Indian markets up on Asian cue

Fri, 8 Apr 09:30 am

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Asian stock markets have opened the day in the green. Stock markets in Japan (up 0.9%), Hong Kong (up 0.6%), Indonesia (up 0.4%) and China (up 0.3%) are the leading gainers. Indian stock markets have opened the day in the green. Stocks from consumer durables and banking space are leading the gains. However, auto stocks are trading in the red.

The BSE-Sensex is trading higher by around 77 points (0.4%), while the NSE-Nifty is up by around 20 points (0.3%). Mid and small cap stocks are also trading firm, with both the BSE Midcap index and BSE Small cap index up by 0.5% and 0.7% respectively. The rupee is trading at 43.99 to the US dollar.

Auto stocks have opened the day on a weak note with Hero Honda, Tata Motors and Ashok Leyland leading the pack of losers. M&M (Mahindra & Mahindra) is preparing to roll out a range of products across it s business segments during the current fiscal year 2011-12. It is also evaluating the viability of launching the vehicles of its Korean brand Ssangyong. One of the products to be launched is Korando SUV. This will be a premium product brand in India and will be positioned at the top end category. However, the company is looking at volume market through Ssangyong brands in the domestic market. The utility vehicle and tractor manufacturer is weighing the options to offer the Ssangyong products in India at competitive prices with significant localisation. While M&M has several plants to make these products the company is yet to finalize the same.

Power stocks have opened the day on a positive note. Jaiprakash Power and NTPC are leading the gains. Anil Ambani controlled Reliance Infra has been denied extension of its power distribution license for Mumbai by the Maharashtra Electricity Regulatory Commission (MERC). The company had sought an extension or renewal of its existing license which expires in August 2011. However, the regulator has told the company to apply for a fresh license. Currently Reliance Infra distributes electricity in the suburban parts of Mumbai. It has the largest consumer base after government controlled BEST (Brihanmumbai Electricity and State Transport). Reliance Infra would now have to submit an Expression of Interest (EoI) for applyi8ng for a fresh distribution license. This means that the company would have to go head on with the other competitors who are also applying for the same license. The company would be competing against Tata Power, Maharashtra State Electricity Distribution Company, Torrent Power Ltd., Lanco Infra, GMR Energy among others.