The major Asian stock markets have opened the day on an encouraging note. Stock markets in Hong Kong, Japan and China are up 2.5%, 1.9% and 1.4% respectively. The European stock market ended their previous session on a disappointing note. However the stock market in US ended their previous session on a robust note, the US benchmark indices closed higher by 4.1% yesterday. The rupee is trading at 65.87 per US dollar.
Major stocks in the telecom sector have opened their day in red. Bharti Airtel has bought 'Augere' a company that owns 4G spectrum in Madhya Pradesh and Chhattisgarh. Airtel has signed a definitive agreement to acquire 100% equity stake in Augere Wireless Broadband India Private Ltd at an undisclosed amount. The acquired company holds 20 MHz (megahertz) of broadband wireless access spectrum in the telecom circle of Madhya Pradesh and Chhattisgarh. The acquisition will give Bharti the right to use 2300 MHz spectrum in a total of nine circles. Reportedly it is believed, Airtel has spent Rs 1300 m to buy Augere. Airtel has already rolled out its 4G services in more than 300 cities. As per an article in Livemint, the data market in Madhya Pradesh and Chhattisgarh is estimated to be valued around $ 200m. The stock of Bharti Airtel is trading up by 2%.
Stocks in the power sector have opened their day on a negative note. A tripartite agreement (TPA) between Reserve Bank of India (RBI), the Union government and the state governments, which provided comfort or guarantee to power generators against payment default by State Electricity Board (SEB) will lapse in October 2016. If SEBs defaulted in their payments to power generators, the states would risk a deduction from its annual transfers which they receive from the central or union government. National Thermal Power Company (NTPC) which has a 17% share of Indias power generation capacity is lobbying the government to extend the agreements. An executive of NTPC stated, the centeral government has assured them that the TPAs will be renewed. The tripartite agreements were inked based on the recommendations of a committee headed by the Montek Ahluwalia. The stock of NTPC is trading down by 0.2%.