Despite opening on a higher note, the Indian stock markets remained flat during the previous two hours of trading session. Among the sectors, IT and realty stocks are leading the pack of gainers, while energy stocks are witnessing selling pressures.
The BSE-Sensex is trading up by 5 points and the NSE-Nifty is trading down by 2 points. The BSE Mid Cap index is trading up 0.1% and the BSE Small Cap index is trading up 0.2% today. The rupee is trading at 60.12 to the US dollar.
Capital Goods stocks are trading mixed. Emco and Punj Lloyd are leading the stock of gainers, while Shanthi Gears is trading on a weak note. As per a leading business daily, the state owned capital goods firm Engineers India Ltd. has bagged its largest ever single consultancy contract for a 20 m tonne oil refinery from a Nigerian firm. The contract worth USD 139 m is from Dangote Oil Refinery Company for providing services for its refinery and polypropylene plant in Lekki Free Trade Zone near Lagos, Nigeria. Engineers India will undertake project management consultancy and engineering, procurement and construction work for a petroleum refinery and polypropylene plant. The company's muted order book over past 2 to 3 years had impacted the sales growth. In fact the company's FY14 turnover at Rs 18.2 bn was lowest in the last 5 years. However, the latest contract is expected to provide some respite in terms of growth in the near future. The stock is trading higher by 2.4% today.
MNC Pharma stocks are trading mixed today. While Novartis India is leading the stock of gainers, Fulford India is trailing weak. Novartis India plans to focus on new product launches and domestic growth going forward. The company is reinforcing its strategy in the Indian market for the multi-national players despite the regulatory challenges after it lost the patent battle with Glivec last year. The company during the previous year launched 3 successful patented drugs and more than 12 generic drugs which helped expand the company's presence in India. The company's parent recently acquired the UK drug maker Glaxo SmithKline and is floating a joint venture to sell over-the-counter drug. It is also expected to launch few GSK's products in India. The company is optimistic about India's demographic advantage; however it remains skeptical about the pricing pressures that domestic pharma companies are facing.