Backed by persistent selling activity Indian equity markets continued to trade in the red during the post noon trading session. Barring stocks from consumer durables, all the sectoral indices are trading in the red with Auto and PSU stocks leading the pack of losers.
Most of the Indian pharma stocks are trading in the red with Aaurobindo Pharma and Dishman being among the major losers. As per a leading financial daily, Sun Pharmaceuticals has sued Novartis in the US court, in order to launch Novartis' brand Gleevec (Imatinib Mesylate active ingredient of Gleevec) before patent expiry. The complaint filed by Sun challenges validity of patent expiring in 2019. Sun Pharma had informed Novartis about its Para IV filed for Gleevec for 2016 patents, at this time 2019 patent was not listed. Reportedly, Novartis did not sue Sun Pharma in the required time frame of 45-days. Sun is believed to be the FTF (first to file) for this drug. Gleevec contributes approximately US$ 4.7 bn to Novartis' revenues. Sun Pharma was trading down by 3%.
Most of the FMCG stocks are trading in the red with Colgate and Godrej Consumer being among the major losers. As per a leading financial daily, Hindustan Unilever (HUL) will enter the hair colour segment through its new brand TIGI. Apart from that, the company will also be launching other TIGI products such as gel, shampoo, wax and mousse under Bead Head and S-Factor brands. Unilever acquired TIGI's professional hair products business in 2009. Reportedly TIGI's products fall in the super premium category which are more expensive than existing premium brands such as Dove, Wella and Scwarzkopf. To begin with, HUL plans to sell TIGI's products through just over 40 salons in the country. HUL stock is trading marginally down.