012. The car is priced between Rs 1.1 m to Rs 1.3 m.