After opening positive, the Indian Indices have continued to gain momentum during the morning trading session. Apart from IT stocks, broad based buying interest is prevalent in the markets. Banking and engineering stocks are leading the gainers.
Majority of the Indian pharma stocks are trading firm with Dishman pharma and JB chemicals being the leading gainers. A financially daily reports that the salaries of Ranbaxy Ltd will be getting pay cut shield post the acquisition by Sun pharma. It is important to note that the salaries of both the companies differ quite significantly. The salaries of Ranbaxy are on higher end. Salaries in Sun and Ranbaxy differ by 20-30%. Reportedly, the agreement agreed to by Sun pharma for a buyout of Ranbaxy from its parent company Daiichi Sankyo provides for a year's 'cooling period' during which the pay of Ranbaxy employees cannot be lowered. Further, Ranbaxy is said to have also budgeted around Rs 650 m for a retention bonus and identified 70-75 executives to distribute this. Thus Sun pharma may not be able to lower the salaries at least till Dec 2015. However, concerns related to inconsistency in the long term continue to prevail.
All the telecom stocks are trading in the green today. Idea Cellular and Tata Communications are leading the gainers. As per a leading financial daily, the Bharti Airtel-Loop deal is witnessing some progress but it is still far from going through. Loop has sought time till 31 October to comply with the regulator TRAI's direction to inform its customers about the end of its services. The company has sought this extension as the Department of Telecom (DoT) has not yet approved the deal. The company's license will expire on 29 November and has not renewed it. The Dot estimates that Loop owes the government about Rs 8 bn and has thus held up the deal. Both Bharti and Loop have appealed to the DoT to approve the deal quickly as the end user would be at the receiving end of this logjam.