Asian stock markets have opened the day on a firm note. Stock markets in Japan (up 0.5%), Hong Kong (up 0.4%) and Indonesia (up 0.2%) are in the green. The Indian stock market have opened the day on a positive note. Stocks in the FMCG (fast moving consumer goods) and power space are leading the gains while technology stocks are in the red.
The BSE-Sensex is trading up by 30 points (0.2%) and the NSE-Nifty is up by around 7 points (0.2%). Mid cap and small cap stocks have opened on a firm note, with the BSE Mid Cap and BSE Small Cap indices up by 0.5% and 0.4% respectively. The rupee is trading at 52.91 to the US dollar.
FMCG Stocks have opened the day on a firm note with Nestle India and GSK Healthcare in the green. Food and beverages major, Nestle India, is planning to invest nearly Rs 5 bn on a new plant of Maggie noodles and confectionery. The 8th plant is being planned in Gujarat. The company is also exploring Bihar for another plant as part of its aggressive business expansion policy. The company has planned to double its capacity with focus on northern and eastern parts of India. Most of Nestle's plants so far are in southern India. Nestle is looking for a 50 to 100 acres land near Ahmedabad area for its new plant. The company is in advanced stage of preparation and would finalize the plans by mid 2012. The manufacturing from the same plant will start by 2015.
Energy stocks have opened the day on a firm note with Coal India and Tata Power in the green. The government proposal on buyback in Coal India has not found buyers within the company's board. In order to meet the government's disinvestment target, government has asked Coal India to consider a buyback of Coal India's shares. However, the board did not see any benefits from the same. Currently, Coal India has Rs 49 bn of cash reserves which is further expected to grow in the current financial year (FY12). The Department of Disinvestment (DoD) has planned to propose this kind of buyback scheme to many government units that are cash rich. Currently, the DoD is discussing the same with different ministries.