Majority of the hotel stocks are trading in green with Hotel Leelaventure and Indian Hotels being the biggest gainers. However, Oriental Hotels and EIH Ltd are trading in the red. According to a leading financial daily, the Reserve Bank of India (RBI) has permitted domestic hotel companies to tap external commercial borrowings (ECB) for their funding requirements. The ECB route can be resorted to by hotel companies in case of project size of at least Rs 2.5 bn and in any geographical location. The ECBs can be availed by companies either to repay outstanding rupee loans or for fresh rupee capital expenditure. As per existing guidelines, only companies operating in manufacturing and infrastructure sectors and with significant foreign exchange earnings were allowed to take ECBs. In September 2012, RBI had raised the maximum permissible ECB limit from 50% to 75% of average foreign exchange earnings in the past three years with the maximum ceiling fixed at US$ 3 bn.
Pharma stocks are trading mixed with Sun Pharma and Jubilant Lifescience being among the leading gainers and Dishman Pharma and Panacea Biotech being among the top underperformers. Lupin Ltd received approval for one more oral contraceptive drug, Lovonogrestel and Ethinyl Estradiol usp 0.mg/0.02mg from USFDA. The said approval is the generic version of Watson's drug Lutera 28 Tablets. The brand size of this drug is US$ 103 m. The company will soon launch the drug in the US. Lupin already holds six approvals in the oral contraceptive space and targets to widen the oral contraceptive portfolio by making similar launches in the future. The stock was trading down by 0.6%.