Indian stock markets continued to trade in the red across market segments during the previous two hours. Selling is led by mid and small cap stocks. Except software and pharma, all sectors indices are trading in the red. Major losers are stocks from metals and power sectors.
The BSE-Sensex is trading down by 155 points and the NSE-Nifty is trading down by 43 points. The BSE Mid Cap index is trading down 1.4% and the BSE Small Cap index is trading down 2.2% today. The rupee is trading at 61.02 to the US dollar.
Telecom stocks are trading on a mixed note. Bharti Airtel and Idea Cellular are trading on a positive note, while Tata Teleservices is trading in the red. As per a leading business daily, the Department of Telecommunications (DoT) has proposed that Loop Mobile and the Telecom Enforcement, Resource and Monitoring, the arm of the DoT will notify Loop's current subscribers that their network operator will cease to exist once the permit for Mumbai expires in November and those customers need to port out to other network providers. As such, Loop Mobile did not buy back airwaves from auctions this February, which implies it would shut shop and the customers will no longer receive network. This move will affect Bharti Airtel - Loop Mobile deal and might delay the process. Although both companies did not give financial details of the deal, it is believed Bharti Airtel paid Rs 70 bn for Loop, which is considered to be a slump sale as Loop has about 3 m subscriber and about 25,000 cell sites. However, the current DoT's move may affect the financials of the deal. And it comes when Bharti Airtel, has already started making calls to Loop's subscribers asking them to gather the requisite forms which are needed for porting out to Bharti Airtel's network.
Most energy stocks are trading on a weak note led by heavy selling pressure in MRPL and Oil and Natural Gas Corporation (ONGC), while GAIL is trading on a higher note. As per a leading business daily, Brazil state-run Petrobras and ONGC joint venture has discovered natural gas in Brazil offshore extension well. Petrobras owns 75% while its Indian partner ONGC holds 25% of the discovery. This discovery has been made in an area which is believed to hold more than 1 bn barrels of recoverable oil, enough to make the area one of the biggest discovery in Brazil.