After starting today's session on a positive note, Indian markets have lost ground and are trading in the red currently. Currently, heavyweights from the Sensex are trading weak with stocks from FMCG and auto space witnessing selling pressure. However, stocks from the IT and consumer durables space are trading with marginal gains.
Currently, the BSE-Sensex is trading down by around 60 points, while the NSE-Nifty is down by about 20 points. Selling pressure is also seen among the mid and small cap stocks, with the BSE-Midcap and BSE-Smallcap indices trading lower by 0.4% and 0.2% respectively.
Engineering stocks are trading mixed with TRF and Atlas Copco leading the gains. However, Punj Llyod and L&T are trading weak. Engineering major BHEL is considering a possibility to float a non-banking finance company (NBFC) to finance power projects. It has already appointed a consulting company to study the business model. Although at present, the planned NBFC will focus predominantly on power projects, the company is also keen on providing funding into other areas like equipment financing. It may be noted that right now there are only two niche power finance institutions in India - PFC and REC. Thus setting up a new financial arm will provide enough opportunities to BHEL.
Pharma stopcks are trading weak with Cipla and Dishman Pharma leading the pack of losers. However, Sun Pharma and Glenmark Pharma are trading flat. Dr. Reddy's has entered into a research partnership with UK based contract research organization Argenta. Argenta will use its drug discovery platform and expertise to find out potential new drug targets for Dr. Reddy's in the area of pain and inflammation. The financial implications of the deal are not available as yet. However, it may be noted that four years ago Dr. Reddy's had entered into a similar agreement with Argenta in the area of respiratory treatment and that research tie up has been progressing well.