Asian stock markets have opened the day on a negative note. Markets in Korea (down 1.3%), Japan (down 1.1%) and Taiwan (down 0.9%) are leading the losses in the region. The Indian stock markets have opened the day on a weak note as well. Stocks in the metal and capital goods sectors are the major losers.
The BSE-Sensex is down by around 127 points (0.7%), while the NSE-Nifty is down by around 41 points (0.8%). Mid and small cap stocks are trading in the negative zone as well, with the BSE Mid cap and BSE Small cap indices down by around 0.4% and 0.02% respectively. The rupee is trading at Rs 51.38 to the US dollar.
Software stocks have opened the day on a weak note with Tech Mahindra, Mphasis Ltd and Infosys Ltd leading the losses. Mahindra Satyam (previously known as Satyam Computer) issued a note saying that a group of investors headed by Aberdeen Asset Management have claimed damages of US$ 150 m from Mahindra Satyam. The investors claimed that they suffered heavy losses after the accounting frauds by previous founder came outside in 2009. The investors have informed that they have filed a claim in the High Court, Queen' Bench Division of Commercial Court in the UK. Over and above the US$ 150 m damages compensation, the investors have also asked for an interest at 8% per annum. Mahindra Satyam is now seeking legal counsel and will then respond to the claims.
Auto stocks have opened the day in the red as well with stocks of Mahindra & Mahindra Ltd. (M&M), Ashok Leyland and Hero MotoCorp leading the pack of losers. India largest car maker Maruti Suzuki's, biggest brand Maruti 800 will now be a history after nearly three decades of existence. The company will replace it with a new model by December 2012. However the new model will be under a completely new brand. It is said that the car will be priced between Rs 250,000 to Rs 350,000 and will have the same F8D engine as used in the base Alto. This engine will be in new avatar so to compete with the new generation cheap cars. Currently, Maruti 800 is selling quite well with 2,000 units a month. The company said that the existing Alto model will not be phased out and the brand is having strong sales of 20,000 units per month.