The major Asian stock markets have opened the day in the green with stock markets in Japan (up 1.9%) and Malaysia (up 0.6%) leading the gains. The Indian equity markets indices have opened the day on a firm note . All sectoral indices have opened in the green with the stocks in the capital goods and banking space leading the gains. Some of the positive sentiment seems to be emanating from the election results in northern states.
The Sensex today is up by around 388 points (1.9%), while the NSE-Nifty is up by around 131 points (2.1%). Mid and small cap stocks have also opened in the green with the BSE Mid Cap and BSE Small Cap indices up by around 1.1% and 0.9% respectively. The rupee is currently trading at Rs 60.89 to the US dollar.
Auto stocks have opened the day mainly in the green with Maruti Suzuki Ltd and Hero Motocorp Ltd leading the gains. As per a leading financial daily, Tata Motors' subsidiary Jaguar Land Rover plans to open a new manufacturing facility in Brazil post a landmark agreement between the company and state authorities to build a plant in the state of Rio de Janeiro. The decision is likely to help company to increase its global manufacturing footprint and create additional capacity. The construction of the premium manufacturing facility will commence in mid-2014. The total investment is expected at around GBP 240 m by 2020. It is expected that the first vehicles will come off the assembly line in 2016, subject to the final approval of the plans from the Brazilian Federal Government under its Inovar-auto Programme. The new plant will have a capacity to build 24,000 vehicles per annum for the Brazilian market.
Mining stocks have opened the day mainly in the green with Ashapura Minechem Ltd and Gujarat NRE Coke Ltd leading the gains. As per a leading financial daily, Coal India Ltd (CIL) is examining as many as five proposals for acquisitions of mines in Indonesia. The company's overseas plans are likely to help at a time when the acute shortage of coal has hurt country's key sectors such as power and fertilizer. As of now, no timeline has been given as to when the proposals are likely to be finalized. Apart from overseas acquisitions, the government is also proposing to import coal to meet country's energy requirements. Meanwhile, CIL has already finalized bids for further drilling its twin mines in Mozambique. It has proposed a capital outlay of Rs 254 bn in the 12th Five Year Plan, along with an ad-hoc provision of Rs. 350 bn to acquire coal assets abroad and develop the acquired coal blocks in Mozambique. For FY14, the capital expenditure is estimated at around Rs 50 bn, along with ad-hoc provision of Rs. 40 bn to acquire coal assets abroad and develop coal blocks in Mozambique.