Barring Indonesia (down 0.4%), the other major stock markets in Asia have opened the day on a firm note with stock markets in Taiwan (up 1%) and Singapore (up 1%) leading the gains. The Indian share market indices have also opened the day on a firm note. Stocks in the consumer durables, realty and metal space are leading the gains. However, FMCG and auto stocks are trading weak.
The Sensex today is up by around 59 points (0.3%), while the NSE-Nifty is up by around 24 points (0.4%). Mid and small cap stocks are also trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.7% and 0.5% respectively. The rupee is trading at Rs 54.44 to the US dollar.
Telecom stocks have opened the day on a firm note with Bharti Airtel, Reliance Communications and Mahanagar Telephone Nigam Ltd (MTNL) trading firm. As per a leading financial daily, India's leading telecom services provider is set to launch the initial public offering (IPO) of Bharti Infratel, its telecommunications tower unit. The offering is expected to comprise 188.9 m shares or 10% of the Bharti Infratel's equity capital. The issue, which will be launched on 11 December 2012 and close on 14 December 2012, is likely to raise up to US$ 825 m. This would make it the biggest IPO in the country over the last two years. As per the daily, the company is expected to set a per share price band of Rs 210 to Rs 240 for the IPO. It must be noted that the company is yet to make an official announcement.
Indian pharma stocks have also opened the day on a firm note with Divi's Laboratories, Cipla and Glenmark Pharmaceuticals leading the gains. As per a leading financial daily, Glenmark Pharmaceuticals expects its revenues to grow by about 25-30% to touch Rs 50 bn during the financial year 2012-13 (FY13). The company's Chairman and Managing Director stated that the US, which has been an important market for the company, will continue to remain a key growth market. In addition, Latin America is another focus area for the drug maker and is expected to be an important growth driver. The Mumbai-based company already markets 82 products in the US market. Another 40 products are awaiting approval from the United States Food and Drug Administration (USFDA). It must be noted that during the financial year 2011-12 (FY12) the company had reported revenues of about Rs 40 bn. Nearly 75% of revenues are contributed by the international market, while about 25% come in from the domestic market.