Indian share markets pare gains

Wed, 4 Sep 01:30 pm

   Previous Close   

   Pre-Open   

   09:30 am   

   11:30 am   

   Closing   

Indian share markets pared gains but continued to trade well above the dotted line in the post-noon trading session. Barring realty and FMCG all the sectoral indices are trading in the green with auto, oil and gas and IT stocks being the biggest gainers.

BSE-Sensex is up by 162 points and NSE-Nifty is up by 87 points. BSE Mid Cap is trading up 0.5% and BSE Small Cap index is trading up 0.4%. The rupee is trading at 66.9 to the US dollar.

Majority of the automobile stocks are trading in the green, with Tata Motors and Ashok Leyland being the major gainers. However, Maruti Suzuki and Force Motors are among the few stocks trading in the red. As per a leading financial daily, Tata Motors has not deferred its Rs 30 bn capital expenditure plan for FY14 despite of the severe slowdown in automobile sales. The company has said that it does not want the current slowdown to deter it from exploiting future opportunities. Tata Motors wants to launch products in fast growing vehicle segments where it still lacks presence. The company also wants to give a push to its Nano car. Tata Motors reported a revenue growth of 8% YoY for the June 2013 quarter and this was driven by the Jaguar Land Rover business even as operations in India continued to face pressure. As far as the Indian operations are concerned, as per the company, sluggish economic activity and weak macro environment put pressure on volumes in the M&HCV segment (which forms a huge chunk of the sales volumes). Revenues from the passenger vehicles business was also adversely impacted on account of the slowdown and intense competition. Tata Motors stock is currently trading up by 4.5%.

Majority of Indian pharma stocks are trading in green with Ranbaxy Laboratories and Ipca labs being the leading gainers. As per the financial daily, Ipca's Indore SEZ manufacturing facility has received approval from US regulator, USFDA (United States Food and Drug Administration). The approval is for its oral solid dosage formulations facility located in Indore, Madhya Pradesh. During Nov 2012, the company during its internal quality assurance had observed some non-conformances in this facility and thus had informed the USFDA about it. The facility was awaiting USFDA clearance since then. This approval has paved way for Ipca to export more number of drugs in the US market. Ipca stock was trading up by 6% at the time of writing.