Asian stock markets have opened the day on a weak note with stock markets in Hong Kong (down 1%), Indonesia (down 0.5%) and South Korea (down 0.5%) leading the losses. The Indian stock market have also opened the day on a weak note. Stocks in the realty, power and banking space are leading the losses. However, healthcare stocks are trading firm.
The BSE-Sensex is trading lower by 30 points (0.2%), while the NSE-Nifty is down by around 12 points (0.2%). Mid and small cap stocks are also trading in the red as well, with the BSE Mid cap and BSE Small cap indices down by 0.8% and 0.3% respectively. The rupee is trading at 50.43 to the US dollar.
Auto stocks have opened the day on a weak note with Tata Motors and Mahindra & Mahindra leading the losses. India's largest car manufacturer Maruti Suzuki has hiked the price s of its diesel cars by as much as Rs 10,000. The company cited rising input costs and an appreciating yen as the main reasons for the increase. Due to about Rs 30 difference in petrol and diesel prices, there has been a significant increase in demand for diesel cars in recent months. Maruti's new Swift model has a booking of at least 100,000 units, with more than 85% being for diesel variants. The company has hiked the price of the Ritz diesel model by Rs 2,000, whereas other models have witnessed a rise of Rs 10,000 in prices.
Pharma stocks have opened the day on a mixed note with Cipla leading with significant gains. However, Dishman Pharma and Aurobindo Pharma are trading in the red. India's second largest drug manufacturer by domestic sales, Cipla, has declared its results for the second quarter of financial year 2011-12 (2QFY12). The company has reported a 7.8% YoY growth in sales during the quarter ended September 2011. Domestic sales were higher by 12% YoY. Exports to Africa were higher by 41% YoY. However, sales in the Middle East were affected due to adverse market conditions. The company reported a higher growth of 17.5% YoY in net profits on account of cost savings and a rise in interest income.