Asian stock markets have opened the day on a mixed note. Stock markets in China (up 0.1%) are in the green while Indonesia (down 0.4%), Japan (down 0.4%) and Singapore (down 0.1%) are in the red. The Indian stock markets have opened the day on a weak note as well. Stocks in the banking and metals
space are leading the losses while power and healthcare stocks are in the green.
The BSE-Sensex is trading lower by 36 points (0.2%) and the NSE-Nifty is down by around 11 points (0.2%). BSE Midcap and BSE Small cap stocks have opened on a firm note, with the BSE Mid Cap and BSE Small Cap cap indices up by 0.2% and 0.1% respectively. The rupee is trading at 52.78 to the US dollar.
Auto stocks have opened the day on a weak note with Tata Motors and Maruti Suzuki
trading in the red. After some problems beings found in the starter motor of Tata Nano, Tata Motors has asked around 140,000 Nano owners to bring back their car for change. This will be the biggest ever replacement exercise in the history of Indian automobile industry Needless to say, Tata Motors will bear the cost of replacement the starter motor. Tata Motors is of the opinion that this exercise is not a recall. They are of the opinion that it is just a replacement of new and better motor with the old one. This replacement exercise will cost the company nearly Rs 1.1 bn. The company has started this from the end of October, 2011.
Energy stocks have opened the day on a firm note with Coal India and Reliance Industries Limited (RIL) in the green. Oil Ministry's technical arm and Oil and Natural Gas Corporation Ltd. (ONGC) have finally granted a go-ahead to Cairn India
for starting the production at Bhagyam oilfield. This oil field is the 2nd largest oil find in the oil rich Rajasthan block. Cairn now a part of Vedanta group will begin oil production. It is expected that it will produce 20,000 to 25,000 barrels of oil per day. Within a month time, it should reach to the peak production of 40,000 barrels per day. ONGC holds 30% stake in this Rajasthan block.