The major Asian stock markets have opened the day on mixed note with stock markets in Japan (up 0.8%) and China (up 0.7%), leading the gains. However, stock markets in Hong Kong (down 1.8%) and Malaysia (down 2.2%) were facing selling pressure. The Indian share markets have opened the day on a positive note. Sectoral indices have opened mixed with consumer durables and banking sector leading the gains, while realty and metal stocks were facing losses.
Automobile stocks have opened mainly in the green with TVS Motors and Maharashtra Scooters Ltd leading the gains. As per a leading financial daily, Hero Motocorp Ltd is planning to expand in Central and Latin America and set up manufacturing units in Brazil and Argentina, even as it expects an upcoming plant in Colombia to help widen its reach in the region. The management believes the factory in Colombia will be a good hub for supply to the other markets in Central and Latin America. The company plans to enter the Brazilian market along with the Rio Olympics in 2016. It has launched six of its best-selling bikes in the region as part of its target to clock 1.2 million unit sales from global business by 2020. In the month of July, the company formed a wholly-owned subsidiary in Colombia and commenced construction of a state of the art manufacturing plant in the country. The entire project is likely to cost around US$70 million in capital expenditure as well as working capital over a three year period.
Energy stocks have opened mixed with Essar Oil Ltd and Hindustan Petroleum Corporation Ltd (HPCL) leading the gains. However, Gujarat Gas Ltd and Gujarat State Petronet Ltd (GSPL) were leading the losses. As international oil prices continue to slump, a cut has been announced on diesel and petrol prices . Petrol and diesel prices have been cut by 91 paise per litre and 84 paise per litre respectively. Post the price cut, petrol and diesel will cost Rs 63.33 per litre and Rs 52.5 per litre respectively. However, prices will vary across states due to differential local sales tax or VAT rates. This is the seventh consecutive reduction in petrol prices since August and third in diesel in rates since October.