In the post noon session, the Indian indices have drifted into the red. There is broad based selling on the bourses. Apart from the FMCG index all other sectoral indices are trading below the dotted line.
The BSE-Sensex is trading down 170 points and the NSE-Nifty is trading down 52 points. The BSE Mid Cap index is trading down 1.1% and the BSE Small Cap index is trading down 0.9%. The rupee is trading at 60.26 to the US dollar.
Most of the domestic pharma stocks are trading in the red with Orchid Chemicals and Dishman Pharma being the biggest losers whereas Panacea Biotech and Piramal Enterprises are among the few stocks trading in the green. As per a leading financial daily, Cadila Healthcare and its US-based subsidiary Zydus Pharmaceuticals have entered into agreement with Depomed Inc. for the settlement of a patent infringement litigation. The ongoing litigation is related to a neuropathic drug Gralsie (gabapentin) tablets in 300 mg and 600 mg strengths. As per the settlement reached, Cadila and Zydus have secured permits to sell the generic versions of Gralise on January 1st 2024 or earlier subject to certain circumstances. Reportedly, Depomed clocked sales of $36.2 m in 2013 for Gralise. Cadila and Zydus Pharmaceuticals had settled a patent dispute related to Asacol delayed-release tablets in December 2013. Cadila Healthcare stock is presently trading up marginally.
Telecom stocks are trading lower today. Mahanagar Telephone Nigam Ltd (MTNL) and Tata Teleservices are leading the losses. India's newest telecom firm Reliance Jio Infocomm has signed its third infrastructure sharing agreement with Reliance Communications. The agreement will allow the company to use Reliance Communication's pan-India inter-city fiber optic network. This will enable a faster roll out of its 4G services across the country. The company has planned the roll out in September this year. The agreement is based on arm's length pricing at prevailing market rates. RCOM has about 500,000 Kms of fiber-optic cable network connecting over 300 cities in India. The earlier two agreements between the two companies were signed in April and August last year.