Barring the stock markets in China (down 0.3%), the major Asian stock markets have opened the day on a positive note with stock markets in South Korea (up 0.7%), Hong Kong (up 0.8%) and Singapore (up 0.5%) leading the gains in the region. The Indian share market indices have opened the day on a firm note. All sectoral indices are trading in green with stocks in the auto and realty space leading the pack of gainers.
The Sensex today is up by around 90 points (0.5%), while the NSE-Nifty is up by around 30 points (0.5%). Mid and small cap stocks are also trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.6% and 0.7% respectively. The rupee is trading at Rs 54.87 to the US dollar.
Telecom stocks have opened the day on a mixed note with Tata Teleservices Ltd and Reliance Communications Ltd leading the gains. However, Idea Cellular Ltd is witnessing selling pressure. As per a leading financial daily, the Supreme Court has lashed out at the Government for not putting all airwaves in the 2G band up for auction. As per the court, holding back even 0.1% of the airwaves is unacceptable and will be construed as a violation of the court orders. The auction was carried out earlier this month in which 390 MHz had been put up for sale out of the 473 MHz. The 473 MHz had been freed up after the court cancelled 122 licences issued by former telecom minister A Raja under controversial circumstances in early 2008. While the Court has expressed displeasure, it has not yet passed any final orders. The next hearing of the case is on November 26, 2012. As per the industry sources, the Government may have a tough time making its case to the court.
Energy stocks have opened the day on a mixed note with Gujarat State Petronet Ltd (GSPL) and Gas Authority of India Ltd (GAIL) leading the pack of gainers. However, Cairn India and Jindal Drill have opened in the red. As per a leading financial daily, Hindustan Petroleum Corporation ltd. (HPCL) has decided to put Rajasthan ahead of Maharashtra in its refinery commissioning dates. The company had originally planned to get in place a 9 million tonne (MT) facility in Ratnagiri (called the Maharashtra Refinery) by 2016 whose capacity would be doubled in due course of time. However, it now intends to fast track the more recently planned Rajasthan refinery where Oil and Natural Gas Corporation (ONGC) is its ally. The Ratnagiri project was first conceived to replace the existing decades-old Mumbai refinery. As per the sources, the plan has been changed since Ratnagiri project is likely to face delays due to a slew of environmental clearances required in a sensitive coastal location. However, since both projects have been planned with capacities of 9 MT, it should not impact HPCL's refining targets over the next four years.