The major Asian stock markets have opened the day on a negative note with market in Singapore (down 0.9%) and Hong kong (down 0.4%) leading the pack of loses. Both the European stock market ended yesterday's trading session on a dismal note. The rupee is trading at 65.22 per US dollar.
Indian stock markets have also opened on a flattish note amidst weak global cues. BSE-Sensex is trading down by 21 points (down 0.08%) and NSE-Nifty is trading down by 16 points (down 0.2%). However, the stocks in mid cap have opened slightly higher. S&P BSE Midcap is trading up by 0.2% while S&P BSE Smallcap is trading down by 0.05%. Sectoral indices have opened the day on a mixed note with stocks from automobile and information and technology (IT) space witnessing the maximum selling pressure. However stocks in the pharmaceutical and FMCG spce are top gainers in the pack.
Stocks in the automobile sector have opened their day on a negative note. As per an article in Economic Times, the Gauhati High Court has banned the launch and sale of small cars. The ban is imposed in Assam for small cars which do not meet the crash test norms. The order comes in response to a petition filled in order to make the vehicles safer. Popular models such as Hyundai i-10, Maruti Suzuki's Alto and Swift and Honda Motors Jazz have been stopped in Assam. The petitioners said crash test such as the Global New Car Assessment Programme (NCAP) which are followed in Europe and other developed markets should be applied to cars sold in Assam as higher safety standards are required in the mountainous regions. Industry veterans have stated that their cars meet frontal test norms, and the stricter frontal offset crash tests would apply only from 2017.
Major stocks in the capital goods have opened their day in red. As per an article in a leading financial daily, a thermal power plant constructed by Bharat Heavy Electrical Limited (BHEL) has come under the scanner with Uttar Pradesh Electricity Regulatory Commission. The plant cost was over 70bn and it took nearly 8 years for getting commissioned. Reportedly, the plant has not been able to run properly and has tripped several times. A series of attempt has been made to fire up the unit. All such attempts have failed and it has put a big question mark on the quality of machines and turbines. Stock of BHEL is down by 0.53%