Indian indices lost their opening gains on profit booking in heavy weights over the previous two hours of trade. Stocks from the metal and auto space are trading firm while stocks from the IT and power space are trading weak.
The BSE-Sensex is up by 33 points while NSE-Nifty is trading 8 points above the dotted line. BSE-Midcap is up by 0.6% while BSE-Smallcap index is trading 1.2% above Friday's closing. The rupee is trading at 44.40 to the US dollar.
Healthcare stocks are trading mixed with Ranbaxy and Glenmark Pharma trading in the green and Apollo Hospital and Biocon trading in the red. As per a leading financial daily, Cadila Healthcare is expected to benefit from the French government's cost saving measures. The French government recently announced plans to save EUR 860 m next year through price cuts on medicines and medical devices and measures to encourage use of generic or off-patent medicines. This move forms part of France's plan to save EUR 2.4 bn its social security for financing. Cadila being the only Indian company with a serious presence in France, is expected to make significant gains from this. It may be recalled that Cadila had seen a growth of 31% YoY from France in FY10.
Auto stocks are trading mixed with Tata Motors and Hero Honda trading firm while Force Motors and Escorts were trading weak. As per a leading financial daily, the production of Nano cars is expected to climb to 8,000 - 9,000 units in the next two-three months as production at the dedicated manufacturing plant at Sanand is ramped up. It may be noted that the production of the cars had fallen in September as the company had stopped making the car at the Pantnagar plant and shifted production entirely to its Sanand facility. The Sanand plant has a capacity of 240,000 units per annum. However, according to a company official the whole supply chain is to be fully in place before the company ramps up production. As of now, some of the he component suppliers for the Sanand plant are yet to be fully operational.