After starting todayís session on a volatile note Indian indices have been lingering in the red. Other key Asian markets are also marginally in the red. Stocks from oil & gas and realty space are trading strong while stocks from IT and FMCG space are in the red.
The BSE-Sensex is trading down by around 22 points, while the NSE-Nifty is down by about 9 points. However, buying interest is being witnessed among mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are trading higher by 0.5% and 0.6% respectively. The rupee is trading at 46.87 to the US dollar
As per leading news daily, Infotel Broadband Services Pvt Ltd, a vehicle of Reliance Industries Ltd (RIL), may opt for WiMax as the core technology to offer broadband services. After RIL acquired 95% stake in Infotel it was expected that the company would tilt towards Long Term Evolution (LTE) to offer broadband services. It should be noted that right now all the telecom operators are trying to choose between WiMax and LTE as a core technology for offering broadband services. RIL is planning to adopt a technology that can alternate between WiMax and LTE. Right now global hardware suppliers are eyeing RILís move so that they can tender their bids accordingly. In India, where broadband penetration is less than 1% and the subscriber base is a mere nine million, huge opportunity awaits Indian players and the right technology can make the growth that much faster.
Pharma stocks are trading mixed with Dishman Pharma and Aurobindo Pharma leading the gainers. According to a leading business daily, after amassing over US$3.2 bn (around Rs 130 bn) from the sale of its domestic formulations business Piramal Healthcare is likely to sell its medical diagnostics business next. The buyer this time is likely to be Super Religare Laboratories, owned by Malvinder Singh. In 2008 he had struck a deal with Daiichi (Japan) by selling a majority stake in Ranbaxy Laboratories for US$ 4.6 bn (around Rs 215 bn). This news has however not been confirmed by Piramal Healthcare.
At the end of FY10, the diagnostics business reported sales of Rs 2.1 bn. The profits of the business are however not disclosed. The question however remains as to how Piramal plans to utilize the cash accumulated from the sale of these businesses.