Indian stock markets open in red

Tue, 23 Aug 09:30 am

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Asian stock markets have opened the day on a firm note. Stock markets in South Korea (up 2.5%), China (up 0.9%) and Hong Kong (up 0.4%), are leading the gains. The Indian stock markets have opened the day on a weak note. Banking and Auto stocks are trading weak. However, stocks in the IT and Consumer Goods space are in the green.

The BSE-Sensex is trading lower by around 55 points (0.3%) and the NSE-Nifty is down by around 8 points (0.1%). However, Midcap and small cap stocks are trading in the green, with the BSE Midcap and BSE Small cap indices up by 0.2% and 0.3% respectively. The rupee is trading at 45.75 to the US dollar.

Pharma stocks have opened the day on a firm note with Aurobindo Pharma and Sun Pharma leading the gains. However Biocon is in the red. Biopharma major, Biocon's subsidiary Clinigene International has entered into a joint venture with Spaulding Clinical Research of the US. The partnership will focus in providing comprehensive early clinical solutions to pharmaceutical and biotech clients. The Chief Operating Officer of Clinigene said that the partnership establishes a reliable, trustworthy and cost-efficient global footprint for clinical pharma services. It also provides an opportunity for both companies to engage pharma clients strategically and accelerate first-in-human to proof-of-concept clinical development. The US based company has an expertise in the domain of clinical pharmacology, cardiac core lab and medical device manufacturing. The company also operates a unit having 105 beds in West Bend, Wisconsin (US).

Steel stocks have opened the day on a weak note with Tata Steel and SAIL leading the losses. A steel ministry official admitted that SAIL is planning to make a fresh equity issue to raise money for its on-going modernization and expansion plans. The officials are in the process to file the prospectus with the SEBI by the end of September. The Government expects the stock market valuations to improve towards the end of the year and it wants to be ready for the same. It is said that the Government should be able to raise a significant amount through the sale of part of its stake in SAIL. The government is also planning to sell stake in two other companies -National Aluminium Co Ltd (Nalco) and Hindustan Copper without follow-on offers (FPO). In all the government is planning to garner more than Rs 80 bn. Last year, SAIL had planned a two-tranche FPO of 5% each but could not get it done.