Asian markets have opened the day on a weak note. Indonesia, Singapore and Hong Kong are the biggest losers. However, Chinese markets have opened the day on a positive note. Indian markets have followed the cues of their Asian counterparts and have opened in the red as well. Autos and realty stocks are the biggest losers.
The BSE-Sensex is trading lower by around 101 points (0.5%), while the NSE-Nifty is down by about 5 points (0.1%). Mid and small cap stocks are trading in the negative as well, with the BSE-Midcap and BSE-Smallcap indices down by 0.9% and 1.3% respectively. The rupee is trading at 45.29 to the US dollar.
Supported by higher oil prices, the energy stocks have opened the day in the green. Currently, BPCL, Reliance Industries and ONGC are leading the pack. However, HPCL is currently witnessing selling pressure. ONGC, through its overseas arm, ONGC Videsh Ltd (OVL), has bid for Exxon's 25% stake in an oil block in Angola. The block is expected to have a daily production of about 150,000 barrels of crude oil. The block is being operated by British Petroleum that has a 27% stake in the same. If successful, OVL will be entitled to its stake in the oil production, which is expected to start from 2012. ONGC had earlier bid for a 45% stake in Akpo in Angola, but had lost out as the Indian government had rejected its proposal to pursue the opportunity.
Like the broader markets, power stocks too have opened the day on a weak note. Tata Power and Reliance Power are the biggest losers in the sector. Despite the investments made towards the power sector, India will most likely miss its power capacity addition target for 2012. The reason behind it is that some of the hydro-electric power projects were impacted by weather and geographic conditions. As per the country's power secretary, this would affect the peak hour shortages which currently stand at 12% (as at end of March 2010). The government had earlier targeted an addition of 78.7 GW of power generation capacity in the current 5 year plan. However, this target had been later revised down to 62.37GW. The actual addition would be much lower. The total addition by the end of October was only a meager 28.57 GW.