Barring Singapore (up 0.2%), major Asian stock markets have opened the day on a weak note with stock markets in Taiwan (down 1.6%) and Malaysia (down 0.4 %) leading the losses. The Indian share markets have opened the day on a positive note. Majority of the sectoral indices have opened on a firm note with healthcare and FMCG stocks leading the gains. However, realty and capital goods stocks are trading weak.
Majority of FMCG stocks have opened the day on a firm note, with Marico Ltd and Kokuyo camlin being the leading gainers in the pack. As per the financial daily, Marico is looking to advance its operations in the emerging markets. Reportedly, the company is aiming to double its sales in next four years and will focus more on emerging markets of Asia and Africa to fuel its growth. Categories like hair, food, and wellness products are expected to be the major contributors. The company at present has operations in Bangladesh, Egypt, the Middle East, South Africa, Malaysia and Vietnam, and now it is also looking at expanding in other global geographies. For the upcoming period, the company expects growth from its international market in the range of 14-15%. Currently, international markets contribute approx 16% to the company's top line. Over and above, the company is not looking for any acquisitions in the international markets and will focus on organic growth.
Majority of Indian pharma stocks have opened in green with Aurobindo Pharma and JB Chemicals being the leading gainers. As per the financial daily, Sun Pharma and Ranbaxy Laboratories are expected to control around 40% market for 25 drugs post Ranbaxy's acquisition by Sun Pharma. Reportedly, for nine drugs the market share of the merged entity will be more than 65% and for another 15, the market share will be approximately 60%. In addition, there are 11 drugs in which the Sun-Ranbaxy combine will enjoy a 33-40% market share. In all, the two companies have 128 common formulations. Recently, the Competition Commission of India (CCI) has raised some concerns over the merger. This was largely because the deal is expected to increase market domination by one company. This in turn will impact the prices of essential drugs in the domestic market. Reportedly, the CCI can ask the companies to divest its brands to other players in order to relax the higher control in some categories.