Indian share markets have continued on a firm note during the previous two hours of trade. IT and healthcare are leading the pack of winners while realty and auto are facing the maximum selling pressures.
Indian Pharma shares are trading on a mixed note with Dr. Reddy's and Sun Pharma leading the gains while Divis Laboratories and Wockhardt Ltd are leading the losses. According to a leading financial news daily, the Health Mininstry in India has decided to initiate a probe on Ranbaxy Laboratories following the company's legal trouble in the US. The Drugs Controller General of India (DCGI) has been ordered to examine all the dossiers and drug applications on the basis of which approvals were granted to Ranbaxy in the past, a ministry source in know of the developments said. The future course of action would be decided after DCGI's report, expected to come within a month. All the officials spoken to said Ranbaxy could face severe penalties under the Drugs and Cosmetics Act if it was found guilty of violation of any provision under Indian law. According to the health ministry source, the drug regulator will initially study the US court's order and the report of the US Food and Drug Administration (FDA) and examine the period under their review, primarily pre-2005 in the Indian context. Ranbaxy's share is trading down by 1.5%.
Auto shares are trading on a mixed note with Maharashtra Scooters and Tata Motors leading the gains while TVS Motors and Force Motors are leading the losses. According to a leading financial news medium, the country's largest car maker - Maruti Suzuki's Swift Dzire has emerged as the second-highest sold car in India after Alto. The entity has sold 19,446 units of the compact sedan in April. With the increase in demand for compact sedans, the company hopes that Dzire will maintain its speed in the days ahead. Dzire sales have increased dramatically after the company went for a full model revamp last year and launched a new sub-four-metre model in February. The smaller size has allowed Dzire to halve its tax outgo, making it eligible for a lower tax bracket of 12%, and consequently passing on the benefit to customers. Maruti's share is trading up by 0.4%.