After opening in red Indian share markets continued to trade weak in the last two hours of trade. All the sectoral indices are trading in the red except IT index.
BSE-Sensex is trading down by 314 points and NSE-Nifty is trading down by 103 points. BSE Mid Cap is trading down by 1.01% and BSE Small Cap index is trading down by 0.57%. The rupee has crossed 65 levels and is trading at 65.4 to the US dollar at the time of writing.
Telecom stocks are trading in the red today with Reliance Communications, Idea Cellular and Bharti Airtel leading the pack of losers. The Department of Telecommunication (DoT) is considering extending the cross-holding rules. The rules would be extended for unified Licensing (UL) to unified access service (UAS) and cellular mobile telephone service (CMTS) licenses. According to the new rules, incorporated in the UL regime, telecom operators with spectrum in the same service areas have been barred from holding equity in one another. This ruling might hit UK telecom major Vodafone as it holds a 4.4% stake in Bharti Airtel. At present, incumbent operators such as Vodafone, holding both UAS and CMTS licenses in various circles, are not required to migrate to the new UL regime. So, Vodafone would not have had to sell this stake within 12 months, as mandated by the cross-holding rules for UL. But if the same rules are now extended to UAS and CMTS licenses too, it will be left with no choice but to sell its stake within a year despite weakness in the market.
Hotel stocks are trading mix today. The Indian Hotels and Hotel Leelaventure are the only gainers, while Oriental Hotels and EIH ltd are leading the losers. According to a leading business daily, Indian Hotels is in the process to open 19 new properties under 'The Gateway Hotels and Resorts' brand in four years as part of its expansion plans. Thus, the company will be adding another 2,000 rooms to its present strength and the total number of hotel will be 42 by 2017. The new hotels will be opened in Kolkata, Raipur, Pune, Hyderabad, NCR, Bangaluru and Gondia in Maharashtra. Despite the current slowdown, the management is optimistic about the hospitality sector of India. Therefore, the company is going ahead with its expansion plan. Indian Hotels is trading up by 1% today.