Asian stock markets continued their downward streak this week as well with stock markets in Taiwan (down 2.3%), Hong Kong (down 1.9%) and Indonesia (down 1.6%) leading the losses. The Indian stock market have also opened the day on a weak note. Stocks in the Oil and gas, metal and auto space are leading the losses.
The BSE-Sensex is trading lower by 142 points (0.9%), while the NSE-Nifty is down by around 43 points (0.9%). Mid cap and small cap stocks are also trading in the red, with the BSE Mid Cap and BSE Small Cap
indices down by 0.6% and 0.1% respectively. The rupee is trading at 51.51 to the US dollar.
Auto stocks have opened the day on a weak note with Tata Motors and Bajaj Auto leading the losses. India's leading passenger carmaker Maruti Suzuki is planning to introduce more models with the environment-friendly CNG (compressed natural gas) option. The company currently has five models in CNG options- Alto, WagonR, Estilo, Eeco and SX4. Maruti's Chairman Mr R C Bhargava has asserted that the automobile industry needs the government's support in order to make vehicles with eco-friendly fuel options a success. There is a requirement to make CNG available across the country and adequate CNG needs to be allocated for automotive use. Besides planning to introduce more models with CNG options, the carmaker is also working to offer hybrid and electric vehicles at affordable rates.
Pharma stocks have opened the day on a mixed note with Biocon, Ranbaxy Laboratories and Orchid Chemicals facing selling pressure. However, Dishman Pharma, Aurobindo Pharma and Indoco Remedies are trading in the green. Dr Reddy's laboratories (DRL) said that the workers from its Srikakulam manufacturing facility in Andhra Pradesh have called off a 3-month old strike. Nearly 400 contract workers were on strike demanding wage hikes and employment status as permanent workers. The deadlock between the management and the workers had remained for the past 3 months. The company was finally successful in negotiating with the contract workers and this was facilitated by the district administration officials. As a part of the understanding, the contract workers will be engaged as per the shift requirement. The Labour department of Andhra Pradesh confirmed that an understanding was reached between the workers and management. As a part of the settlement, nearly 180 contract workers will be employed as permanent workers.