After opening firm, the Indian indices are trading well above the dotted line in the morning session. All sectoral indices are trading in the green. The buying interest is the highest in banking and FMCG stocks.
The BSE-Sensex is trading up 175 points and the NSE-Nifty is trading up 55 points. The BSE Mid Cap index is trading up 0.6% and the BSE Small Cap index is trading up 0.7%. The rupee is trading at 62.15 to the US dollar.
Telecom stocks are trading mixed today. While Tata Teleservices and Mahanagar Telephone Nigam Limited (MTNL) are leading the gainers, Bharti Airtel and Reliance Communications are leading the losers. India's largest telecom service provider, Bharti Airtel, is facing legal troubles in Africa. Its subsidiary in the country of Nigeria has lost a long standing case to Econet Wireless Nigeria (EWN). The case relates to the shareholding of the company. A Nigerian court has upheld EWN's claim that it holds 5% stake in the firm and Airtel has been ordered to pay it a compensation of about US$ 3 bn. Bharti has challenged the order in the Supreme Court of Nigeria. Bharti Airtel holds 79.06% stake in Airtel Nigeria. Nigeria is the largest market for Airtel in Africa as it contributes about 30% of revenues from the continent. Bharti Airtel is trading down 0.8% today.
Indian pharma stocks are trading mixed today. While Panacea Biotech and Ranbaxy are trading lower, Natco Pharma and Dishman Pharma are trading higher. Sun Pharma has announced its 3QFY14 results. The company has reported 51% YoY growth in sales led by growth in domestic and international formulation business. Its US generics business did well which grew by 79% YoY during the quarter. The company continued to benefit from drugs such as Doxil where it is the sole supplier in the US in light of the problems that the innovator Johnson & Johnson is facing. Its operating margins improved by 1.9% to 46.4% for the quarter largely on account of reduction in raw material and staff costs (as percentage of sales). Strong growth in operating profits and higher other income along with miniscule growth in tax expenses, led to healthy growth in bottomline by 74% YoY.