All sectoral indices in red

Mon, 3 Oct 01:30 pm

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The Indian stock market continued to trade weak during the last two hours of trade on account of selling pressure in index heavyweights. All sectoral indices are trading in the red. Stocks from the realty, metal, banking and capital goods space are leading the pack of losers.

The BSE-Sensex is trading down by 313 points while NSE-Nifty is trading 96 points below yesterday's closing. The BSE Mid Cap and BSE Small Cap indices are trading down by 1.8% and 1.4% respectively. The rupee is trading at 49.29 to the US dollar.

Telecom stocks have been trading mixed with Reliance Communications and ADC India Communications leading the pack of gainers. However, AGC Networks, ITI Ltd and Tata Teleservices (Maharashtra) are trading weak. As per a leading financial daily, Bharti Airtel has awarded BWA rollout contact to ZTE Corporation for Kolkata regions. ZTE Corporation is the second largest telecom equipments and systems company. During last year auction, Bharti Airtel has got BWA licenses for four regions - Maharashtra, Kolkata, Karnataka and Punjab. Sunil Mittal, chairman and managing director of the company, has recently discussed the implementation plan of BWA rollout with the management of ZTE. As of now, the contact is going to be awarded only for Kolkata regions. But ZTE is hopeful to get the contracts for other regions as well later.

This fourth generation networks or 4G are supposed to be providing data speed at least four times faster than the 3G. However, according to experts, poor backhaul infrastructure would be a great hindrance in the adoption of 4G.

Consumer products stocks have been trading mixed with Gillette India, Procter and Gamble Hygiene (P&G Hygiene) and Health Care and Dabur India Ltd leading the pack of gainers. However, Henkel India and Camlin Ltd are trading weak. As per a leading financial daily, Dabur India Ltd has announced its entry into Sri Lanka with the setting up of an overseas subsidiary - Dabur Lanka (Pvt.) Ltd. It has signed an agreement with the Board of Investment of Sri Lanka for the venture to invest US$ 15 m to establish a new export-oriented manufacturing facility. The manufacturing facility, with a capacity to produce 8 lakh cases of fruit-based beverages every month in Gampaha, north of Colombo -- will be commissioned in August-September of 2012. As per the company management, the demand for its fruit-based juices & beverages under the Real brand has been reporting strong growth month-on-month and it expects it to continue. Its food business had reported an over 28% growth in 2010-11 despite the supply constraints. The plant will employ around 75 people once operational which are expected to grow to 200 employees by 2013-14. The company is planning to invest Rs 1,250 m in three year in Sri Lanka.