Asian stock markets have opened the day on a firm note following some temporary relief as far as the European debt crisis is concerned. Stock markets in Hong Kong (up 1.9%), China (up 1.1%), Japan (up 0.9%) and Singapore (up 0.7%) are leading the gains. The Indian stock market have opened the day on a strong note. Stocks in the metals and IT space are leading the gains.
is trading higher by 521 points (3%) and the NSE-Nifty
is up by around 155 points (3%). BSE Midcap and BSE Small cap stocks are trading in the green, with the BSE Mid Cap and BSE Small Cap indices up by 1.2% and 0.8% respectively. The rupee is trading at 48.87 to the US dollar.
Banking Stocks have opened the day on a firm note with State Bank of India (SBI) and Bank of Baroda in the green. India's largest PSU bank, SBI will be the biggest beneficiary of the recapitalisation program for banks by the government. SBI will be eligible to get Rs 80 bn in the current financial year. The amount will be given to SBI through various forms including preferential shares. This will help SBI to increase the capital base and it will also be able to plan its follow-on public offer (FPO). The FPO is most likely to hit markets in the next fiscal year. This effort by the government to capitalise PSU banks is to adhere to the 9% Tier-I capital under Basel-III norms. These norms are supposed to be implemented between 2013 and 2019.
Power stocks have opened the day on a firm note with Power Grid Corporation of India Ltd (PGCIL) and National Thermal Power corporation (NTPC) leading the gains. As per a top company official, state-run PGCIL is aiming to achieve 30-40% growth in the telecom business in the current financial year 2011-12. During FY11, the telecom business had contributed about Rs 1.9 bn, which was 2% of the company's total revenue. PGCIL had ventured into the telecom business a few years ago. It has a telecom network of about 21,000 km optic fibre cable providing connectivity to all the metros, major cities and towns, apart from some presence in remote areas. Of over one lakh towers that the company owns, it has so far leased 800 towers and has floated tenders for another 30,000.