Most Asian equity markets opened lower today. Stocks fell as soft US economic data added to investor concerns. The Shanghai Composite is off 0.94% while the Hang Seng is down 0.21%. The Nikkei 225 is trading lower by 0.31%. The US equities were lower across the board in their previous trading session amid the geopolitical concern.
Meanwhile, share markets in India have opened the day on a flat note. The BSE Sensex is trading up by 19 points while the NSE Nifty is trading down by 7 points. The BSE Mid Cap index and BSE Small Cap index have opened the day up by 0.2% & 0.3% respectively.
Sectoral indices have opened the day on a mixed note with energy sector and realty sector leading the pack of gainers. While fast moving consumer goods stocks and metal stocks have opened the day in red. The rupee is trading at 64.32 to the US$.
Indian Oil Corporation share price (EQOIC.NS; INOIY) surged by 1.6% after it was reported that a memorandum of understanding was signed for the capacity expansion of the Numaligarh Refinery in Assam. The MoU was signed among Paradip Port Trust, Indian Oil Corporation Limited and Numaligarh Refinery Limited.
Under the expansion project, a 28-inch diameter and 1400-kilometre-long crude oil pipeline of 1 MMTPA capacity will be laid for transporting 6 mmtpa of imported crude oil from Paradip Port in Odisha to Numaligarh in Assam.
Mining stocks opened the day on a mixed note with NMDC Ltd and Hindustan Zinc leading the losses. According to an article in a leading financial daily, the national coal quality watchdog has downgraded 177 of Coal India Ltd’s (CIL) 413 mines, potentially impairing the monopoly miner’s profitability, starting from the current year. The downgrades took effect 1 April.
Owing to this, thermal power companies would be paying less for their coal requirement this month onwards. While the financial impact of this major exercise, both on CIL as well as its customers, is still being worked out, there could be significant monetary loss to CIL and an equivalent gain to its consumers as downgrade of quality means prices would be revised downward.
