Indian stock markets continued to trade in the red led by selling activity in index heavy weights. Stocks from metals and banking sectors are the major losers. However, mid cap and small cap stocks are trading in the green.
The BSE Sensex is trading lower by 123 points and the NSE-Nifty is trading lower by 30 points. However, the BSE Mid Cap index is trading higher by 0.2% and the BSE Small Cap index is trading higher by 0.5%. The rupee is trading at 60.5 to the US dollar.
Indian pharma stocks are trading mixed today. While Wockhardt and Torrent Pharma are trading higher, Cipla and Panacea are trading on a weak note. Drug maker Cipla faces fresh set of penalty from NPPA (National Pharmaceutical Pricing Authority) of about Rs 1 bn. NPPA is government based Indian drug pricing regulator. The charge is for allegedly selling Cipro injection and Ciplox in the market at a price higher than that fixed by the regulator. Ciplox and Cipro are brands that are based on ciprofloxacin formulation. The formulation is an antibiotic belonging to the quinolone family of medicines that is used for treating infections caused by certain bacteria. It may be noted that the company earlier received similar set of penalty amounting to Rs 17 bn against which the decision is still pending.
Majority of automobile stocks are trading on a weak note today. Bajaj Auto and Maruti are leading the stocks of losers, while TVS is trading higher. Tata Motors plans hiring spree in order to boost up its sales and marketing effort ahead of its two major launches. The company plans to hire about 3,000 to 3,500 sales force The company plans to launch Bolt hatchback and Zest sedan brands of cars. It plans to revive the marketing effort in order to recoup its lost market shares in cars. It would also flag off its largest automobile road show in 2400 towns over the next six months. This is the company's major drive to change its brand perception among its consumers. Tata Motors is trading lower by 0.9% today.