Indices continue to trade weak

Wed, 3 Apr 01:30 pm

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Backed by persistent selling, Indian stock markets continued to trade in the red in the previous two trading hours. Barring stocks from the power and healthcare sectors, all other sectors are trading in the negative territory. Stocks from consumer durables and auto sector are witnessing highest selling pressure.

BSE-Sensex is down by 68 points and NSE-Nifty is trading down by 23 points. While BSE Mid Cap is trading up by 0.35%, BSE Small Cap index is trading up by 0.77%. The rupee is trading at 54.36 to the US dollar.

Most of the domestic pharma stocks are trading in the green with Elder Pharma and Natco Pharma being among the gainers. As per a leading daily, MNC pharma company Merck Sharp & Dohme (MSD) has filed a suit in the Delhi High Court against Glenmark for violating patents on MSD's diabetes drugs Januvia and Janumet. Glenmark has launched both the drugs in the Indian market, before the patent expiry of the said drugs. Patents allow innovator companies a 20-year exclusivity on manufacture and distribution and MSD had launched its products in 2008 in the Indian market. Reportedly, Glenmark has launched the drug in the Indian market at 30% discount than Merck's price. Both Merck's drugs are priced at about Rs 42 for a day's dose. While Januvia or sitagliptin phosphate is a once-a-day prescription, Janumet or Sitagliptin Metformin is taken twice a day. Sun Pharma is also selling the said drugs in the Indian market. However, the company has launched these drugs as per a deal with MSD. Glenmark's launch will not only impact MSD's market but might also eat into Sun Pharma's market share. The stock of Glenmark is trading down by 2%, while that of Sun is trading up by 2%.

Majority of the FMCG stocks are trading in the green with Dabur and Colgate among the major gainers. As per a leading financial daily, FMCG behemoth Hindustan Unilever (HUL) has launched its premium ice cream brand 'Magnum' in Chennai. The ice cream is priced at Rs 75 for a stick and has been launched in three flavours - Classic, Almond and Chocolate Truffle. As per the company, the brand is targeted at the youth population. HUL has chosen Chennai to be the first market for its launch due to its affluent consumer base that is open to new and different experiences. Magnum ice cream is currently available in Europe and across the US as well as Asian countries such as Thailand, Indonesia, Malaysia and Philippines. The company currently sells 1 bn units of Magnum annually. HUL stock is currently down 1.3%.