Majority of Asian stock indices are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 0.07%, while the Hang Seng is up 1.06%. The Shanghai Composite is trading up by 0.14%. US stocks rose after two days of declines, though a drop in oil prices weighed on energy shares and tensions between the United States and North Korea kept investors on edge.

Back home, share markets in India have opened the day on a firm note. The BSE Sensex is trading higher by 212 points while the NSE Nifty is trading higher by 71 points. The BSE Mid Cap and BSE Small Cap index opened the day up by 0.7% & 0.6% respectively.

All major sectoral indices have opened the day in the green with metal stocks, realty stocks and PSU stocks leading the pack of gainers. The rupee is trading at 64.03 to the US$.

Lupin share price surged 2.6% in the early trade after it was reported that the company has received an establishment inspection report (EIR) from the US Food and Drug Administration for its Aurangabad facility in Maharashtra. EIR indicates closure of inspection.

Energy stocks opened the day on a mixed note with Gujarat State Petronet and BPCL witnessing maximum buying interest. In the latest development, the board of Oil and Natural Gas Corp (ONGC) on Monday gave ‘in-principle’ approval to acquire the government’s 51.11% stake in Hindustan Petroleum (HPCL).

Prior to the merger, HPCL is likely to take over Mangalore Refinery and Petrochemicals (MRPL) to bring all the refining assets of ONGC under one unit. ONGC currently owns 71.63% of MRPL while HPCL has a 16.96% stake in it, the reports noted.

Further, the deal is expected to be completed within a year. HPCL will become a subsidiary of ONGC and will remain a listed company post the acquisition.

So, what lies ahead for the merged entity? Richa Agarwal, our oil & gas sector analyst has shared her views in the recent edition of The 5 Minute WrapUp. Here’s a snippet of what she wrote: