Indian stock markets open weak

Thu, 8 Sep 09:30 am

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Asian stock markets have opened the day on a mixed note. While stock markets in Hong Kong (down 0.8%) and Singapore (down 0.2%) are facing selling pressure, the markets in China (up 1.8%) and Indonesia (up 0.3%) are trading firm. The Indian stock market have opened the day on a weak note. Oil and gas and banking stocks are leading the losses. However, stocks in the IT and technology space are trading firm.

The BSE-Sensex is trading lower by around 68 points (0.4%), while the NSE-Nifty is down by around 18 points (0.4%). While the BSE Mid Cap index has opened on a flat note, the BSE Small Cap index is up by 0.2%. The rupee is trading at 46.24 to the US dollar.

Power stocks have opened the day on a mixed note with Torrent Power and Reliance Power trading firm. However, National Thermal Power Corporation (NTPC), Power Trading Corporation (PTC) India and GVK Power and Infrastructure are facing selling pressure. According to a performance audit conducted by Comptroller and Auditor General (CAG), state-run firm Coal India (CIL) has been operating 239 mines in its 7 coal producing subsidiaries without environmental clearances. These include 48 open-cast, 170 underground and 21 combined mines. Such mining activities were in total violation of the instructions of the Ministry of Environment and Forests (MoEF). Further, as per the CAG report, of the 18 sample open-cast and eight underground mines, ten mines had undertaken capacity expansion without environmental clearances. The increased output from there was about 45.7 m tonnes during April 2002 to March 2010. With 470 mines, CIL accounts for over 85% of domestic coal production. The company registered an output of 431 m tonnes during the financial year 2010-11. The stock of CIL has opened in the red.

Pharma Stocks have opened the day on a firm note with Sun Pharma, Ranbaxy Laboratories and Cipla leading the gains. Aurobindo Pharma and Russian healthcare equipment company OJSC Diod announced an establishment of a 50-50 joint venture (JV) in Russia. The name of the JV is Aurospharma Company. The JV is established to manufacture and sell the pharma products in Russia, Belarus and Kazakhstan. The JV plans to construct a state of the art plant. It will manufacture Non Penicillin and Non Cephalosporin Rx generics drugs that are also known as the over-the-counter (OTC) products in Russian market. Diod will also transfer its 100% interest in the CJSC Olifen to the JV. CJSC Olifen is in the business of producing pharmaceutical substances. The said transfer of interest to the JV will be subject to the regulatory approval.