The major Asian stock markets have opened the day on a mixed note with stock markets in China (down 1.5%) and Taiwan (down 0.9%) leading the losses. However, the stock markets in Singapore (up 0.7%) and Indonesia (up0.6%) are leading the gains.
The Sensex today is up by around 18 points (0.1%), while the NSE-Nifty is up by around 5 points (0.1%). The midcap and smallcap stocks have also opened in the green with the BSE Mid Cap and the BSE Small Cap up by around 0.2% and 0.4% respectively. The rupee is trading at Rs 62.16 to the US dollar.
Auto stocks have opened the day mainly in the green with TVS Motors and Maruti Suzuki Ltd leading the gains. However, Force Motors and Eicher Motors were witnessing selling pressure. As per a leading financial daily, India's largest car manufacturer Maruti Suzuki India Ltd (MSI) is planning to increase prices across the models by upto Rs 10,000 from the first week of October 2013. The decision to hike prices has been taken to offset increase in the input costs on account of rupee depreciation. While the company has wanted to raise price for some time, it had not been able to do so due to unfavorable market conditions. However, as per the management, the price hike has become inevitable now. The quantum of price hike will range between Rs 3,000 and Rs 10,000, depending upon different models and fuel specifications. It is important to note here that MSI's vehicles that are made in India are priced in the range of Rs 2.35 Lacs to Rs 10.21 lacs. Earlier, the company had hiked prices for all its vehicles in the month of January by upto Rs 20,000 to counter the impact of currency fluctuation.
Oil and gas stocks have opened the day mainly in the red with Oil India Ltd and Oil and Natural Gas Corporation Ltd (ONGC) leading the losses. As per a leading financial daily, Oil and Natural Gas Corporation Ltd's (ONGC) natural gas output is likely to rise by over 53% , to 100 million standard cubic metres a day (mmscmd) by 2017-18. Currently, the natural gas production at ONGC stands at 65 mmscmd. The gain in production is likely to come from new fields in the west and east coasts. It is important to note here that ONGC has been witnessing stagnation in oil and gas output since quite sometime now. However, the situation is likely to improve on account of newer gas finds. As per the management, ONGC's western offshore C-Series gas field has proved to be more prolific than previously estimated. As such, the reserves of 30 billion cubic meters have been upgraded to 130 bcm. The fields currently produce 3 mmscmd and are likely to double output this year. The management has also said that another 7 mmscmd would be added when the Daman structure in the field starts output in 2016. Further, ONGC's G-4 field is expected to contribute 9 mmscmd and the management estimates the potential of entire east coast at around 35 mmscmd. ONGC plans to use Reliance's KG-D6 infrastructure to bring the discovery in the Krishna Godavari basin to production.