After opening weak, the benchmark Indian Indices have fallen further below the dotted line in the morning session. IT and pharma stocks have borne the brunt of the selling pressure while energy and FMCG stocks are among the gainers.
The BSE-Sensex is trading down 91 points. The NSE-Nifty is trading down 28 points. The BSE Mid Cap index is trading down 0.6% and the BSE Small Cap index is trading down 0.5%. The rupee is trading at 61.46 to the US dollar.
Most Telecom stocks are trading weak today. Mahanagar Telephone Nigam Ltd (MTNL) and Tata Communications are among the leading losers. India's leading telecom tower infrastructure provider, Bharti Infratel, has announced an offer for sale (OFS). In the OFS which will close today itself, the promoter company Bharti Airtel will sell 45 m shares via a special trading window on the stock exchanges. The promoters may sell another 40 m shares over and above the original offer. This will enable Bharti Airtel to meet SEBI's rules pertaining to public shareholding. The rules state that the minimum public shareholding in listed firms should be 25%. Currently Bharti Airtel holds 79.36% stake in Bharti Infratel which must be brought down to at least 75%. The funds will also help India's leading telco reduce the debt on its books. The floor price for the OFS has been set at Rs 250 per share. Bharti Infratel is trading down 6.3% today.
Majority of Hotel stocks are trading in the red with Oriental Hotels and TAJ GVK among the leading losers. The rights issue of Indian Hotels has opened today. Share holders holding 40 shares will be issued 9 Compulsorily Convertible Debentures (CCDs) if they chose to subscribe. The record date for the same has been fixed for 21st July 2014. The issue will close on 20th Aug. The CCDs will be converted to equity shares after 18 months. The company plans to raise up to Rs 10 bn to fund its capex plan. India Hotels is trading down 0.7% today.