Most Asian stock markets have opened the day on a weak note with stock markets in China (down 1.4%), Singapore (down 0.9%) and Taiwan (down 0.8%) leading the losses. The Indian stock market have opened the day on a flat note. Stocks in the consumer durables and IT space are trading firm. However, metal and oil and gas stocks are facing selling pressure.
The BSE-Sensex is trading marginally lower by 17 points (0.1%), while the NSE-Nifty is down by around 7 points (0.1%). Mid cap and small cap stocks are trading in the green, with the BSE Mid Cap
and BSE Small Cap
indices up by 0.1% each. The rupee is trading at 51.49 to the US dollar.
Food stocks have opened the day on a mixed note with Tata Global Beverages and Lakshmi Energy trading firm. However, Nestle and Ruchi Soya Industries are trading in the red. Nestle has undertaken a rebranding exercise for its milk and yoghurt products. The products will come under the new name 'Nestle a+'. The aim of this exercise was to lay emphasis on the stringent standards that the company follows in order to provide high quality products. However, the product prices will remain unchanged for both milk and yoghurt. The company is expecting robust growth in the dairy business which is becoming an important part of its overall business. The company also sells popular products like Maggi noodles, Nescafe and KitKat chocolates in India.
Investment & Finance stocks have also opened the day on a mixed note with Industrial Finance Corporation of India (IFCI) and Religare Enterprises leading the losses. However, Power Finance Corporation (PFC) and Reliance Capital are trading in the green. State-owned PFC managed to raise Rs 40 bn yesterday through a private placement of debt. The bond offering of PFC which was rated as AAA has varying maturities. Three, five and seven-year (taxable) bonds were issued at coupon rates of 9.63%, 9.64% and 9.70% respectively. The company was able to raise the amount within a few hours as institutional investors seized the offering. These investors hope to cash in once the Reserve Bank of India (RBI) lowers key interest rates, a move anticipated in the first half of next year.