Asian stocks are higher today as Chinese and Hong Kong shares show gains. The Shanghai Composite is up 1.04% while the Hang Seng is up 1.28%. The Nikkei 225 is trading up by 3.06%. Overnight, the US stocks closed higher after volatile trade. S&P 500 at 2,695 points is up 1.7%.
Back home, India share markets opened on a strong note tracking global markets. Indian indices managed to recoup more than half its losses as investors resorted to value buying following a sharp three-day correction. Besides global cues, market participants will also look forward to the outcome of the Reserve Bank of India’s monetary policy review today.
The BSE Sensex is trading higher by 247 points while the NSE Nifty is trading higher by 78 points. The BSE Mid Cap index and BSE Small Cap index opened the day up by 1.5% & 2.2% respectively.
All sectoral indices have opened the day in green with consumer durables stocks and realty stocks witnessing maximum buying interest. The rupee is trading at 64.27 to the US$.
Telecom stocks opened the day on a mixed note with Himachal Futuristic & Tata Communications leading the gainers. As per an article in a leading financial daily, UK’s Vodafone is in the final stages of talks to sell its entire 42% stake in Indus Towers for about US$5 billion, raising Bharti Infratel’s holding in the company to 84% through a share-swap deal.
Reportedly, Vodafone’s stake is pegged at around US$5 billion. However, the final number will be an outcome of the impact of tower cancellations that will arise once the different telcos consolidate the overlapping tenancies.
Cancellation of tower rentals will significantly hurt operating profits of Indus Towers, which in turn could depress valuations, the reports noted.
Bharti Infratel, a subsidiary of Bharti Airtel owns 42% in the Indus Towers joint venture. While Idea Cellular has a 16% share in it. The residual 42% is held by the UK-based telco.
The no-cash transaction, involving a share swap, will see Vodafone getting a smaller pie of the combined Bharti Infratel.
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