Asian stock markets have opened the day on a negative note with nearly all major markets trading in the red except for Japan. Stock markets in Indonesia (down 1.1%), Hong Kong (down 1%) and Singapore (down 0.9%) are the major losers. Stock markets in Japan (up 0.2%), however, have opened the day on a positive note. The Indian stock market have opened the day on a negative note with stocks in the metals and auto space leading the losses.
is down by around 50 points (0.3%), while the NSE-Nifty
is down by around 24 points (0.5%). Mid cap and small cap stocks are trading in the positive zone however, with the BSE Mid Cap and the BSE Small Cap indices up by about 0.1% and 0.2% respectively. The rupee is trading at 48.87 to the US dollar.
Energy stocks have opened the day on a negative note with Essar Oil and Cairn India leading the pack of losers. However, state owned firms, Hindustan Petroleum Corp Ltd (HPCL) and Bharat Petroleum Corp Ltd (BPCL) are witnessing buying interest. Recent studies conducted by Reliance Industries (RIL) have shown that the decline in output of Dhirubhai-1 and Dhirubhai-3 fields in the Krishna Godavari basin could be irreversible. These fields are a part of the D6 block. The output from these two fields is down by approximately 40% from its peak of 60 mmscmd (million metric standard cubic meter per day) in 2009 end. This will mean that industries buying gas from the D6 basin will now have to import gas, which is more expensive. Without considering the taxes and levies, the cost of imported gas is twice as expensive as the gas available from its D6 gas basin.
Power stocks have opened the day on a positive note with National Thermal Power Corp (NTPC) and Adani Power leading the gains. Power Grid Corporation is planning to form a joint venture with a few states for setting up intra state transmission networks. The management has stated that as the power distribution and generation capacity has increased significantly in past few years, it is important to have intra-state grid connectivity. For the same reason the company is in talks with a few states. It further stated that many states have taken initiatives in increasing the power capacity and now there is a growing need for better power transmission. The states of Orissa, Sikkim and Assam among others are being considered by the company for this joint venture. In the past, the company has adopted similar joint venture model on public private partnership (PPP) basis with eight companies for intra state connectivity.