Indian share markets open weak

Wed, 16 Jan 09:30 am

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The major Asian stock markets have opened the day on a mixed note with stock markets in Japan (down 1.5%) and China (down 0.4%) leading the losses. However, the stock markets in Singapore (up 0.3%) and South Korea (up 0.3%) have opened firm. The Indian share market indices have also opened the day on a weak note. Stocks in the software and banking space are leading the losses. However, oil and gas and FMCG sector are leading the gains.

The Sensex today is down by around 20 points (0.1%), while the NSE-Nifty is down by around 6 points (0.1%). Mid and small cap stocks have opened in the green with the BSE Mid Cap and BSE Small Cap indices up marginally by around 0.1% each. The rupee is trading at Rs 54.72 to the US dollar.

Oil & gas stocks have opened the day on a firm note with Reliance Ind. Ltd (RIL) and Gas Authority of India Ltd leading the gains. As per a leading financial daily, state run Oil and Natural Gas Corporation Ltd (ONGC) has stated that it will produce 27 million tonnes of crude oil from its own fields and its share in joint ventures in the financial year 2013 (FY13). At these levels, the firm will be slightly short of its target of 27.5 million tonnes (MT). For its own fields, ONGC has revised its production guidance from 23.98 MT to 23.64 MT in FY13. For the following year (FY14), ONGC expects total crude oil production to increase by around 2 MT to 29.1 MT. As per the management, this should include 25.78 MT from its own fields and the balance will be from its share of output in joint ventures. ONGC's total hydrocarbon output (including natural gas from its standalone and joint-venture fields) in FY14 is targeted to be 55.545 million tonne of oil equivalent (mtoe). This is 5.3% higher than a likely production of 52.74 mtoe in FY13.

Auto stocks have opened the day on a mixed note with Bajaj Auto and Ashok Leyland leading the gains. However, Tata Motors Ltd and Hero MotoCorp Ltd faced selling pressure. As per a leading financial daily, Mahindra & Mahindra Ltd (M&M) has hiked the capacities of some its best selling brands viz. Quanto, XUV 500 and Rexton with immediate effect. The step has been taken in response to overwhelming demand for the Quanto, XUV500 and Rexton across the country. With the increase in capacity for these three products, the company hopes to bring down the waiting period for these popular products and hence ensure early deliveries for its customers. Besides, the company has opened the bookings for these brands across more centres in India. The capacity for the Quanto has been raised to 3,500 units, XUV500 to 4,500 units and the Rexton to 500 units per month.