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Major Asian stock markets have opened the day on a positive note. The stock markets in Singapore and Japan are trading higher by 1.8% and 0.8% respectively. Major indices in Europe and US ended their previous session in green. The rupee is trading at 67.7 per US$.
Indian stock markets have opened the day on a firm note. The BSE Sensex is trading higher by 190 points (up 0.8%) and NSE Nifty is trading higher by 52 points (up 0.7%). Both, BSE Mid Cap and BSE Small Cap are trading higher by 0.3% and 0.6% respectively. Major sectoral indices have opened the day in green with stocks from automobile and pharmaceutical sectors witnessing maximum buying interest.
As per an article in leading financial daily, telecom operators will be challenging, Delhi High Court's order to compensate users for the call drops. The telecom operators will appeal the order in the Supreme Court.
The telecom regulator had on 16 October issued a notification that the telcos would have to credit Rs.1 to a user for every call drop, subject to a maximum of Rs.3 per day from 1 January 2016. The telcos challenged this notification on 11 December 2015 in the Delhi high court. However, Delhi high court had ruled against the telecom operators and had asked them to pay the call drop charges.
Telecom companies are contending that compensation for call drops may lead to an additional burden of around Rs 540 billion on the industry per annum. The telecom companies have already made large investments in 3G and 4G spectrums. Thus in the event of adverse ruling the companies will have to bear additional outflow and thus will impact their financials.
In another news update, Housing development financial corporation (HDFC Ltd) stated that it will raise Rs 20 billion via non-convertible debentures to fund the business needs.
These proceeds will be raised on a private placement basis by issuing secured redeemable non-convertible debentures and will carry a coupon rate of 8.75% per annum.
The proceeds of the issue would be utilized for financing/ refinancing the housing finance business requirements of the corporation. Previously in October, HDFC had raised over Rs 100 billion through a mix of warrants and non-convertible debentures from qualified institutional investors. The stock is trading up by 1.8%.
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