Despite persistent efforts to pare the losses witnessed during the early hours of trade today, the Indian stock markets nosedived below the dotted line during the previous two hours of the trade. Currently stocks from the banking, auto and capital goods sectors are dragging the markets lower, while stocks from the healthcare, FMCG, metal and IT sectors are trading in the green.
The BSE Sensex and NSE Nifty are trading lower by 137 and 49 points respectively. BSE Midcap and BSE Smallcap are trading down by 0.8% and 0.6% respectively.The rupee is trading at 48.60 to the Dollar.
According to a leading business daily, the Tata group of companies is planning to revamp its position in the hospitality segment of budget hotels. It plans to build as many as 50 budget hotels in its no frills segment - Ginger, across India in the next four years. It may be noted that Tata Group's hospitality arm Indian Hotels Company already has 20 Ginger hotels across the country. With an average of 100 rooms per hotel, the planned capex will add 5000 rooms to the inventory during the next four years. The company has already started work in the tier-2 cities like Surat, Indore, Tripur and Lucknow. The conglomerate is seeing a pickup in the inbound tourist traffic. The estimated demand for the new upscale rooms in major Indian cities will swell up to 25,000 by 2010. The same in the mid scale and budget segment is expected to stand at around 18,000.
As per a leading business daily, GSK Pharma will forge supply partnerships with Indian and African generics companies as a strategy to expand its business in the emerging markets. The company aims at becoming a major player in these markets through a broad portfolio of branded generics. The company expects that in markets like India only 10-15% of pharma market will account for patented medicines even after a decade, so it needs to focus on generics as a growth driver in these markets. We believe such agreements will help Indian healthcare companies like DRL and Sun Pharma to gain a foothold in the branded generics segment.