Indian share markets pared early gains but continued to trade positive in the post-noon trading session. Sectoral indices are trading mixed with IT and pharma stocks being the major gainers whereas metal and realty stocks are among the major losers.
Barring MOIL Ltd, all the mining stocks are trading in the red with Coal India and NMDC among major losers. As per a leading financial daily, Coal India Ltd (CIL) has still not signed fuel supply agreements (FSA) with 12 power units for a capacity of 4,925 MW. The company has missed two deadlines, one in August 2013 and the second one in September 2013, for signing of FSA with power producers and after almost a year of Presidential directive for signing of pacts for a capacity of 78,000 MW. CIL has signed FSA's for a capacity of 73,075 MW. According to the coal and power ministry, the pacts for 4,925 MW were not signed due to date issues including extension of coal supplies beyond the period admissible under short term linkage policy, Short term linkage policy is provided to consumers who have been allocated captive coal blocks but could not be developed on time.
Pharma stocks are trading on a mixed note. While Panacea Biotech and Ranbaxy are leading the pack of gainers, Natco Pharma is trading weak. As per a leading business daily, US Food and Drug Administration (USFDA) has approved Ranbaxy's generic version of Novartis AG's blood pressure drug Diovan. This comes after the company's protracted dispute with USFDA over regulatory issue with respect to good manufacturing practices. The company will finally launch the generic version of the drug which enjoys the exclusivity period of 180 days of marketing in the US market. This launch was pending since September 2012 with US FDA and Ranbaxy will launch the drug without any delay to monetize it. Reportedly, Ranbaxy could earn about US$ 200 m from the drug sales during the 6 month exclusivity period. This approval is likely to clear the negativity surrounding the company with respect to its future launches and restoration of the three formulation facilities that are banned by USFDA currently. Ranbaxy is trading up 5.4% today.