The major Asian stock markets have opened the day on a mixed note with stock markets in Japan (up 0.2%) and Taiwan (up 0.2%) leading the gains. However, stock markets in Singapore (down 0.5%) and China (down 0.9%) have opened in the red. The Indian share markets have opened the day on a pessimistic note. The sectoral indices have opened mixed with the stocks in the IT and FMCG sector witnessing losses. However, stocks in the consumer durables and realty sector have opened in the green.
Barring few such as Canara Bank, Punjab and Sind Bank and United Bank of India many PSU bank stocks have opened the day on a firm note with IDBI Bank and Syndicate Bank leading the gains. A leading business daily states that a consortium of five nationalized banks, including Bank of Baroda and Bank of India, has sanctioned Rs 11.6 bn for a Gujarat project. The project entails an expenditure of Rs 18.2 bn over the next three years. The project aims to create a financial hub that will compete that of London, Singapore, Dubai and Hong Kong. The lent money will be utilized to build core infrastructure in the city. The project is being executed by Gujarat International Finance Tec-City Company Ltd, a joint venture between state-owned Gujarat Urban Development Company Ltd and Infrastructure Leasing & Financial Services (IL&FS). The project is Mr. Modi's vision of a financial services hub and he has aggressively pitched this idea to bankers, insurance companies and financial services arms over the last year or so. Although it is just the beginning, a pick-up in infrastructure activity and thereby a boost to the credit off-take bodes well for the Indian economy.
Barring few such as Wockhardt Ltd, Orchid Chemicals and Indoco Remedies, many pharma stocks have opened the day on a firm note with Biocon Ltd and Aurobindo Pharma leading the gains. As per a leading financial daily, the drug maker Biocon Ltd has expanded its tie-up with the NYSE listed global pharma major Bristol-Myers and Syngene International, the contract research subsidiary of Biocon itself. While the financial terms are not disclosed, the global major has been working with Biocon to help develop integrated capabilities in medicinal and process chemistry, biology, biotechnology, biomarkers, drug metabolism and pharmacokinetics, analytical research, and pharmaceutical development at the Biocon Bristol-Myers Squibb Research Center (BBRC) in Bangalore. The global counterpart is keen to develop new and innovative medicines in future with the help of such collaborations. In the process, Biocon is expected to largely benefit. However, the R&D expenses of the company might burgeon as Biocon continues to incur trials outside India.