The major Asian stock markets have opened the day on a mixed note with stock markets in China (down 0.5%) and Malaysia (down 0.2%) leading the losses in the region. However, the stock markets in Japan (up 1.1%), South Korea (up 0.9%) and Hong Kong (up 0.7%) have opened in the green. The Indian stock market indices have opened the day on a positive note. Barring energy and software, all sectoral indices have opened in the green led by stocks in the realty and banking space.
The Sensex today is up by around 55 points (0.3%), while the NSE-Nifty is up by around 13 points (0.2%). Mid and small cap stocks have opened in the green with BSE Mid Cap and BSE Small Cap indices up by around 0.5% and 0.6% respectively. The rupee is trading at Rs 55.04 to the US dollar.
Mining stocks have opened the day on a mixed note with Sesa Goa and Gujarat NRE Coke leading the gains. However, Ashapura Minechem and National Mineral Development Corporation Ltd (NMDC) are witnessing selling pressure. As per a leading financial daily, the Power Ministry intends to make further changes in the latest fuel supply agreement (FSA) that was prepared by Coal India. The Power Secretary Mr. P Uma Shankar believes that the current FSA still contains some clauses that are detrimental to the interests of power developers. Mr.Uma Shankar has flagged 10 issues that need to be modified in the FSAs in a recent communication to his counterpart in the Coal Ministry. He wants the latter to instruct Coal India to resolve the concerns of power producers and make changes in the supply pact. The issues that he has highlighted include annual contracted quantity, end use of coal, source of supply, schedules, collection of samples, termination of contract and 'force majeure' clauses.
Energy stocks have opened the day on a mixed note with Oil India Ltd (OIL) and Castrol leading the pack of gainers. However, Jindal Drill Ltd and Bharat Petroleum Corporation Ltd (BPCL) have opened in the red. As per a leading financial daily, concerns regarding valuations of Reliance Gas Transportation Infrastructure Ltd (RGTIL), the only pipeline company of Reliance Industries' (RIL) are deterring companies from bidding. Oil India has already stepped back while another suitor, Gas Authority of India Ltd. (GAIL), has put the proposal on hold. As per the bankers, earlier the deal was supposed to include RGTIL's four other trunk pipelines which has now been excluded. RGTIL has invested Rs 140 bn in laying the East West pipeline. While promoters of RGTIL expect more than Rs 100 bn, the potential suitors believe that valuation is high since the authorization of other four pipelines has been cancelled.