Asian stock markets have opened the day on a mixed note with the markets in China (up 0.5%) and Japan (up 1.1%) leading the gains. However, markets in Taiwan (down 0.7%) and Singapore (down 0.2%) are trading in the red. The Indian share markets have opened the day on a flat note. The sectoral indices are trading mixed with power and oil & gas indices leading the losses. However, the healthcare and IT indices are trading firm.
Power sector have mainly opened in the red with Jaiprakash Power and Indiabulls Power leading the losses. Steel sector stocks have opened mixed with Bhushan Steel and Jindal Steel leading the losses, while Jindal Saw Ltd and Steel Authority of India Ltd (SAIL) are trading firm. We highlighted in yesterday's closing market commentary that the Supreme Court cancelled mining licences for 214 coal blocks out of the 218 coal blocks in question. As per a leading financial daily, the apex court also levied a retrospective penalty of Rs 295 per tonne on the mining companies. Power and steel companies have been the worst hit since these two sectors accounted for 95 and 69 blocks respectively. Of the 4 coal blocks that were let off two were operated by Reliance Power and one each by state-run National Thermal Power Corporation (NTPC) and SAIL. It is said that the government will auction the coal blocks within six months to raise output. It is likely to ask Coal India to take charge of the 40 operational captive coal mines.
Public sector bank stocks have opened the day on a weak note with Allahabad Bank, Andhra Bank and Syndicate Bank leading the losses. As per a leading financial daily, leading public sector lender State Bank of India (SBI) has decided to split its share in the ratio of 1:10. As such, one equity share of SBI with face value of Rs 10 will be split into 10 shares of Re 1 each. This move is aimed at increasing the liquidity of the stock. The decision is subject to government and regulatory approvals.