The major Asian stock markets have opened the day on a mixed note with stock markets in Hong Kong (up 0.3%) and Taiwan (up 0.5%) leading the gains. However, the stock markets in Singapore (down 0.4%) and Japan (down 0.2%) were leading the losses. The Indian share market indices have opened the day on a firm note. All sectoral indices have opened in the green with the stocks in the banking and metal space leading the gains.
The Sensex today is up by around 160 points (0.8%), while the NSE-Nifty is up by around 52 points (0.9%). Mid and small cap stocks have also opened in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.6% and 0.4% respectively. The rupee is currently trading at Rs 62.30 to the US dollar.
Indian Pharma stocks have opened the day mainly in the green with Orchid Chemicals Ltd and Dishman Pharma Ltd leading the gains. As per a leading financial daily, the Cabinet has deferred a decision on the proposal from the Department of Industrial Policy and Promotion (DIPP) to ban complete takeovers by foreign companies of critical lifesaving drugs production facilities. The DIPP had proposed to reduce the limit for Foreign Direct Investment (FDI) from 100 % to 49 %, subject to approval of the Foreign Investment Promotion Board (FIPB). The DIPP felt that over the last two years, a high number of foreign acquirers of cancer oncology injectables and APIs manufacturing facilities post-takeover have shut down the manufacturing units and R&D centre of the acquired companies. This has made the country vulnerable in the critical area. But the Cabinet has decided to postpone the decision following strong opposition from key stakeholder ministries including finance ministry and the Planning Commission.
Food & Tobacco stocks have opened the day mainly in the green with Ruchi Soya Industries Ltd and ITC Ltd leading the gains. FMCG major Nestle India has recently denied any plans by its parent firm to increase stake in the Indian unit. Earlier a media report had suggested that the Swiss multinational food and beverage company Nestle was planning to raise stake in its Indian arm to 75 % from 62.76 % at present. However, Nestle has clarified that there are no such negotiations going on and the company is not aware of any proposal of Nestle S.A. for increase of stake in Nestle India. Post the denial, the stock price of Nestle declined by over 4%.