Indian stock markets pared their opening gains on profit booking in heavy weights and traded in the red over the last two hours of trade. Stocks from the realty and auto space are trading weak while stocks from the FMCG and capital goods space are trading firm.
The BSE-Sensex is down by 55 points while NSE-Nifty is trading 23 points below the dotted line. BSE Midcap index is down by 0.5% while BSE Small cap index is trading 0.6% below yesterday's closing. The rupee is trading at 44.06 to the US dollar.
Pharma stocks are trading mixed with Ranbaxy and Cadila Health trading firm, while Opto Circuits and Aurobindo Pharma are trading weak. As per a leading financial daily, Cadila Healthcare has received USFDA approval for clinical trials for its new molecule ZYGK1. This molecule would be used to treat diabetes. Cadila is expected to initiate the phase 1 clinical trials of this molecule shortly. This would involve testing the efficacy and side effects of the molecules on a limited human sample. It may be noted that ZYGK1 is an investigational new drug application. It is administered orally and acts as a glucose sensor in pancreas, thereby helping to regulate glucose metabolism in the liver.
As per the company's spokesperson, Cadila has been building a pipeline of new molecules which would focus on metabolic disorders and cardiovascular diseases. Cadila's sales have increased from US$ 400 m in 2007 to US$ 1 bn in 2010-11 making it the fifth largest pharma company in the country.
Engineering stocks are trading mixed with Finolex Cables and Suzlon Energy leading the gains. However, Everest Kanto and Bharat Bijlee are on the losing end. As per a leading financial daily, wind turbine manufacturers are planning to expand operations in India. The global companies want to either set up new facilities or install wind turbines of larger capacity to tap the growing demand in the country. Siemens is planning to set up a plant near Vadodara in Gujarat to manufacture wind turbines. The production at the plant which will manufacture 2.3 megawatt turbines is expected to start by 2013.
It may be noted that this expansion is due to aggressive growth expected in the wind energy markets. In fact, the wind energy industry is expecting an addition of 50,000 megawatt of wind energy in the next decade. However, the management of Suzlon Energy feels only 30,000 megawatt will be added. This is because there are concerns regarding execution and grid infrastructure which they feel will result in lower generation of wind power. At an ongoing industry event, Suzlon launched a new platform of 2.1 megawatt wind turbines. These turbines would tap moderate to low wind speeds and their larger swept area will lead to greater energy capture. These new turbines will fulfill an order of US$ 1.2 bn from UK based Caparo Energy.