Most major Asian stock markets have opened the day in the red. Stock markets in Hong Kong (down 1.2%) and China (down 1.1%) are leading the losses. However, the Indian stock market have opened the day on a positive note. Consumer durables and healthcare stocks are leading the gains. However, realty and metal stocks are trading in the red.
The BSE-Sensex is trading higher by around 40 points (0.2%), while the NSE-Nifty is up by around 10 points (0.2%). Mid and small cap stocks have opened on a positive note as well with BSE Mid Cap and BSE Small Cap indices up by 0.3% each. The rupee is trading at 49.19 to the US dollar.
Pharma stocks have opened the day on a firm note with Sun Pharma, Orchid Chemicals and Cipla trading firmly in the green. Indian pharmaceutical major Lupin announced that it has launched the generic version of Watson's Fortamet which has annual sales of around US$ 90 m. The branded product's generic name is metformin ER. It is used to improve glycemic control in adults with type II diabetes which is usually related to lifestyle. Lupin has launched the drug despite an impending patent suit against it in the US. It has a first-to-file status on its application with the US Food and Drug Administration (FDA) for the drug. This means that the company would have an exclusive period to sell the drug for 180 days after the litigation is settled.
Sintex Industries has announced the second quarter results for the financial year 2011-2012 (2QFY12). The company has reported around 25.3% year-on-year (YoY) growth in sales. However, operating margins contract to 17.7% during 2QFY12, from 18.6% in 2QFY11. At the bottomline level, net profits have declined by 61.2% YoY. Growth was driven by both the plastics and textiles business divisions, registering a growth of 25.9% YoY and 20.2% YoU respectively. The decline in net profits was due to huge unrealised forex losses. However, adjusting for the forex losses on outstanding FCCBs (foreign currency convertible bonds), net profits increased 23.3% YoY. Even the interest costs were higher during the quarter with the overall working capital cycle increasing due to delayed payments from overseas subsidiaries. The order book in the monolithic segment stands at Rs 30 bn. The stock of Sintex Industries is currently trading marginally in the red.