Asian share markets are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 0.3% while the Hang Seng is up 0.3%. The Shanghai Composite is trading up by 0.4%. Overnight, US stocks closed higher, with S&P 500 gaining 0.1% to 2,782.
Back home, India share markets opened the day marginally higher. The BSE Sensex is trading up by 75 points while the NSE Nifty is trading up by 16 points. The BSE Mid Cap index and BSE Small Cap index both opened up by 0.2%.
Barring metal stocks, all sectoral indices have opened the day in green with consumer durables stocks and energy stocks witnessing maximum buying interest. The rupee is trading at 67.33 to the US$.
Telecom stocks opened the day on a mixed note with ITI Ltd & AGC Network leading the gainers. As per an article in a leading financial daily, Bharti Airtel has chalked out expansion plans to install 12,000 new mobile towers in Tamil Nadu during the current fiscal.
Under its network transformation programme 'Project Leap,' Bharti Airtel plans to add 12,000 new mobile towers to enhance network capacity and reach out to larger audience.
With this planned roll out, the number of Airtel's mobile sites (towers) across Tamil Nadu will go up by 30% to 52,000 and add network experience for customers, the company stated.
On its plans to expand broadband, the company said it plans for 3,000 kms of fresh optic fibre cable across the State taking the fiber footprint to 17,000 kms.
Further, the addition of fresh fiber capacity will support the growth of high speed data services.
The company claimed that it was the number one mobile operator and was the first to launch 4G services in the State.
Note that, Bharti Airtel has 23 million customers in Tamil Nadu.
Meanwhile, Bharti Airtel, has been the victim of loss of pricing power in the sector. It has been one of the biggest and most resilient telecom companies in India.
Bharti Airtel's Sliding Valuations
Sliding operating margins had a direct impact on the company's return on equity over the past decade. And the poor operating numbers apart from debt heavy balance sheet weighed on the valuations.
To know more about the company, you can access to Bharti Airtel's latest result analysis and Bharti Airtel analysison our website.
Bharti Airtel share price opened the day up by 0.9%.
Moving on to the news from the pharma sector. As per an article in a leading financial daily, Strides Shasun's subsidiary Strides Pharma Global Pte has received final approval from the US Food and Drug Administration (USFDA) for generic Oseltamivir Phosphate capsules.
The company has received approval from the US health regulator for the capsules in the strengths of 30 mg (base), 45 mg (base) and 75 mg (base).
Reportedly, the product is a generic version of Hoffmann-La Roche Inc's Tamiflu capsules.
As per IQVIA MAT April 2018 data, the US market for Oseltamivir Phosphate Capsules was approximately US$ 725 million.
The product will be manufactured at the company's oral dosage facility at Bengaluru and will be marketed by Strides Pharma Inc in the US market.
Oseltamivir Phosphate capsule is prescribed to treat symptoms caused by the flu virus.
Speaking of pharma sector, did you know the BSE Healthcare Index is down 20% over the past three years? During the same period, the BSE Sensex is up 21%.
And this was a sector they called 'evergreen'.
Have Investors boarded a plane that's about to crash? Or is it just turbulence on the way to a smooth and safe landing?
It's important to understand the core issues. Regulatory problems for pharma companies have increased over the past few years. The frequency of visits as well as quality expectations have increased a lot.
While we expect the pain to continue in the short-term, the long-term picture still looks bright.
Stricter norms and pricing pressure will ensure only quality players remain. Companies with strong R&D facilities and quality compliant plants will have an edge over the others.
Strides Shasun share price opened the day up by 4.4%.
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This article was originally published in English at www.equitymaster.com
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