Indian share markets open weak

Thu, 20 Dec 09:30 am

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Barring South Korea (up 0.2%), the major Asian stock markets have opened the day on a negative note with stock markets in Japan (down 1.0%), China (down 0.5%) and Taiwan (down 0.9%) leading the losses. However, the stock markets in China (down 0.2%) and Indonesia (down 0.4%) have opened on a weak note. The Indian share market indices have also opened the day in the red. The sectoral indices have opened mixed with stocks in the pharma and software space leading the gains. However, the stocks in realty and consumer durables space are witnessing selling pressure.

The Sensex today is down by around 19 points (0.1%), while the NSE-Nifty is down by around 8 points (0.1%). Mid and small cap stocks have however opened in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.1% each. The rupee is trading at Rs 54.74 to the US dollar.

Power stocks have opened the day on a mixed note with Satluj Vidyut Ltd and Torrent Power Ltd leading the gains. However, Reliance Power Ltd and Reliance Infrastructure Ltd witnessed losses. As per a leading financial daily, India's principal electric power transmission company Power Grid Corporation of India (PGCIL) has been given approval for investment proposal worth Rs 2.5 bn. The first investment proposal is for 'Northern Region System Strengthening Scheme - XXVII'. Its estimated cost is around Rs 962 m with a commissioning schedule of 20 months from the date of investment approval. Besides, the second investment approval is for 'Augmentation of Transformers in Northern Region - Part-A'. The project's estimated cost is Rs 1.5 bn with commissioning schedule of 22 months from the date of investment approval.

Auto stocks have opened the day on a mixed note with TVS Motors Ltd and Maruti Suzuki Ltd leading the gains. However, Maharashtra Scooters Ltd and Mahindra & Mahindra Ltd faced selling pressure. As per a leading financial daily, Maruti Suzuki Ltd is exploring a foray into the country's fast growing light commercial vehicle space. Currently, the segment is dominated by Tata Motor's Ace that has over 50% market share. As per the industry sources, the project is codenamed 'AP' .If an actual investment happens, Maruti's entry into light commercial vehicle (LCV) space could happen between 2015 and 2017.While the company has Omni Van used as cargo vehicle, it lacks a diesel engine and hence does not provide a competitive offering in the load-carrier segment. With the development of company's two-cylinder, 800 cc diesel engine for the passenger car shifting to India, it is actively exploring options to enter LCV segment. The company may develop an all-new platform or it may tweak the Suzuki carry pickup truck platform (which is sold in South East Asia) to handle the overloading abuse in the country.