Indian share markets open weak

Wed, 19 Jun 09:30 am

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Asian stock markets have opened the day on a mixed note with Japan (up 1.2%) and Taiwan (up 0.3%) leading the gains. However, markets in Hong Kong (down 1.3%) and China (down 1.3%) are facing selling pressure. The Indian share markets indices have opened the day on a weak note. Barring metal and healthcare, all sectoral indices have opened in the red with stocks in the consumer durables and oil & gas space leading the losses.

The Sensex today is down by around 49 points (0.3%), while the NSE-Nifty is down by around 13 points (0.2%). However, mid and small cap stocks are trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.3% and 0.2% respectively. The rupee is trading at Rs 58.66 to the US dollar.

Engineering stocks have opened the day on a mixed note with BGR Energy and Bharat Earth Movers Ltd leading the gains. However, Crompton Greaves and TRF Ltd are trading weak. As per a leading financial daily, engineering major Larsen & Toubro Ltd is planning to bid for hydrocarbon projects outside the country. The move aims at expanding its presence in the global market. Besides, it is aggressively getting into the domestic defence sector worth around Rs 80 bn. As such, the company has bid for a Rs 40 bn contract from the Coast Guards. It is further planning to bid for an equal amount of contracts from the Navy. On the international side, the company is looking at markets including Russia, Malaysia, Indonesia, Southeast Asia, Africa, apart from West Asia and the US, where it has a significant presence in the hydrocarbons business. As per the management, there is a huge opportunity in the hydrocarbons sector in the international market which is likely to contribute to around 55% of company's orders.

Power stocks have opened the day on a mixed note with Torrent Power and Reliance Power Ltd leading the gains. However, GVK Power and Infrastructure Ltd and National Thermal Power Corporation (NTPC) Ltd are witnessing losses. As per a leading financial daily, NTPC and Coal India have settled their differences over the quality of coal. Both the companies are close to signing the long-pending fuel supply agreement. The agreement has some conditions that could see a reduction in NTPC's monthly fuel bills and benefit consumers in 16 states. Earlier, the companies had differences regarding the calorific value of coal from two of CIL's subsidiaries - Eastern Coalfields and Northern Coalfields from which coal is supplied to four of NTPC's mainstay power stations. As per the new formula, NTPC will pay CIL according to the calorific value of coal received at its plants after vetting by a third party. Also, CIL will have to ensure that the coal it supplies has a minimum calorific value of 3,100 kCal (kilo calories).