The Sensex today is trading lower by about 140 points (down 0.7%), while the NSE-Nifty is trading lower by about 40 points (0.7%). Stocks from the midcap and smallcap spaces are also trading weak with the BSE Mid Cap and BSE Small Cap indices down by about 0.8% and 1.1% respectively. The rupee is trading at 51.71 to the US dollar.
Stocks of pharmaceutical companies are trading weak led by Pfizer, Novartis and Abbott India. As per a leading financial daily, the commerce department is going in a big way to grab US$ 30-40 bn worth of the overseas generics market as patents held by multinational companies set to expire over the next three years. Under its recently launched 'Brand India Pharma' campaign, the commerce department wants to hard-sell Indian generics in difficult but promising markets where the focus will be on credibility, quality, availability and affordability of Indian medicines. Reportedly, India's pharma exports stood at $13 billion in 2011. The country produces 20% of the generic medicines of the world and accounts for about 70% of medicines supplied to poor countries through humanitarian agencies. Recently, the commerce department led two delegations comprising Indian pharma companies like Dr. Reddy's, Lupin, Mylan and Nectar, to Japan and Indonesia under the Brand India Pharma Campaign to explore opportunities there.
Stocks of real estate and construction companies are trading weak led by IVRCL, Gammon India andUnity Infraprojects. After declining sharply in yesterday's trading session, the stock of midcap construction company IVRCL is trading down by about 5% today as well. Declines in the stock are seemingly on the back of reports of the Essel Group selling its 12.27% stake in IVRCL yesterday. It may be recollected that the Essel Group had expressed interest in increasing its stake in IVRCL, after buying into the company about six months ago. In fact, the buzz surrounding the stock of IVRCL was of a possible hostile takeover bid leading it to gain significantly.