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After opening the day on a negative note, the Indian indices registered further losses and continued to trade in the red. Sectoral indices are trading on a discouraging note with stocks from the consumer durables, telecom and metal sectors witnessing maximum selling pressures.
The BSE Sensex is trading down 118 points (down 0.5%) while the NSE Nifty is trading down 28 points (down 0.4%). The BSE Mid Cap index is trading down by 1% and the BSE Small Cap index is down by 0.6%. The rupee is trading at 67.36 to the US$.
Stocks in the information technology space are trading on a mixed note with Mphasis leading the gains and HCL Infosys leading the losses. As per a leading financial daily, Wipro has picked up a minority stake in US-based Emailage Corporation. This is believed to be a strategic investment. Emailage Corporation is a risk assessment and fraud prevention company.
The said investment is in line with Wipro's strategy to participate in the external innovation ecosystems, for which the company has setup Wipro Ventures.
Wipro Ventures is the strategic investment arm of Wipro, which invests in early to mid-stage start-ups. It is a US$ 100 million fund that leverages the global reach and scale of Wipro with the speed and innovation of start-ups to deliver disruptive products and services to Fortune 500 customers. It invests in areas like Open Source, Big Data and Analytics, Artificial Intelligence, Digital, the Internet of Things (IoT) and Security.
On a separate note, Wipro has recently won a multi-year engagement with NRGi, one of the top five utility providers in Denmark. As part of the contract, Wipro will develop a new IT platform to transform the utility company's CRM, Billing and Service Bureau operations.
Wipro will design, build, host and deploy a Customer Information System (CIS) for NRGi in a Platform as a Service (PaaS) model. CIS as a service solution is based on Oracle's Customer Care and Billing platform, Meter Data Management platform and Oracle CX Solutions. This platform will drive the digital transformation at NRGi to enable the utility company to become more customer centric. Also, this IT platform will enable NRGI to offer CIS services to other small to medium sized utility companies in Denmark through a 'Service Bureau' model, to boost its revenue growth.
Wipro is a global information technology, consulting and outsourcing company serving clients in over 175 cities across 6 continents. The above developments augurs well for the company. As we had stated in our result analysis report of the company (subscription required), 'The company's focus on these new areas as well as on productivity enhancing measures like automation will hold it in good stead.'
Presently, Wipro is trading down by 0.5%.
Majority of pharma stocks are trading on a negative note with Wockhardt and Natco Pharma witnessing maximum selling pressures. In another news update, Cipla has announced that its wholly owned subsidiary has made an additional investment in Chase Pharmaceuticals Corporation Inc., towards full settlement of its obligation under the earlier agreed arrangement.
It was reported that Cipla's wholly owned subsidiary - Cipla (EU), UK (Cipla UK), has made an additional investment of US$ 3 million in Chase Pharmaceuticals Corporation Inc., US (Chase). The investment was towards full settlement of the company's obligation under the agreed arrangement announced in May 2014 for an investment in Chase.
Consequent to this development, Cipla UK's total investment in Chase would aggregate to approximately US$ 5.12 million for a 16.7% stake on a fully diluted basis.
Cipla is a global pharmaceutical company. Its portfolio includes 1,500 plus products across therapeutic categories. Presently the stock if trading lower by 0.6%.
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