Indian equity markets continued to trade in the red during the previous two hours of trade. Sectoral indices traded mixed with realty and banking stocks being top losers. However, IT and capital goods stocks were trading in the green.
The BSE-Sensex is trading lower by 51 points and NSE-Nifty is trading down by 29 points. BSE Mid Cap and BSE Small Cap indices are trading down by 0.4% and 0.2% respectively. The rupee is trading at 54.00 to the US dollar.
Engineering stocks are trading mixed with Jyoti Structure and Alstom Projects as top gainers and Shanthi Gears and TRF Limited as top losers. As per a leading daily, Crompton Greaves (CG) has signed a joint venture with PT Prima Layanan Nasional Enjinring (PLNE) for setting up of a switchgear plant in Indonesia. The venture to manufacture and commercialize high voltage (HV) and extra high voltage (EHV) switchgear in Indonesia will cater to the requirements of South-east Asian and Pacific markets. The joint venture will be owned 51% by CG and 49% by PLNE and will be a part of CG's global organisation. It would involve technology transfer by CG for the production of the entire range of switchgears from 70kV to 500KV. The production is expected to start within next couple of years. We may note here that PLNE is an engineering company owned by PLN (Perusahaan Listrik Negara), an Indonesian government-owned sole electricity utility company.
Telecom stocks are trading weak led by Himachal Futuristic and ITI Limited. As per a leading daily, Bharti Airtel has announced that it will sell 5% stake to Doha-based Qatar Foundation Endowment (QFE) for around Rs 68 bn (USD 1.26 bn). Under the agreement, Bharti would be issuing 199.87 m shares to QFE at a price of Rs 340 per share implying a premium of 7.3% over the stock's last closing price. As per the management of Bharti, this is a step towards strengthening their shareholder base and fund its future growth plans. The transaction would further strengthen the economic and cultural relations between India and Qatar. QFE is considering this as an opportunity to tap the potential of growing telecom business in emerging markets.