After opening firm, the benchmark Indian indices have shed their initial gains and have fallen below the dotted line in the morning trading session. Majority of sectoral indices are trading weak with pharma and metal stocks being the leading losers in the pack.
The BSE-Sensex is trading down 137 points. The NSE-Nifty is trading down 33 points. However, the BSE Mid Cap index is trading up 0.75% and the BSE Small Cap index is trading up 0.21%. The rupee is trading at 60.94 to the US dollar.
Automobile stocks are trading mixed today. While Mahindra and Mahindra (M&M) is trading weak; Escorts and Eicher Motor are among the leading gainers. As per a leading financial daily, car sales have grown by 15% for the month of August. This growth has been at the fastest pace so far during this fiscal. The companies had launched new models and offered good discounts which helped in this robust growth. Reportedly, as per the data released by the Society of Indian Automobile Manufacturers (SIAM), the commercial vehicle category witnessed good traction on the back of expectation of turnaround in the economy. The major performers during this month were large carmakers like Maruti Suzuki, Hyndai Motors and Honda Cars.
Majority of the Indian pharma stocks are trading in the red with Ranbaxy Laboratories and Sun Pharma being among the leading losers. As per a financial daily, Sun Pharma's facility located in Halol, Gujarat is undergoing a surprise USFDA inspection. This move was triggered as there have been instances of drug recalls in the US market. These drugs were manufactured in this facility. Reportedly, the plant contributes approximately 40% to US sales and approximately 25% to consolidated profits. Thus any negative development with respect to this facility can impact the company's overall performance. This plant was last inspected in September 2012. Sun Pharma is trading down by 4%.