Indian markets continued to scale higher on the back of continuous buying activity among the index heavyweights during the previous two hours of trade. Stocks from the consumer durables and realty space are leading the gainers, while software stocks are trading weak.
The BSE-Sensex is trading up by 205 points and the NSE-Nifty is trading up by 57 points. The BSE Mid Cap index is trading up 2.4% and the BSE Small Cap index is trading up 2.5% today. The rupee is trading at 58.57 to the US dollar.
Indian pharma stocks are trading mixed. Orchid Chemicals and IPCA Labs are trading firm, while Dishman Pharma is trading lower. As per a leading business daily, Sun Pharma has received a warning letter from the USFDA. According to the US drug regulator, the company's initial response on tackling data integrity violation lacks sufficient corrective actions. It may be noted that the regulator has sent an import alert to Sun Pharma's Karkhadi plant in Gujarat for deviation from good manufacturing practices (GMP) norms in manufacturing of APIs (active pharmaceutical ingredients) that go in to the making of medicines. The company is expected to respond to the matter in due course. Notably, Karkhadi plant's contribution to the company's total sales is negligible. However, till the issue is rectified, the regulator is expected to withhold new applications for the US market from this plant. The move comes at a time when Sun Pharma is seeking to merge the troubled drug maker Ranbaxy with itself.
Retailing stocks are trading mixed today. While Provogue and Zodiac Clothing are trading firm, Shopper's Stop is trading weak. As per a financial daily, Titan's youth fashion brand, Fastrack has shelved its plans to expand into newer segments like footwear and apparels. Footwear category has become competitive as several brands have entered into the space of late. Apart from international brands, some apparel makers have also ventured into the footwear category. Not to mention E-commerce that has further added to the competition. The scenario is no different for the apparels segment, which has also become crowded. The company wants to venture into areas where there is relatively less brand presence so as to increase presence and growth. In the previous year, it had entered into helmets where there are fewer brands. This year it instead plans to increase its range of watches and focus on retail. Fastrack plans to add 74 new stores this fiscal taking its strength to 220. Titan is trading up 7% today.