The major Asian stock markets have opened the day on a mixed note with markets in Japan (up 1.7%) and Korea (up 1.1%) leading the gains. However, the stock markets in Hong Kong (down 0.7%) and China (down 0.4%) have opened in the red. The Indian stock markets have opened the day on a positive note. Barring software and realty, all sectoral indices have opened in the green with stocks in metal and capital goods segment leading the gains.
Power stocks have opened the day mainly in the green with Torrent Power Ltd and PTC India Ltd leading the gains. However, JSW Energy Ltd and NHPC Ltd were facing selling pressure. As per a leading financial daily, state run firms such as National Thermal Power Corporation Ltd (NTPC) , Damodar Valley Corporation Ltd and other state government utilities will be allocated their captive coal blocks that had been cancelled by the Supreme Court. However, the companies will have to pay a price for the blocks and will not be spared of the additional levy of Rs 295 per tonne as fixed by the Supreme Court. It implies that only half of the mines will be left for auction to the private sector in the first phase in December. The move could offer relief to the state governments after the coal ordinance stripped them of their powers in the coal block allocation process.
Steel stocks have opened the day on a mixed note with Adhunik Metaliks Ltd and Bhushan Steel Ltd leading the gains. However, Tata Sponge Ltd and Tayo Rolls Ltd were facing selling pressure. As per a leading financial daily, Steel Authority of India Ltd (SAIL) has sought Odisha government's support for its raw material requirements in the coming days with an aim to expand the capacity of its Rourkela Steel Plant (RSP). The company plans to invest Rs 300 bn to Rs 350 bn for expansion of the plant's capacity from 4.5 mtpa to 10 mtpa by 2025-26. Earlier, the company had expanded its 2 mtpa steel plant at Rourkela to 4.5 mtpa by investing Rs 120 bn. While SAIL already has two major iron ore reserve clusters at Balani and Barsuan, it is now seeking more such raw material linkage for the proposed expansion.