Major Asian stock markets have opened the day on a mixed note with key indices in Japan (up 1.4%) and Hong Kong (up 0.4%) leading the gainers. However, the stock markets in China (down 0.1%) and South Korea (down 0.2%) have opened on a weak note. The Indian share market indices have opened the day on a firm note. Barring FMCG and software, all sectoral indices have opened in the green led by stocks in the realty and auto space.
The Sensex today is up by around 22 points (0.1%), while the NSE-Nifty is up by around 7 points (0.1%). Mid and small cap stocks have also opened in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.3% each. The rupee is trading at Rs 54.79 to the US dollar.
Power stocks have opened the day on a mixed note with Indiabulls Power Ltd and Torrent Power Ltd leading the gains. However, Gujarat Industries Power Company Ltd and Neyveli Lignite witnessed selling pressure. As per a leading financial daily, Tata Power Ltd will have to pay a cross subsidy surcharge worth Rs 1 bn to Reliance Infrastructure Ltd (RInfra). RInfra will get this amount as a reimbursement on account of migration of its high end consumers to Tata Power who still use the former's distribution network in some areas. As per the RInfra's management, Maharashtra Electricity Regulatory Commission (MERC) in Oct 2009 had allowed RInfra consumers in suburbs to take supply from Tata Power by using RInfra network. However, RInfra claims that Tata Power later started dissuading small consumers and selectively cherry picked high-end consumers. MERC recognized that this is against a healthy competitive environment and has adversely impacted the interest of small consumers. MERC hence ordered an imposition of cross subsidy surcharge. In reaction, Tata Power had filed a petition with Appellate Tribunal for Electricity (ATE) which has been dismissed. As per Tata Power's management, the company is analyzing the judgment and will take necessary measures in due course of time. As per industry sources, it may challenge that ATE order in higher courts.
Auto stocks have opened the mainly in green with Tata Motors Ltd and Tube Investments Ltd leading the gains. As per a leading financial daily, Tata Motors Ltd is likely to launch 800 cc Tata Nano in 2013. Tata Nano, which is the world's cheapest car, is getting a third makeover post its launch in 2009. Apart from 800cc engine, the company is also considering diesel option. The decision to launch a fresh version has been taken to counter the impact of slack sales that touched a low point in November, when the company managed to sell barely 3,500 cars against a target of 10,000. The revised model of Nano is likely to be priced at Rs 2.5 lacs for the base petrol version.