Indian share markets open weak

Tue, 26 Mar 09:30 am

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Asian stock markets have opened the day on a mixed note with stock markets in China (down 1.5%), Hong Kong (down 0.4%) and Japan (down 0.3%) leading the losses. However, markets in Indonesia (up 0.7%), Malaysia (up 0.5%) and South Korea (up 0.5%) are trading firm. The Indian share markets indices have opened the day on a weak note. Stocks in the oil and gas and realty space are leading the losses.

The Sensex today is down by around 45 points (0.2%), while the NSE-Nifty is down by around 10 point (0.2%). Mid and small cap stocks are also trading in the red with the BSE Mid Cap and BSE Small Cap indices down by around 0.2% and 0.02% respectively. The rupee is trading at Rs 54.18 to the US dollar.

Power stocks have opened the day on a mixed note with GVK Power & Infrastructure and Reliance Power leading the gains. However, Reliance Infrastructure and PTC India Ltd are facing selling pressure. With the commissioning of the fifth and the last 800 megawatt (MW) unit of the 4,000 MW plant, Tata Power has become the first utility firm to start commercial operations of its India's maiden ultra mega power project (UMPP) at Mundra in Gujarat. The project has been developed by Coastal Gujarat Power Ltd (CGPL), a Special Purpose Vehicle (SPV) incorporated in 2006. The total power generation capacity of Tata Power now stands at 8,500 MW. CGPL has inked power purchase agreements (PPA) with seven procurers (distribution licensees) from five states, namely, Gujarat, Maharashtra, Haryana, Rajasthan and Punjab for the sale of contracted capacity. It is worth noting that this is the first of the UMPPs that marks the entry of 800 MW supercritical boiler technology in India. It is said that this technology is environment-friendly and efficient.

FMCG stocks have also opened the day on a mixed note with Marico Ltd and Godrej Consumer Products Ltd (GCPL) leading the gains. However, Lakshmi Energy and Colgate Palmolive India are trading in the red. In a filing to the Bombay Stock Exchange, the board of FMCG firm Colgate Palmolive India has approved the sales of a division- Global Shared Services Organisation to Colgate Global Business Services (CGBSPL). The sale would be made by a lump sum consideration of Rs 598.9 m, effective from June 1, 2013. It will include transfer of all employees, assets, and liabilities to CGBSPL. It must be noted that CGBSPL is a 100% subsidiary of holding company Colgate Palmolive Company, USA.

In a separate filing, Colgate has said that its board has approved a third interim dividend of Rs 9 per equity share of Rs 1 for the financial year ending March 31, 2013. The interim dividend will be paid on the paid-up equity share capital of Rs 136 m. The dividend will be paid on April 19, 2013 and will involve a total payout of Rs 1,422.5 m.