Indian indices recouped some of their early losses during the previous two hours of trade. Stocks from the FMCG and healthcare sectors are trading flat while the rest of the indices shed value. Stocks from the oil & gas and PSU space are trading weak.
The BSE-Sensex is trading down by 7 points while NSE-Nifty is trading 4 points below the dotted line. BSE-Midcap is trading negative (down 0.4%) while BSE-Smallcap index is flat. The rupee is trading at 44.94 to the US dollar.
Capital goods stocks are trading weak with ABB, Bharat Earth Movers leading the losses. L&T's metallurgical, material handling & water operating company which is a part of its construction division has secured multiple orders worth Rs 7 bn from various customers. In the water sector, the company has bagged two orders. The largest one is worth Rs 3.8 bn from Jabalpur Municipal Corporation, Madhya Pradesh. The project is funded under JNNURM scheme and has to be executed within 30 months. The second order is worth Rs 1.7 bn from Haryana State Industrial and Infrastructure Development Corporation. The order has to be executed in 21 months and is for developing infrastructure facilities in the industrial estates located in Panipat and Rai. In the material handling sector, the company has bagged orders worth Rs 1.6 bn from Bhushan Steel, to be executed in 16 months. This project is for material handling works in the company's steel plant in Orissa.
Pharma stocks are trading mixed with Orchid Chemicals and Wockhardt leading the gains. IPCA Labs and Dr Reddy's are trading weak. Lupin announced that it acquired a majority stake in Australia's Generic Health for an undisclosed amount. Generic Health supplies generic medicines to pharmacists and hospitals all over Australia at a low costs. It has various partnerships with international drug manufacturers. The acquisition has been completed by its Netherlands based subsidiary called Lupin Holdings BV through a subscription of rights issue. Last fiscal, Lupin increased its stake in Generic Health to 49.9% from 36% held previously. Now, with a controlling stake in Generic Health, the company is looking to strengthen its presence in the Australian market.
Australia is a strategic market for Lupin valued at US$ 9 bn market. Out of this the
generics share is over US$ 1 bn, a major opportunity for the company. Lupin has built up a sizable amount of product pipeline in therapeutic areas of heart ailments, diabetes and over the counter products, specially intended for the Australian market. The company has filed approvals for many of these products from the Australian authorities. It will be able to use Generic Health's network to help market its products.