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After opening the trading day on a positive note, the Indian Indices continued the uptrend during the post-noon trading session. Most of these gains were seen on the back of firm global cues. Sectoral indices witnessed healthy buying interest with stocks from the capital goods and FMCG leading the gains.
The BSE Sensex is trading higher by 210 points (up 0.8%) and the NSE Nifty is trading up by 62 points (up 0.7%). The BSE Mid Cap index is trading higher by 1.3% while the BSE Small Cap index is trading higher by 0.9%. Gold prices, per 10 grams, are trading at Rs 31,535 levels. Silver price, per kilogram, is trading at Rs 45,061 levels. Crude oil is trading at Rs 3,271 per barrel. The rupee is trading at 67.41 to the US$.
Stocks in the auto sector are trading on a mixed note with Escorts and M&M trading in the green. As per an article in a leading financial daily, Maruti Suzuki's June sales have dropped 13.9% YoY to 98,840 units.
As per the article, owing to the unfortunate instance of fire at Subros, it faced disruption in production during the month. The company had a maintenance shutdown at both its plants from June 6 to June 11. The production loss was estimated at 5,000 units.
The company's sales in the domestic market stood at 92,133 units against 102,626 units in same month last year. Export volumes fell from 12,130 units to 6,707 units. In the domestic market, all segments of vehicles barring utility vehicles saw a decline in sales.
The company said sales of the compact segment comprising Swift, Estilo, Ritz, Dzire and Baleno too slid 12.5% to 39,971 units in June as against 45,701 units a year ago. However, the company anticipates to pull through the production loss (Subscription Required) during the course of the year.
One of our premium editions of The 5 Minute WrapUp offers bits on the performance of Maruti Suzuki (subscription required).
In another development, Maruti Suzuki recently signed a Memorandum of Understanding (MoU) with Government of Andhra Pradesh, to set up, manage and run Institute of Driving Training and Traffic Research. Furthermore, it stated that it will advise Government for research on matters related to road safety to facilitate improvement in the transport system in the state.
Maruti Suzuki India Ltd was trading down by 0.4% at the time of writing.
Moving on to the news from pharmaceuticals sector. According to a leading financial daily, Torrent Pharma is acquiring the active pharmaceutical ingredient (API) manufacturing facility of Glochem Industries at Visakhapatnam.
APIs are used in the manufacturing of drugs and have a pharmacological effect.
The company currently has five formulation manufacturing units. Post-acquisition, the number of API facilities of Torrent Pharma for the regulated markets will be three.
Reportedly, the unit being acquired is a multi-product facility approved by the USFDA (United States Food and Drugs Association) as well as European regulatory authorities.
This acquisition will reportedly help in vertically integrating its abbreviated new drug application (ANDA) filings in the future.
The acquisition will also involve a few Drug Master Files as a going concern. Going forward, it will be interesting to see whether this acquisition scales up the company's capacity to meet global demand.
Despite being a late entrant to the US market, Torrent Pharma managed to compete with the existing established players. We have shared our insights on the same in one of our editions of The India Letter. Click Here to know more (Subscription Required).
Torrent Pharma was trading up by 2.3% at the time of writing.
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