The Indian stock markets continue to remain volatile after a strong start. Healthcare and realty were leading the market while IT and telecom were trading under the dotted line on account of profit booking.
The BSE Sensex and NSE Nifty were trading in the green, albeit marginally higher. BSE Sensex was higher by 15 points while NSE Nifty was higher by 3 points. The BSE Midcap index was trading higher by 46 points while the BSE Smallcap index was trading up by 60 points. The rupee is trading at 46.15 to the dollar.
As per a leading daily, Ashok Leyland has indicated that it will hike the price of its commercial vehicles shortly. The company has cited rising steel prices, change in technology due to new emission norms and fixed price contracts with local transport bodies as some of the reasons for this hike. The quantum of this hike is expected to be around 2 - 3% across categories and is expected to happen around March. Ashok Leyland has witnessed good sales numbers in the last 2 quarters and expects to close the year with total sale of 62,000 - 63,000 units. The company expects good growth going forward despite this hike and is aiming for a double digit growth next fiscal.
Dr. Reddy was up by 3.3% at the time of writing this report. The company has pulled a first for an Indian company. Indian drug industry’s dream of coming out with its own new chemical entity (NCE) or an originally researched drug received a boost with Balaglitazone showing encouraging results in the first leg of human trials. This is an anti-diabetic drug being developed by Dr. Reddy jointly with Denmark-based Rheoscience. The companies intend to present their findings to regulators in developed markets and will take a call based on their feedback on their course of further action. Phase 3 trials are expensive as a large number of patients are involved in this. Since there is a chance of failure even at this stage, investors are advised to exercise caution.