Indian share markets remain volatile

Thu, 17 Oct 01:30 pm

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Indian share markets made a marginal recovery and remained slightly above the dotted line in the post-noon trading session. Sectoral indices are trading mixed with oil and gas, FMCG and consumer durables stocks being the biggest gainers. However, IT, capital goods and auto stocks are among the leading losers.

BSE-Sensex is up 11 points and NSE-Nifty is trading marginally down. BSE Mid Cap is trading up 0.6% and BSE Mid Cap index is trading up 0.3%. The rupee is trading at 61.3 to the US dollar.

Majority of the telecom stocks are trading in the red with Tata Tele and ITI Ltd among the biggest losers. Bhart Airtel and AGC Networks are among the few stocks trading in the green. As per a leading financial daily, the Department of Telecommunication (DoT) committee has recommended imposition of a penalty of Rs 6 bn on Idea Cellular for violation of licence norms in six telecom circles. However, the committee has given a green signal to the company for the merger of licences in Karnataka and Punjab circles. Idea Cellular acquired 41.09% stake in Spice Communications in 2008 and merged it with itself in 2010 resulting in overlapping of licences in six circles. Reportedly, both the companies had licences to operate in Andhra Pradesh, Delhi, Haryana, Maharashtra, Punjab & Karnataka at the time of the merger. As per rules, a telecom operator cannot hold more than 10% stake in another operator in the same circle. As per the committee, Idea was holding 12 licences from March 2010 to February 2013 without DoT approval. Therefore the committee has recommended a maximum penalty of Rs 500 m on Idea Cellular and Spice Communications separately for each of the six service areas translating in total penalty of Rs 6 bn. Idea Cellular stock is currently trading down by 0.7%.

Indian pharma stocks are trading mixed. Ranbaxy Laboratories and JB chemicals are among the leading gainers while, Dishman pharma and Piramal enterprises are the top losers. As per the financial daily, Zydus Cadila has entered into agreement for drug development and commercialization alliance with Germany based Pieris AG. This alliance is signed for a new therapeutic protein molecule branded Anticalin. The pact combines, pieris' drug discovery and Cadila's early development capabilities in biologics molecule. Reportedly, Zydus has expertise in biologics development, regulatory affairs and biologics manufacturing. As per the terms of agreement, Zydus will take the lead in advancing Anticalin drug in preclinical and clinical stage. Going forward, companies will share licensing revenues on mutually agreed upon terms. Zydus is trading down by 0.2%.