Barring Japan (down 0.5%), the major Asian equity markets have opened the day on a positive note with markets in Hong Kong (up 1.7%) and Taiwan (up 1.4%) leading the gains. The Indian share markets have opened the day on a positive note. The sectoral indices have opened mixed with the stocks in the FMCG and healthcare space leading the gains. However, stocks in capital goods and software segment were leading the losses.
Energy stocks have opened the day on a mixed note with Oil and Natural Gas Corporation Ltd (ONGC) and Essar Oil Ltd leading the losses. However, Gujarat State Petronet Ltd (GSPL) and MRPL were leading the gains. As per a leading financial daily, the subsidy on domestic LPG has been fixed at Rs 568 per cylinder to be borne equally by the government and national oil companies (NOCs), thus setting the stage for deregulating the pricing of domestic cooking gas. The proposed subsidy is higher than current under-recovery of Rs 416.35 per cylinder. It has also been decided to keep the consumer price unchanged during FY15, after which the deliverable price could vary with the change in international price. The position of actual subsidy requirement would be reviewed in March 2015. As per the petroleum minister Dharmendra Pradhan, any surplus to the oil marketing companies would be kept in a pool account and would be set off against higher international prices in future.
Mining stocks have opened mixed with Coal India Ltd and NMDC Ltd leading the gains. However, MMTC Ltd and Gujarat NRE Coke Ltd were leading the losses. Coal India Ltd has announced results for the quarter ended September 2014. The company has reported a muted growth of 1.7% YoY in the revenues for the quarter. The coal production for the quarter increased 5% YoY. The consolidated net profit for the quarter declined by 28% YoY. The bottomline registered a decline due to flattish sales growth and around 8% YoY growth in the expenses, most of which were on employee benefits.