Backed by heavy selling across the indices, Indian stock market remained weak during the post noon trading session. All the sector, barring healthcare stocks are trading in red. The major losers are stocks in realty, FMCG and banking sectors.
Most of the Pharma stocks are trading in red with Dishman Pharma and Wockhardt Ltd being among the top losers. Glenmark Phrama announced that it has initiated with new research program of a novel clinical development candidate GBR 830. GBR 830 has been discovered and developed by the Glenmark biologics research centre located in La Chaux-de-Fonds, Switzerland. GBR 830 is an anti-OX40 monoclonal antibody. OX40 plays a central role in the development of multiple inflammatory and autoimmune diseases. The development of OX40 antagonists is challenging and thus successful development of GBR 830 will potentially be First-in-class molecule to address the disease. Glenmark has achieved a significant milestone with the successful generation of an antagonistic OX40 monoclonal antibody along with data confirming the role of OX40 in autoimmune diseases. Reportedly, GBR 830 might prove to be an important therapeutic option to treat patients suffering diseases like Rheumatoid Arthritis (RA) and Inflammatory Bowel Disease (IBD). With the addition of GBR 830 to its research pipeline, the company will now have three monoclonal antibodies in the Novel Biologics Entity (NBE) pipeline. The stock was trading up by 0.14%.
Automobile stocks are trading mixed with Escorts being the biggest gainer. However, Maharashra Scooters and Tata Motors are among the leading losers. As per a leading financial daily, sales of medium and heavy (M&H) trucks continued to fall for the 11th consecutive month in January. Factors such as stagnant freight rates and high cost of borrowings prevented fleet operators from making new purchases resulting in a 38% YoY erosion in the sales of M&H trucks for the month. Tata Motors saw its M&H truck sales nosedive by 52% in January to a four-year low of 8,722 units. Ashok Leyland reported a 25% drop in M&H truck sales to 6863 units, whereas Eicher Motors clocked flat growth for the month. To prevent inventory pile-up, manufacturers have started slashing production. Tata Motors has announced plant shutdown at is Jamshedpur factory for the fourth time in FY13. Ashok Leyland has moved to a five-day week at some plants while Eicher Motors has moved to a single-shift operations on some days at its factory in Madhya Pradesh. Manufacturers and dealers have started offering freebies such as double warranty and huge interest subvention. The Society of Indian Automobile Manufacturers (SIAM) has demanded fleet modernization and higher depreciation rate of 60% for commercial vehicles from National Manufacturing Competitive Council.