After opening firm, the Indian Indices slipped into red and have remained below the dotted line during the morning trading session. Majority of stocks are trading in red with realty and metal stocks leading the pack of losers. Only stocks from healthcare and capital goods sectors are witnessing buying interest.
The BSE-Sensex is trading down 65 points. The NSE-Nifty is trading down 26 points. However both midcap and small cap stocks are in favour. The BSE Mid Cap index is trading up 0.12% and the BSE Small Cap index is trading up 0.11%%. The rupee is trading at 61.24 to the US dollar.
Indian pharma stocks are trading mixed with Indoco Remedies and Divis laboratories being among the leading gainers in the pack, while Ipca labs and Panacea biotech are the leading losers. As per the financial daily, Ranbaxy laboratories, subsidiary in US Ranbaxy Inc is witnessing high resignations of the top management. Around 5 top executives including the country's head Venkatachalam Krishnan and other heads from various departments have resigned together in the last week. All these top heads were working with the company for more than 10 years. While no specific reason for this attrition is known so far. Reportedly, both the companies viz Sun pharma and Ranbaxy denied to comment on this development. One should note this move comes after few months the India' largest pharma company Sun pharma decided to acquire the former company.
Telecom stocks are trading mixed today. While Bharti Airtel is leading the gainers; Reliance Communications is among the top losers. As per a leading financial daily, the Bharti Airtel - Loop Mobile deal is now in limbo with the Department of Telecom (DoT) yet to clear the file. Loop has about 3 m customers in Mumbai and its license will expire on 29 November 2014. The company did not renew its license due to commercial reasons. Instead, it sold out to Bharti for Rs 7 bn earlier this year. However, the DoT has not cleared the sale as Loop still owes the department about Rs 8 bn. Bharti had asked Loop's customers to port out to its network by submitting KYC documents at its stores but the regulator TRAI had asked the company to stop the porting. As per TRAI, Bharti cannot force Loop's customers to port to the company's network at their own expense. Bharti has asked the government resolve the issue quickly. Bharti Airtel was trading up 1.5% at the time of writing.