After opening in the green, the Indian indices are trading firm during the morning session. Broad based buying is being witnessed with metal and energy stocks leading the gainers. The healthcare index is trading in the red.
The BSE-Sensex is trading up 66 points. The NSE-Nifty is trading up 19 points. The BSE Mid Cap index is trading up 0.7% and the BSE Small Cap index is trading up 0.8%. The rupee is trading at 61.64 to the US dollar.
Indian pharma stocks are trading mixed. Orchid Chemicals and Dishman Pharma are the leading gainers in the pack, while Ranbaxy Laboratories and Cipla are among the leading losers. Sun Pharmaceuticals have declared September quarter results. The net sales grew by 13% YoY, led by growth in Taro subsidiary and Domestic formulations. The operating margins for the quarter stood at 44% v/s 45% in 2QFY14. The finance costs and depreciation zoomed up by 109% YoY and 60% YoY respectively, during the quarter. However, the taxes declined by 30% YoY compared to the previous year. Subsequently, net profits increased by 15% YoY for the quarter. Sun pharma is trading down by 1.3% at the time of writing.
Most telecom stocks are trading higher today. Tata Communication and Idea Cellular are leading the gainers. The logjam between the Defense Ministry and the Department of Telecom (DoT) regarding the issue of spectrum held by the former may soon end. The Communications and IT Minister Ravi Shankar Prasad will soon meet with newly appointed Defense Minister Manohar Parrikar to resolve the issue as per an article in a leading financial daily. With the spectrum auctions scheduled for Feb 2015, a resolution of this issue will go a long way to reduce the bidding intensity. The Defense Ministry holds a pan-India 15 MHz spectrum (in the 2,100 MHz band) which the DoT has asked for. In return, the Defense Ministry has asked for an equal 15 MHz spectrum (in the 1,900 MHz band) from the DoT which is currently reserved for CDMA players. A quick resolution of this impasse will enable an extra 5 MHz of spectrum for 3 telcos in each circle across the country to be put up for auction.