Barring Singapore (up 0.3%), the major Asian stock markets have opened the day in the red with the markets in Japan (down 1.4%), and Korea (down 0.7%) leading the losses. The Indian share markets have opened the day on a positive note. Barring oil and gas and FMCG, all sectoral indices are trading in the green with stocks in the metal and consumer durables segment leading the gains.
Barring Coal India Ltd, mining stocks have opened mainly in the green with Sesa Sterlite Ltd and MOIL Ltd leading the pack of gainers. In a key development in the coal sector, the government has recently proposed an ordinance to allow e-auction of mines to private players while adding that state-run companies would be allocated mines directly. The process is likely to take three four months and the proceeds of auction would go to states where the respective mines are located. The decision follows deallocation of coal blocks by Supreme Court. However, full commercial mining is not allowed yet, something that has disappointed the key sectors related to coal mining such as power. The Finance Minister Mr. Arun Jaitley has stated that the ordinance would only feature an "enabling provision" to allow the same in future.
Barring Idea Cellular Ltd, telecom stocks have opened the day on a strong note with ADC India Communications Ltd and Himachal Futuristic Ltd leading the gains. The leading telecom operator Idea Cellular has reported results for the quarter ending September 2014 (2QFY15). The company has reported a marginal increase in the consolidated revenues on a quarter on quarter (QoQ) basis. It has thus reversed the last 2 years trend of sequential revenue decline during the seasonally weak quarter (ending September) due to contraction in voice minutes of use. The operating profit slipped 0.5 % QoQ and margin declined 20 basis points to 32.9 %. The net profit for the quarter grew 3.8% QoQ on account of low finance cost due to the reduced debt. The average revenue per minute (ARPM) grew by 1.8 % to 45.9 paise from 45.1 paise on sequential basis. While the voice rate realization was under pressure, the company witnessed 22.5% QoQ jump in mobile data revenue.