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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
Indian indices continued to trade in the positive on buying interest in heavy weights over the last two hours of trade. Stocks from the banking and auto space are trading firm, while those from the consumer goods and metal space are trading weak.
The BSE-Sensex is up by 148 points while NSE-Nifty is trading 38 points above the dotted line. BSE Midcap index is up by 0.6% while BSE Small cap index is trading 0.7% above yesterday's closing. The rupee is trading at 44.95 to the US dollar.
FMCG stocks are trading firm led by Henkel and Godrej Consumer Products. As per a leading financial daily, Marico's production in Egypt factories has come down by 70% in the last month as a result of the unrest prevailing in Middle East. Marico has two plants in Egypt which act as a supply chain hub to the company's Middle East operations. The biggest revenue generator for the company in this region is its hair care brands, the sales for which stand at Rs 2 bn. The company has invested heavily in this region in the past. It may be noted that, in 2006, Marico had bought over an Egyptian hair care brand, Fiancee. However, in February this year, the company had to shut its plants in Egypt when the unrest swept through Egypt, Libya, Bahrain and Yemen. Egypt accounts for about 7% of the company's total business which the management feels will be impacted for only a quarter. However, if the unrest spreads to bigger countries like Saudi Arabia, it may become a major concern. Marico is affected more than any other FMCG company by the Egypt crisis as other companies use Egypt only for their operations while it is a manufacturing base for Marico.
New acquisitions have been contributing substantially to Marico's sales recently. In fact, the company has been scouting for new global targets. But post the Egyptian crisis, the company would be conducting a strict due diligence with regards to political stability of the new markets it enters.
IPHARMAHealthcare stocks are trading mixed with Aurobindo Pharma and Sun Pharma trading firm while Jubilant Life and Ranbaxy are trading weak. As per a leading financial daily, Glenmark Pharma's US based subsidiary, Glenmark Generics Inc., USA (GGI), has announced that it has received the final approval for its Abbreviated New Drug Application (ANDA) from the United States Food and Drug Administration (US FDA) for ‘Levocetirizine Dihydrochloride' 5 mg tablets. This is the generic version of UCB Inc.'s Xyzal(R) tablets. It may be noted that sales in US of ‘Levocetirizine Dihydrochloride' for CY10 stood at US$ 231 m. Glenmark's ‘Levocetirizine Dihydrochloride' tablets are currently available and shipping will commence immediately from the company's New Jersey facility.
GGI' current portfolio consists of 69 generic products authorized for distribution in the US market and approximately 40 ANDAs filed with the US FDA pending approval. In addition to these internal filings, GGI continues to identify and explore external development partnerships to supplement and accelerate the growth of the existing pipeline and portfolio in the highly competitive US generics market.
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