Indian share markets open firm

Fri, 9 May 09:30 am

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The major Asian stock markets have opened the day on a mixed note with stock markets in Taiwan (down 0.4%) and Malaysia (down 0.1%) leading the losses. However, the stocks markets in Indonesia (up 0.2%) and Japan (up 0.3%) were leading the gains. The Indian share markets have opened the day on a positive note. Barring healthcare, all sectoral indices have opened in the green with stocks in power and consumer durables space leading the gains.

The Sensex today is up by around 130 points (0.6%), while the NSE-Nifty is up by about 33 points (0.5%). The midcap and smallcap stocks have also opened in the green with BSE Mid Cap and BSE Small Cap indices up by around 0.3% and 0.4% respectively. The rupee is currently trading at Rs 60.08 to the US dollar.

Indian Pharma stocks have opened mainly in the green with Dishman Pharma Ltd and Lupin Ltd leading the gains. However, Glenmark Pharma and Strides Arcolab were leading the losses. Glenmark Pharmaceuticals has reported results for the quarter ending March 2014. The company has reported a growth of 27.5% year on year (YoY) in the consolidated revenues during the quarter. As per the management, the year was marked by strong growth due to good performance across the key markets like the US, India and Europe; including its API business. However, the adjusted net profit during the quarter declined by 75% YoY. The net profit was down due to exceptional item on account of provision made by Glenmark Generics Inc towards claims of Abbott Laboratories. This pertained to a patent litigation in respect of "TARKA" (oral anti-hypertensive medication). The company's US business and European formulations business were up 16.7% YoY and 29.5% YoY respectively during the quarter. The rest of the world (RoW) and the active pharmaceutical ingredient business grew at 49.33% YoY and at 63.1% YoY respectively. The company's Indian business reported just 7.9% YoY growth.

Telecom stocks have opened the day mainly in the green with Idea Cellular Ltd and Himachal Futuristic Ltd leading the gains. As per a leading financial daily, Bharti Airtel Ltd plans to invest US$ 1 bn per annum on its African operations over the next few years. The company has operations in 17 African countries and has deployed 3G network in 14 of them. As per the management, the company will focus on existing operations across 17 countries rather than expanding to newer markets. The company had entered the African market in 2010 post acquisition Zain Telecom for about US$10.7 bn. The company has made a capex of US$635 m in Africa in FY14. In 4QFY14, Airtel Africa witnessed 2% YoY growth in the revenues and a net loss of US$ 124 m. The average revenue per user for Airtel in Africa was down 7 % YoY to US$5.5. The number of data customers in Africa increased by 53.5 % YoY to 22.3 million during the quarter. Currently, they represent 32.1% of the total customer base.