Indian share markets remain weak

Tue, 2 Jul 11:30 am

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Indian share markets have remained weak in the last two hours of trade. Consumer durables and healthcare are leading the pack of winners while capital goods and realty are facing the maximum selling pressures.

The BSE-Sensex is down by 48 points and NSE-Nifty is down by 21 points. BSE Mid Cap index is down by 0.1% while the BSE Small Cap index is up by 0.2%. The rupee is trading at 59.42 to the US dollar.

Indian Pharma shares are trading on a mixed note with Panacea Biotech and Fresenius Kabi Onco leading the gains while Dishman Pharma and Indoco Remedies are leading the losses. According to a leading financial news medium, Drug firm, Lupin is planning to expand its footprint in Latin America. It will preferably acquire companies in Brazil, Mexico, Argentina and Chile. All these acquisitions will be financed by internal accruals. The pharma major has a history of acquiring firms that suit its business plans, the last acquisition being Japan's speciality injectables company I'rom Pharmaceutical in 2011.The Mumbai-based Company is also targeting to buy brands in key therapeutic areas. In this regard, it is in talks with several companies in the US.

Lupin is the 5th largest and fastest growing generics player in the US (5.1% market share by prescriptions, IMS Health) and the 3rd largest Indian pharmaceutical company by sales. The Company is also the fastest growing top 10 generic pharmaceutical players in Japan and South Africa. Lupin's share is trading up by 2.5%.

Engineering shares are trading on a mixed note with Praj Industries Ltd and Emco Ltd leading the gains while BGR Energy and Jain Irrigation are leading the losses. According to a leading financial news medium, Larsen & Toubro's (L&T) subsidiary, L&T Construction has secured new orders worth Rs 30.6 bn across various business segments in June 2013. The Company's Building and Factories Business has secured orders worth Rs 18.1 bn for the construction of an office space, residential building and a hospital from customers across the country. The Water and Renewable Energy Business has bagged orders worth Rs 6.3 bn. In the Power Transmission and Distribution Business, orders worth Rs 4.4 bn have been received from the Delhi Metro Rail Corporation. Additional orders have also been received in domestic and international markets of ongoing projects. New orders worth Rs 1.8 bn have been secured in Heavy Civil infrastructure and Metallurgical and Material Handling Businesses from various ongoing projects. L&T's share is trading down by 1.2%