Weakness in the Indian markets continued during the last 2 hours of trade with major indices trading in the red. While buying interest was seen in the IT and the consumer durable space, stocks in the oil & gas, banking and auto space weighed down the indices.
BSE-Sensex is trading lower by 32 points while NSE-Nifty is trading 15 points below the dotted line. BSE-Midcap Index is down by 0.12% while the BSE-Smallcap index is trading 0.27% above yesterday’s closing. The rupee is trading at 44.54 to the US dollar
As per a leading financial daily, Glenmark Pharmaceuticals and GlaxoSmithKline (GSK) have entered into an out of court settlement over the launch of a generic version of Malarone, an anti-malaria drug brand. Under the terms of settlement, Glenmark will be able to sell its generic tablets by paying a royalty to GSK from 2QFY11. Under this settlement, Glenmark will get an exclusivity of sale in the US market for 180 days upon the patent expiry. However, benefit for the company will be limited as the drug generated only US$ 56 m in sales in CY2009. Glenmark registered sales of approximately US$ 170 m in FY2009. In the best case scenario this drug would yield about US$ 11 - 12 m in sales, adding about 5% to the company’s topline on an annualized basis.
As per a business daily, Corporation Bank is planning to raise Rs 20 bn in FY11 to meet incremental credit growth requirements. This amount would be raised via a combination of Tier-I and Tier-II capital. The bank has estimated that it would require Rs 50 bn over the next 2 years to fuel its balance sheet growth. For the balance Rs 30 bn, the bank is considering tapping the equity market via a rights issue or a follow-on public offer. The bank is targeting a loan growth of 25% during FY11 with a net interest margin in the range of 2.5% to 2.6%. The credit growth is seen coming from real estate, infrastructure, retail and SME segments. With this capital, the bank's capital adequacy ratio will improve and the bank will have adequate cash to lend when the demand for credit picks up.