Metals lead the losses

Thu, 29 Sep 09:30 am

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Asian stock markets have opened the day on a mixed note with stock markets in South Korea (up 1.1%), Taiwan (up 0.3%) and Indonesia (up 0.2%) are trading firm, while markets in China (down 0.8%), Japan (down 0.4%) and Singapore (down 0.3%) are facing selling pressure. The Indian stock markets have opened the day on a weak note. Metal, capital goods and consumer durable stocks are leading the losses.

The BSE-Sensex is trading lower by around 97 points (0.6%), the NSE-Nifty is down by around 28 points (0.6%). The midcap and smallcap stocks are in the negative as well with both the BSE Mid Cap and BSE Small Cap indices down by 0.5% and 0.3% respectively. The rupee is trading at 48.93 to the US dollar.

Pharma Stocks have opened the day in the red with Sun Pharma, Glenmark Pharma, Cipla, Cadila Healthcare and Divi's Lab facing selling pressure. According to a company spokesperson, Indian drug manufacturer Glenmark Pharmaceuticals has launched malaria treatment drug atovaquone and proguanil hydrochloride in the US. Atovaquone and proguanil hydrochloride tablets are generic equivalent of GlaxoSmithKline's brand Malarone. Glenmark had settled a patent litigation with GlaxoSmithKline in April 2010. Post settlement, Glenmark has been permitted to launch the generic tablets in the US on royalty-bearing licence in the third quarter of calendar year 2011 (3QCY11). Malarone had reported revenues of US$ 56 m in 2009 in the US.

Oil & Gas stocks have opened the day on a weak note with Cairn India, Reliance Industries, Essar Oil and Petronet LNG leading the losses. British Petroleum (BP) group chief visited India for the first time after BP-Reliance Industries alliance got the Government nod. The chief said that the two entities have set up a joint team which will study the possibility of increasing D6 gas fields output. The team is evaluating the potential to add production from other blocks such as NEC 25, and developing other exploration options. The BP Chief is confident that they will be able to increase output by their efforts within time. Both the BP chief and Mr Mukesh Ambani have met senior ministers of India during former's visit. The consumers and government are concerned due to the decline in D6 output. The output which was once at the peak of 60 mmscmd (million metric standard cubic meter per day) in 2009 has been consistently dipping since then. Currently, RIL is producing around 42 mmscmd from the fields and further decline is expected over a period of time.