Indian equity markets have recovered some losses and are trading above the dotted line during the post noon trading session. Most noticeable upward movement is being noticed in the stocks from oil & gas and realty sector, however stocks from the IT and FMCG sectors are witnessing maximum selling pressure.
FMCG stocks are trading mixed with Jyothy Consumer and Emami being the major gainers and P&G Hygiene and Godrej Consumer Products (GCPL) being the biggest losers. As per a leading financial daily, GCPL is contemplating entering the salon business and is reportedly in talks with Mumbai-based hair dressing and salon chain b:blunt. However, the company wants to enter the salon business more in terms of the salon brand rather than a service offering. The company already has a niche hair styling global brand - Salon Selectives that it has added to its portfolio through the acquisition of UK based Keyline Brands in 2005. This brand competes with other salon brands such as L'Oreal and Schwarzkopf and has a line of hair care products ranging from shampoos, hair conditioners, mousses, sprays, gels and oils. The company is exploring the possibility of introducing the Salon Selective brand that recently became a part of the Keyline Brands portfolio.
Domestic pharma stocks are trading mixed with, Elder Pharma and Sun Pharma leading among gainers while Cadila Healthcare and JB Chemicals are the major losers. Cadila has recently announced that the company has achieved a significant milestone for Lipaglyn drug in its research and development pipeline. The said drug will be first NCE (new chemical entity) to reach Indian markets. This is the world's first drug for treating diabetic dyslipidemia. The drug combines lipid and glucose lowering effects in one single molecule. The drug has been approved for launch in India by DCGI (Drug Controller and General of India). Diabetic Dyslipidemia is a condition where a person is diabetic and has elevated levels of cholesterol. India has a population of approximately 65 m diabetics and 77 m pre-diabetics. Above 85% of patients suffer dylipidemia abnormalities. Cadila was trading down by 4%.