Indian stock markets open firm

Fri, 2 Sep 09:30 am

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Most Asian stock markets have opened the day on a weak note. Stock markets in Hong Kong (down 1.2%), China (down 1.3%), Japan (down 1.1%) and South Korea (down 1.2%) are leading the pack of losers. However, markets in Malaysia (up 1.5%) are trading firm. The Indian stock market have opened the day on a firm note. Pharma, consumer durables and oil and gas stocks are leading the gains. However, stocks in the realty,capital goods and IT space are trading in the red.

The BSE-Sensex is trading higher by around 53 points (0.3%) and the NSE-Nifty is up by around 19 points (0.4%). Midcap and small cap stocks are trading in the green as well, with the BSE-Midcap and BSE-Small cap indices up by 0.2% and 0.5% respectively. The rupee is trading at 45.92 to the US dollar.

Steel stocks have opened the day on a mixed note with Jindal Steel and Bhushan Steel trading firm, while JSW Steel and Tata Steel are facing selling pressure. State-owned firm Steel Authority of India Ltd (SAIL) is planning to start production from the Chiria mines by 2014. The mines are located in the Naxal-prone Paschimi Singhbhum district of Jharkhand. With proven reserves of over 1.8 bn tonnes, Chiria is one of Asia's largest iron ore mines. According to Chairman C S Verma, the mine will become operational in the next three years with an investment of about Rs 35 bn. On commissioning, it would enable SAIL to more than quadruple its annual steel production capacity to 60 m tonnes (mt) over the next decade.

At present, SAIL produces about 14.5 mt steel annually which accounts for about one-fifth of India's aggregate 60 mt production. The company's iron ore requirement is set to increase from the current 25 mt to 100 mt by 2020 as steel production capacity expands to 60 mt over this period. The Chiria mines would fulfill more than 40% of the 100 mt iron ore requirement of the company.

Pharma Stocks have open the day on a firm note with Sun Pharma, Lupin and Dr Reddy's Laboratories trading in the green. Daiichi Sankyo's generics arm, Ranbaxy Laboratories, has announced that the company will start its mobile healthcare field clinics in India, Cameroon and Tanzania as part of their global social corporate responsibility. This new initiative will be implemented in India through an internal society - Ranbaxy Community Health Care Society (RCHCS). RCHCS is a non-profit NGO created by Ranbaxy. In other countries like Cameroon and Tanzania, Daiichi Sankyo will operate this activity with the help of an international NGO named Plan Japan. Ranbaxy's parent, Daiichi Sankyo has kept aside Yen 200 m for the next 5 years period for this mobile healthcare. India, Cameroon and Tanzania are the countries with highest number of infant and maternal mortalities and also lack easy access to good healthcare services.