The Indian markets have started today's session on a positive note. The benchmark indices opened above the breakeven mark and have stayed in the positive territory. Other key Asian markets are in the green with China (up 0.7%) leading the pack of gainers. The US markets closed higher by 0.2% yesterday.
Currently in India, heavyweights from the BSE-Sensex are trading strong with FMCG and realty majors finding investors' favour. The BSE-Sensex is trading higher by around 45 points, while the NSE-Nifty is up by about 15 points. Buying interest is also being witnessed among mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are trading higher by 0.5% and 0.6% respectively. The rupee is trading at 46.92 to the US dollar.
Pharma stocks have opened the day on a positive note. Gainers here include Glenmark and Ranbaxy. As per a leading business daily, Cipla plans to invest Rs 10 bn in factories, expansion of existing facilities and infrastructure. The company is setting up a new research and development (R&D) centre at Patalganga in Navi Mumbai and is expanding the Vikhroli R&D unit in Mumbai. It will also invest in biotechnology, in China and India. The company will also acquire Meditab Specialities, a promoter group company, for Rs 1.3 bn. It has also entered into a deal to invest about Rs 500 m in Stempeutics Research to access stem cell-based therapies. Moreover, a factory to produce reverse engineered versions of biotech drugs is in the process of completion in Goa. The first products will be launched in early 2012. Earlier, the company had indicated that it would invest Rs 3 bn over three years to acquire 40% in a biotech company in India, and 25% in a Hong Kong-based company with manufacturing units in Shanghai.
Auto stocks have opened the day on a strong note. Gainers here include TVS Motor and Eicher Motor. As per a leading business daily, Tata Motors is looking at joint development of compact engines with Jaguar and Land Rover (JLR). The two companies intend to jointly develop smaller engines that could be fitted on vehicles of all the three brands - Jaguar, Land Rover and Tata Motors. It may be noted that JLR is facing pressure due to emission norms in Europe and will have to start downsizing their engines. The engines for JLR are currently supplied by Ford. Tata Motors can combine its knowledge in compact engines as well as low-cost development with the R&D expertise of JLR. Interestingly, this development comes at a time when Tata Motors is looking at assembling the Land Rover in India, to bring down its cost and increase its market potential.