Barring Indonesia (down 0.8%) and Malaysia (down 0.2%), the major Asian stock markets have opened the day in the green with stock markets in Hong Kong (up 0.7%) and Taiwan (up 0.8%) leading the gains. The Indian share market indices have also opened the day on a firm note. Barring software, all sectoral indices have opened in the green with the stocks in the capital goods and realty space leading the gains.
The Sensex today is up by around 90 points (0.4%), while the NSE-Nifty is up by around 21 points (0.4%). Mid and small cap stocks have also opened in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.7% each. The rupee is currently trading at Rs 61.92 to the US dollar.
Energy stocks have opened the day mainly in the green with Gujarat Gas Corporation Ltd and Gujarat State Petronet Ltd (GSPL) leading the gains. As per a leading financial daily, the Cabinet Committee on Economic Affairs (CCEA) has approved giving Reliance Industries Ltd. (RIL) a higher price for natural gas from April next year. However, the price hike will be subject to provision of furnishing around US$135 m bank guarantee every quarter. Initially, the Petroleum Ministry had proposed to deny the new gas prices to RIL until the company either made up for the shortfall in output during the past three fiscals, or it is proved that the company was not responsible for production falling below targets. Infact because of these issues, the notification of the new gas pricing formula that would be applicable to all producers in the public and private sectors for all forms of gas produced was held up. As per the recent proposal, the bank guarantee will be encashed if it is proved that RIL hoarded gas or purposely suppressed production at the Dhirubhai-1 and 3 (D1&D3) main gas fields in its eastern offshore KG-D6 block.
Engineering stocks have opened mainly in the green with Emco Ltd and Welspun Corporation leading the pack of gainers. As per a leading financial daily, Larsen &Toubro Ltd (L&T) has sought approval from the Foreign Investment Promotion Board (FIPB) for a foreign direct investment (FDI) proposal which is likely to infuse as much as Rs 20 bn into its infrastructure business. As per the daily, the company is engaged in discussions with a large global investor for the proposed acquisition of a stake in L&T Infrastructure Development Projects (L&T IDPL). The initial infusion by the unnamed global investor is expected to be around Rs 10 bn. This is likely to be followed by a second tranche of Rs 10 bn or such higher amount as agreed between investor and the company. The second round will be a year after the initial investment. Also, it will be subject to further approvals as and when needed.