Indian equity markets continued to trade weak over the last two hours of trade on back of heavy selling pressure witnessed across industry heavyweights. Realty and capital goods stocks witnessed maximum selling pressure.
Energy stocks are trading in the red led by Essar Oil and Reliance Industries. According to a leading financial daily, Oil and Natural Gas Corporation Ltd. (ONGC)'s plans to move out of the coal bed methane (CBM) business and focus on the conventional oil and gas exploration and production business may face more delay. The company was forced by the Ministry of Petroleum and Natural Gas to cancel bidding for farming out CBM blocks. They would now opt for international bids. However, existing suitors may not be interested anymore. UK listed Great Eastern Energy Corporation (GEECL), Brisbane-based Dart Energy, and Essar Energy, which had earlier bid for the stake, may not participate in the re-bid. These companies are upset by the government's intervention in the matter.
Pharma stocks are trading strong led by Aurobindo Pharma and Opto Circuits. According to a leading financial daily, Pfizer Inc, the parent company of Pfizer India, has terminated its three-year old supply deal with Claris Lifesciences, immediately after a ban on the company's US sales was lifted. Pfizer lost two crucial years when the ban was in force and did not see any major business coming from generic injectables made by Claris. Claris entered into an agreement with Pfizer in 2009 to gain access to markets in North America, Europe and Australia. The deal allowed the company to sell 15 off-patent parenteral products made by Claris in the Western markets under its own brand name and add more products to its global generic basket worth US$ 10 bn. However, in 2010, the US regulator (USFDA) issued a warning to Claris over quality issues and banned the company from selling its products in the US until it complied with the issues.