IT stocks lead markets higher

Fri, 3 Sep 09:30 am

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The Indian markets have started today's session on a positive note. The benchmark indices opened above the breakeven mark and have stayed in the positive territory. Other key Asian markets are in the green with Indonesia (up 0.8%) leading the pack of gainers. The US markets closed higher by 0.5% yesterday.

Currently in India, heavyweights from the BSE-Sensex are trading strong with software and FMCG majors attracting investors' interest. The BSE-Sensex is trading higher by around 49 points, while the NSE-Nifty is up by about 7 points. Buying interest is also being witnessed among mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are trading higher by 0.5% and 0.6% respectively. The rupee is trading at 46.76 to the US dollar.

Pharma stocks have opened the day on a strong note. Gainers here include Cipla and Panacea Biotech. As per a leading business daily, Cipla is looking to acquire around 25% in the manufacturing division of Cipla Medpro (CM), South Africa's third-largest drugmaker. It has been a key partner of the Indian company for close to 18 years. Cipla does not hold any stake in CM at present. CM, through a subsidiary, is setting up one of the largest contract manufacturing facilities in Africa at an investment of over Rs 1.5 bn. Cipla's acquisition will ring-fence CM from any hostile acquisition and help it get a better hold over African operations. It may be noted that Cipla exports around 35% of its production, mainly HIV-AIDS drugs, to Africa. Around 15% of its export revenues are through Cipla Medpro.

Power stocks have opened the day on a positive note. Gainers here include CESC and Tata Power. As per a leading business daily, a consortium of Tata Power, Australian energy major Orion Energy and PT Supraco Indonesia has bagged the Sorik Marapi geothermal project in the Northern Sumatra region of Indonesia. Tata Power and Origin Energy own 47.5% each in the consortium. It will develop around 240 megawatts (MW) of geothermal generation capacity. The consortium will conduct detailed exploration over the next 18 months and the expected commercial operation date for the project is June 2015. Geothermal energy is a non-conventional energy source derived from the earth's intense heat. Indonesia is situated on the Pacific 'Ring of Fire' and is estimated to have around 27,000 MW of geothermal resources, one of the largest in the world. It already has 1,196 MW geothermal generation in operation.