Tensions in Korea have caused the Asian markets to open the day in the red. China, Indonesia and Korea are the biggest losers. Indian markets have followed cues from their Asian counterparts and have opened in the red as well. Banks and realty stocks are the biggest losers.
The BSE-Sensex is trading lower by around 125 points (0.6%), while the NSE-Nifty is down by about 45 points (0.7%). Mid and small cap stocks are trading in the negative as well, with the BSE-Midcap and BSE-Smallcap indices down by 0.1% each. The rupee is trading at 45.64 to the US dollar.
Auto stocks have opened the day on a mixed note. While Hero Honda is trading in the green and leading the pack of gainers, others like Maruti Suzuki and Tata Motors are witnessing selling pressure. As per a leading business daily, Tata Motors is looking to enter the international market for double-trailer trucks. This product is expected to be commercially launched by the end of the current financial year. The reason for targeting the international market is the lack of demand for this particular type of product in the domestic market. The company is developing the engines for the same at its Jamshedpur plant. Tata Motors’ global sales had increased by 6% YoY in November to 79,959 units. At the same time, the sale of its commercial vehicles witnessed a 21% YoY growth to 40,244 units.
Power stocks have followed the broader trend and have opened the day in the red. GVK Power, Tata Power and NTPC are the biggest losers currently. Tata Power plans to add 60% of its installed power generation capacity by commissioning over 1,900 MW through different sources by 2011. The company currently has an installed generation capacity of 3,000 MW. A series of projects would be commissioned by the company next year. These would include 800 MW project in Mundra, 1,050 MW in Maithon, 120 MW in Jojobera, and 100 MW of wind power and 25 MW of solar power, both in Gujarat. The company has already completed nearly 65% of work in the first unit of 800 MW in Mundra. It is confident of commissioning the same by August 2011.