Most Asian stock markets have opened the day in the red with stock markets in Japan (down 0.5%), South Korea (down 0.4%) and Singapore (down 0.3%) leading the losses. The Indian stock markets have also opened the day on a weak note. Stocks in the consumer durables and power space are leading the losses. However, stocks in the capital goods and fast moving consumer goods sectors are trading firm.
The BSE-Sensex is trading lower by 32 points (0.2%), while the NSE-Nifty is down by around 13 points (0.3%). However, both the BSE Mid Cap and BSE Small Cap indices are trading flat. The rupee is trading at 53.67 to the US dollar.
Textile stocks have opened the day on a mixed note with Arvind Ltd and Alok Industries trading firm. However, Raymond and Grasim Industries are trading weak. Textile firm Arvind Ltd has announced a joint venture (JV) with Germany headquartered PD Fibre Glass Company in a bid to venture into glass fabrics in India. The JV firm, Arvind PD Glass Composites Pvt Ltd, will have equity participation by the two firms in the ratio of 51:49 respectively. It will cater to the requirements of energy, automotive and infrastructure sectors. According to a senior executive of the company, the new facility that is slated to come up at Santej (near Ahmedabad) with an investment of Rs 800 m will manufacture 30,000 tonnes of fabric after five years. The JV is expected to garner business worth Rs 2.5 bn in the first three years and to go up to Rs 5 bn by the fifth year. In a decade, Arvind aims to make its technical textiles business to about US$ 1 bn in size.
Power stocks have also opened the day on a weak note with National Power Thermal Corporation (NTPC), Adani Power and Tata Power trading in the red. NTPC has signed an agreement with Electricity Generation Company of Bangladesh (EGCB) for providing operation and maintenance services for the latter's 240 MW gas-based Siddhirganj power plant near Dhaka. As per NTPC's official statement, the services that it would offer to EGCB include operation and maintenance, recruitment and training, quality and environment management for a period of 6 years. The order is valued at about Rs 430 m. This is the largest single international order received by NTPC. The company has plans to expand its international footprint in the maintenance and operations space.