Indian markets trade in the red

Wed, 28 Oct 11:30 am

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   09:30 am   

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After opening the day on a weak note, the Indian Indices have continued to trade negatively. Sectoral indices are trading mixed with banking and pharma stocks leading the losers. However, consumer durables stocks are trading in the green.

The BSE-Sensex is trading lower 143 points (down 0.5%) and the NSE-Nifty is trading down 36 points (down 0.4%). The S&P BSE Midcap index is trading flat while the S&P BSE Smallcap index is trading up by 0.3%. The rupee is trading at 65.04 to the US$.

Automobile stocks are trading on a mixed note with Maharashtra Scooters leading the gains and TVS Motors leading the losses. As per a leading financial daily, Bajaj Auto has launched a family of cruiser bikes under the Avenger brand. This is to strengthen its position in the premium end of the two-wheeler market. The company believes that the new range of 220cc and 150cc bikes have the potential to help it expand market share in the premium segment by 8%-9%.

While Avenger was available in the market, the company felt it appealed to a select clientele. Therefore, it sold just 4,000 units a month. However, moving ahead, the company has changed its strategy and decided to offer a range at different price points, cubic capacities with a different look and feel.

Going by that, the company is aiming to replicate the success it achieved when it launched a new range of Pulsars. With that launch, its segment share in the sports bike category had increased to 39% from 35%.

The company in its results for the quarter ended September 2015 reported 57.9% increase in its net profit on a YoY basis. This was owing to a robust operating performance. However, revenues grew marginally by just 2% YoY. Flattish volumes and high competitive intensity hit the same. The scrip of Bajaj Auto is currently trading down by 0.4%.

Stocks in the telecom space are also trading mixed with Himachal Futuristic and AGC Networks leading the losses. According to an article in Economic Times, Bharti Airtel has sold its 700 towers in Burkina Faso to Eaton Towers. Under the agreement, Bharti Airtel has committed to a 10-year tenancy contract with Eaton Towers in four countries-Ghana, Uganda, Kenya and Burkina Faso.

With this, Bharti Airtel has sold over 9,000 telecom towers across eight countries in Africa. Of these, 2,500 towers in four countries have been sold to Eaton. So far, the company has raised about US$ 1.85 billion from tower sales in the continent.

This is a part of Bharti Airtel's strategy to sell all of its 15,000 towers in Africa and use the proceeds to cut back its huge debt. The same was around US$ 10.7 billion at the end of September. The debt has been dragging down its consolidated financials. The scrip of Bharti Airtel is trading up by 1.8%.