The BSE- Sensex is trading higher by 35 points and NSE- Nifty is trading up by 11 points. BSE Mid Cap and BSE Small Cap indices are trading higher by 0.6% and 0.8% respectively. The rupee is trading at 54.46 to the US dollar.
Indian Pharma stocks are trading strong led by Dr. Reddy's and Dishman Pharma. According to a leading daily, government is expected to implement the new drug price control order (DPCO) by March this year. This will replace the existing DPCO and determine the prices of more than 640 packs of essential medicines. It will spell out the rules for price fixation of medicines as per the new drug pricing policy which was recently approved. Following this new pricing policy, many pharma companies like Eli Lilly, Allergan and Alcon Lab had applied for increase in prices of their medicines. However, the same have not been considered as the pricing order is yet to get implemented.
Auto stocks are trading strong led by Tube Investments and TVS Motors. According to a leading financial daily, Bajaj Auto has posted its best ever December sales numbers. The company has reported a 13% increase in motorcycle sales and a 9% increase in three wheeler sales, when compared to the same period last year. Even the consolidated sales figure and exports figure is 13% and 5% higher. Typically December sees sluggish sales as most buyers postpone the purchase to the coming calendar year. However, for the nine month period ending December 2012, Bajaj Auto's motorcycle sales are 1% lower and its consolidated sales are 2% lower than 2011 due to falling sales of commercial vehicles. Hero Motocorp's two wheeler sales were up by a marginal 0.2% while TVS Motor saw a drop of 9.6% in December sales.