After starting today's session on a positive note, Indian indices have managed to hold onto their gains. Key Asian markets are also in positive territory. Stocks from consumer goods and FMCG space are witnessing strong buying interest while stocks from the IT and banking space are trading in the red.
The BSE-Sensex is trading up by around 57 points, while the NSE-Nifty is up by about 18 points. However, mid and small cap stocks are witnessing strong buying interest as the BSE-Midcap and BSE-Smallcap indices are trading higher by 0.6% and 0.9% respectively. The rupee is trading at 46.28 to the US dollar.
Telecom stocks are currently trading mixed with Idea Cellular and MTNL trading firm while Bharti Airtel and Reliance Communications (RCom) are trading lower. A leading business daily has reported that telecom major RCom's subsidiary Reliance Globalcom (RGL) is in discussion with Morocco's largest bank, Attijariwafa Bank for a five-year agreement. As part of the deal, RGL will review and service the entire international network of the banks, which is believed to be Africa's third largest bank, to help it expand into new locations. The bank has more than 850 branches in Africa. It believed that Attijariwafa Bank is looking to expand its reach in Europe and the Middle East regions. According to sources, the Indian telecom major will receive nearly Rs 2.5 bn annually for the same. This segment would for part of the company's 'Global' business, which contributed to nearly one-third of revenues during FY10 and grew by nearly 25% YoY as compared to the previous year
It may be noted that RCom is looking at divesting nearly 26% stake in RGL, which mainly operates the undersea cable business. All this is part of the company's plan to unlock value by selling stake in its subsidiaries in order to reduce the overall debt on its books.
Retail stocks are currently positive with Shoppers Stop and Titan Industries trading in the green. Titan Industries plans to set up a lens-making plant in Bangalore with an initial investment of Rs 12 m. the facility will be spread across an area of 25,000 square feet. It will offer prescription lenses. 500 units a day will be produced for its two brands 'Signature' and 'Activ'. The company sells eyewear under its brand 'Titan Eye'. It also sells watches and jewellery.
The company plans to set up 137-140 'Titan Eye' stores in FY11. This is almost a 75% increase from its current 80 outlets. Titan Industries had earmarked capex of Rs 15 bn in the current fiscal to expand its manufacturing facilities.