Most Asian stock markets have opened the day on a firm note with stock markets in Taiwan (up 1.2%), Malaysia (up 0.8%) and Singapore (up 0.6%) leading the gains in the region. However, Japanese markets (down 0.2%) are witnessing selling pressure. The Indian stock markets have opened the day on a positive note. Stocks in the FMCG and realty sectors are witnessing maximum gains.
The BSE-Sensex is up by around 119 points (0.7%), while the NSE-Nifty is up by around 44 points (0.9%). Mid and small cap stocks are trading in the green as well with the BSE Mid cap and BSE Small cap indices up by around 0.8% and 0.6% respectively. The rupee is trading at Rs 54.37 to the US dollar.
Indian pharma stocks have opened in the green as well with Ranbaxy Laboratories, Glenmark Pharma and Piramal Healthcare leading the gains. As per a leading financial daily, Piramal Healthcare recently bought US-based Decision Resources Group (DRG) from private equity firm Providence. DRG which provides proprietary research on healthcare trends, clinical research and mergers & acquisitions in the bio-pharma industry will aid Piramal's nascent drug discovery business predict emerging trends and accordingly change its product portfolio. The purchase of this US-based firm is set to cost Piramal US$ 635 m. By acquiring DRG, Ajay Piramal-led firm has made its first major stride towards building a global pharma company that is focussed on original discovery and intellectual property rights.
Finance stocks have opened the day on firm note with Infrastructure Development Finance Company (IDFC), Power Finance Corporation (PFC) and Reliance Capital trading in the green. The Indian power sector has been short of funding as developers have been finding it difficult to meet certain stringent loan conditions. In a bid to revive the sector of its woes, state-run lender PFC has relaxed certain eligibility conditions for loan disbursals to power projects. Earlier the company had laid strict pre-conditions in order to lower its risks on loans. For instance, since April 2011 PFC had been sanctioning loans to only those power projects that had signed power purchase agreements (PPA) with procurers as well as had assured fuel supply for the plant. However, over the last three months, the company has started lending based on the real development at the project. As per PFC's Chairman, now the company is considering loan requests even if either of the condition is fulfilled.