The major Asian stock markets have opened the day on mixed note with stock markets in China (up 1.4%) and Hong Kong (up 0.3%) leading the gains. However, stock markets in Malaysia (down 0.5%) and Indonesia (down 0.5%) were facing selling pressure. The Indian stock markets have opened the day on a flat note. Barring software, all sectoral indices have opened in the green with FMCG and healthcare segment leading the gains.
Energy stocks have opened mixed with Castrol India Ltd and MRPL Ltd leading the gains. However, Bharat Petroleum Corporation Ltd (BPCL) and Essar Oil Ltd were facing selling pressure. As per a leading financial daily, Oil & Natural Gas Corporation Ltd (ONGC) is planning to develop 45 drilling wells at a block in Krishna-Godavari basin at an estimated cost of Rs over Rs 160 bn. The company has approached the Ministry of Environment and Forests to seek clearance for preparing terms of references. ONGC is likely to begin production in 2019, with a peak output of 4.5 million tonnes (MT) per annum, which is 20 % higher than the previous estimates.
Auto stocks have opened mixed with Eicher Motors Ltd and Escorts Ltd leading the gains. However, Mahindra & Mahindra Ltd (M&M) and Maharashtra Scooters Ltd were facing selling pressure. As per a leading financial daily, after facing issues with institutional investors over its Gujarat plant transfer to parent Suzuki, car maker Maruti Suzuki India Ltd has deferred seeking shareholders' permission for Gujarat plant. It is now is planning to seek permission of minority shareholders only after a proposed relaxation comes into effect in the Companies Act. Earlier, the company had planned to seek shareholders' approval for the transaction in November month. However, in the meanwhile, the Cabinet cleared a slew of amendments regarding new Companies Act. As such, the management believes it does not make sense to go for the vote until there is more clarity about the bill. It will wait for the changes to come into effect after Parliament's nod.