Indian stock market
began the day's proceedings on a strong note before profit booking at higher level erased some gains. However, the markets managed to trade above the dotted line throughout the trading session, although trading remained range bound from the afternoon session onwards including the final hour. While the BSE-Sensex closed higher by around 52 points (up 0.3%), the NSE-Nifty closed higher by around 23 points (up 0.4%). The BSE Midcap
and BSE Small cap
also notched gains of 1% each. Barring FMCG
stocks, gains were seen across sectors.
As regards global markets, Asian indices closed firm today while European indices have opened on a mixed note. The rupee was trading at Rs 44.36 to the dollar at the time of writing.
closed mixed today. While Bajaj Auto and Hero Honda were out of favour, Ashok Leyland and Tata Motors closed firm. As per a leading business daily, Bajaj Auto released its sales numbers for the month and quarter ended June 2011. For the quarter, the company reported an 18% YoY increase in its total sales at 1,092,815 units. While motorcycle sales grew by 16% YoY, commercial vehicle sales rose by 30% YoY. For the month, total sales rose by 16% YoY with commercial vehicles and motorcycle sales growing by 34% YoY and 14% YoY respectively. It must be noted that most players in the auto industry had witnessed two very strong years of growth in FY10 and FY11 as demand gathered pace and commodity prices remained benign. But that is now changing. Rising input costs put pressure on the operating margins of auto companies in FY11 and this is expected to persist in the near term at least. Moreover, rise in interest rates could lead to a slowdown in demand for vehicles going forward.
also closed mixed today. While Glenmark and Cadila Healthcare closed in the red, Dr.Reddy's and Cipla found favour. Pharma major Glenmark has settled its litigation with Daiichi Sankyo and Genzyme Corporation. This is with respect to the Indian company's ANDA filed with the US FDA (under Para IV) for 'Colesevelam Hydrochloride'. This drug is the generic version of Daiichi and Genzyme's patented drug 'Welchol' for the treatment of type 2 diabetes. As per the IMS, the drug generated sales to the tune of US$ 51 m for the oral suspension and US$ 327 m for the tablet for the 12 month period ending December 2010. As per the terms of the settlement, Glenmark will be able to market its generic versions in April 2015 or earlier under certain circumstances. It must be noted that in recent times, Indian generic companies have increasingly been looking to settle patent suits with respect to Para IV filings that they have made. Although it delays the launch of the drug, it obviates the need for further legal expenses and also provides some visibility with respect to the revenues that can be generated from these drugs. Also, because of these settlements, most of these companies get to enjoy the 180-day exclusivity some months before the patent on the drug expires.