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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
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Key indices recover after weak start 
(Fri, 6 Sep 11:30 am) 
 
After opening in the red Indian share markets turned positive in the last two hours of trade. Sectoral Indices are trading mixed today. Healthcare and Capital goods are leading the gainers; while Auto and Oil & Gas are leading the losers.

BSE-Sensex is trading up by 87 points and NSE-Nifty is trading up by 17 points. BSE Mid Cap is trading up by 0.4%; while BSE Small Cap is trading up by 0.6%. The rupee is trading at 66.1 to the US dollar at the time of writing.

Engineering stocks are trading mixed today. BGR Energy and Engineers India are leading the gainers; while Manugraph India and Bharat Earth Movers are leading the losers. L&T's head of infrastructure and construction division, Mr. Subrahmanyan has said that enquiries for water supply and wastewater treatment business have been improving and the company expects its water business to grow by 20% annually. The company is mainly targeting government orders in the water space. The federal and state governments have planned an expenditure of US$ 16 bn for sewage treatment, irrigation and recycling under 12th five year plan. The company is also eyeing desalination projects in West Asia. The company believes that the water segment is the fastest growing segment in the construction space and wants to capitalize on the growing demand. Currently, water segment accounts for 5% of the company's total sales. L&T is up 2% today.

Telecom stocks are trading mixed today. Bharti Airtel and TATA Teleservices are leading the gains while Mahanagar Telephone Nigam Limited (MTNL) and Reliance Communications are trading below the dotted line. Bharti Airtel has said that the company has no intention of buying back British mobile giant Vodafone's stake that it holds in the company. Vodafone holds 4.4% stake in Bharti Airtel. The government had issued new norms for the Telecom sector that bars a telecom operator from holding any kind of stake in competition under Unified Licences. This means that Vodafone will have to sell its entire stake in Bharti. Vodafone and Airtel currently operate on Unified Access Service Licence (UASL) or 2G licences, under which telecom companies are permitted to hold stake up to 9.9% in other firms. However, as per the new rules, telecom service providers operating under previous licences will have to migrate to new licences once their permits expire and sell all the stakes held by them in any rival within a year of getting the UL.

The company also denied that it would buy Mumbai based telecom operator Loop Mobile due to the uncertainty regarding M&A norms in the telecom sector.

Bharti Airtel had recently raised equity of Rs 68 bn by selling 5% stake to Qatar Foundation, largely to reduce the debt on its balance sheet. Its debt to EBITDA ratio currently stands at 2.5 which is lower than its peers in India. Bharti Airtel is trading up by 2.1%.

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