Indian pharma stocks are trading mixed, with Ranbaxy Laboratories and Wockhardt being the leading gainers and Lupin and Sun Pharma witnessing maximum selling pressures. Ranbaxy has signed an agreement to set up a greenfield manufacturing facility in Malaysia. This will be Ranbaxy's second manufacturing plant in Malaysia and will entail a cost of US$ 35 m. Ranbaxy forayed into the Malaysian market three decades ago where it has been selling generic medicines. In addition to servicing the domestic market, the facility will also export products to the Association of Southeast Asian Nations (ASEAN), Middle East, Europe, Sri Lanka, China and other nations. The new facility in Malaysia would manufacture dosage forms including tablets and capsules primarily in the cardiovascular, anti-diabetic, anti-infective and gastrointestinal segments. After the commissioning of the plant, Ranbaxy's total output in Malaysia will increase from 1 bn doses/annum to 3 bn doses/annum. Ranbaxy stock is currently trading up by 12.5%.
Majority of the steel stocks are trading in the green with Gujarat Mineral Development Corporation (GMDC) and Jindal Saw being the biggest gainers. Only Maharashtra Seamless and Bhushan Steel are trading in the red. As per a leading financial daily, the government has relaxed norms for steel imports by major industrial project developers. The Directorate General of Foreign Trade (DGFT) in a notification has said that major infrastructure/ industrial projects having size of more than Rs 10 bn can import steel and steel products without quality certification. However the imported products should have quality certification from the recognized Quality Certifying Body of the country of origin. This exemption is valid for two years and is applicable to projects in the infrastructure, petroleum, manufactured products involving high-end technologies, nuclear reactors, defence, chemicals, petro-chemicals and fertilizer sectors. The easing import regulations have come in the backdrop of the domestic steel companies demanding a hike in the import duty to prevent steel dumping in the country. Reportedly, steel imports surged by 69% to 1.5 m tonnes in the first two months of FY14.