Asian stock markets have opened the day with significant losses. Stock markets in Indonesia (down 4.8%), Hong Kong (down 4.2%), South Korea (down 3.5%) and Taiwan (down 3%) are leading the pack of losers. The Indian stock market have opened the day on a weak note as well. Metals
, realty and banking stocks are leading the losses.
is trading lower by around 252 points (1.5%), the NSE-Nifty is down by around 81 points (1.6%). The midcap and smallcap stocks are in the negative as well with both the BSE Mid Cap
and BSE Small Cap
indices down by 1% and 0.8% respectively. The rupee is trading at 48.75 to the US dollar.
Investment & finance stocks have opened the day on a weak note with Infrastructure Development Finance Company (IDFC), Industrial Finance Corporation of India (IFCI), Power Finance Corporation (PFC) and Reliance Capital facing significant selling pressure. Reliance Capital, the financial services arm of Anil Dhirubhai Ambani Group is planning to sell 26% stake in its subsidiary Reliance General Insurance Company. The due diligence process for the same has already commenced and is expected to complete by the end of financial year 2011-12. In March 2011, Japanese major Nippon Life Insurance Co entered into a definitive agreement with Reliance Capital to acquire a 26% stake in the latter's life insurance arm Reliance Life for Rs 30.6 bn. So far, this has been the largest foreign direct investment in the Indian insurance sector. In early September 2011, Nippon Life signed a pact with Reliance Capital to explore further collaboration including a strategic partnership, across all financial businesses promoted by the latter.
Pharma Stocks have opened the day in the red with Aurobindo Pharma, Biocon, Piramal Healthcare and Sun Pharma leading the losses. The Chairman and Managing Director of Indian biotechnology major Biocon has said that the company aims to achieve revenues of US$ 1 bn (approximately Rs 48.6 bn). By doing this it plans to enter the league of the top ten global biotechnology companies in the world. To achieve this growth, the company's main focus will be on chronic diseases such as diabetes, cancer and auto immune diseases. The company is also planning to list its contract research and manufacturing services arm Syngene in the next 18 months.