Indian indices continued their northward movement on buying interest in heavy weights during the previous two hours of trade. Stocks from banking and metal space are the maximum gainers while stocks from the healthcare and IT space are the minimum gainers.
The BSE-Sensex is up 193 points while NSE-Nifty is trading 57 points above the dotted line. BSE-Midcap is trading up by 0.8 % while BSE-Smallcap index trading 1.1% above yesterday's closing. The rupee is trading at 45.27 to the US dollar.
Healthcare stocks are trading mixed with Glenmark Pharma and Orchid Chemicals trading firm and Opto Circuits and Sun Pharma trading weak. As per a leading financial daily, Sonake Pharmaceuticals, a South African based joint venture of Ranbaxy Laboratories', has won a US$ 133 m order to supply anti-retroviral (ARV) drugs. This drug is for prevention and treatment of AIDS and the contract is for supply over the next two years. It may be noted that the South African government had earlier floated a Rand 4.28 bn national ARV drugs tender earlier as the government aims to reduce the number of new HIV infections by 50% by 2011-12. It further aims to provide anti-retroviral (ARV) treatment to 80% of South Africans living with HIV and AIDS. As per a press release, the medicines will be manufactured in South Africa and at Ranbaxy facilities in India.
Sonake Pharmaceutical is a joint venture between Ranbaxy Pharmaceuticals and Community Investment Holding. It is the second largest local supplier of generic ARV medication in South Africa. Earlier, the company was appointed by the Government to supply generic ARVs throughout South Africa. Sonake Pharmaceutical also provides generic ARVs to Botswana and Namibia. The company has launched 16 products to date, 8 of which are manufactured locally in South Africa. With this order, the company will now be able to introduce another 9 ARVs in the market.
Telecom stocks are trading firm led by Idea Cellular and Tata Communications. However, Bharti Airtel is trading weak. DoT has directed telecom service providers Tata Tele Services Ltd and RCOM to stop the launch of 3G services due to security concerns. However, the directive is related only to the video calls available on the 3G platform. 3G mobile services allow users to access internet and download songs & movies at much faster pace, besides making video calls. Recently, when a demonstration was carried out by service providers, the law enforcement agencies pointed out that there is no mechanism to intercept online long duration video calls. And hence, the telcos were asked to stop the service. However, private operators have been given few months to upgrade their networks for full interception after which the service can resume as envisaged. Nonetheless, it is interesting to note that both BSNL and MTNL have been offering 3G services since the last two years but were never issued any directive from DoT over the same issue.