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The Indian share markets continued to trade weak during the post noon trading session amid weak Asian markets. Barring FMCG stocks, all sectoral Indices are trading in red with stocks from auto & capital goods sector leading the gains.
The BSE Sensex is trading lower by 55 points (down 0.2%) while the NSE Nifty is trading lower by 34 points (down 0.4%). The BSE Mid Cap index is trading down by 1.1% while BSE Small Cap index is trading down by 0.8%. Gold prices, per 10 grams, are trading at Rs 29,893 levels. Silver price, per kilogram is trading at Rs 42,149 levels. Crude oil is trading at Rs 3,294 per barrel. The rupee is trading at 66.80 to the US$.
As per an article in The Economic Times, Dr.Reddy's Laboratories Ltd announced that it has entered into a strategic partnership with Gland Pharma. Gland Pharma is a globally recognized developer and manufacturer of sterile dosage forms.
Reportedly, the portfolio consists of filed ANDAs pending approval by the US Food and Drug Administration (USFDA) and ANDAs that will be filed imminently. It will also comprise of generic injectables administered in hospitals and clinics in the U.S. The collaboration is aiming to market and distribute a diverse portfolio of eight injectable Abbreviated New Drug Applications (ANDAs).
According to US-based IMS Health, the combined sales of branded and generic versions of the products in the US are estimated at around US$1 billion for the 12 months ended August.
One must note that, Dr. Reddy's is aggressively also developing its US injectable business and recently launched Paricalcitol Injection, a therapeutic equivalent generic version of Zemplar.
The shares of Dr Reddy's were trading up by 2.2% while writing.
Auto stocks are trading on a negative note with Escorts and Tata Motors leading the losses. According to a leading financial daily, Gulf Oil Lubricants India (GOLIL) and Bajaj Auto has entered into a strategic Original Equipment Manufacturer (OEM) tie-up.
As per the deal, GOLIL will manufacture Bajaj Genuine Oil in their manufacturing facility and distribute these lubricants in Bajaj Auto's dealer network. It will also tap into the bazaar market through Gulf's dealer network and in rural areas.
Notably, Gulf Oil is among the fastest growing brands in the Indian oil lubricants industry. This association is the first OEM tie-up in the two-wheeler segment. Apparently, it will help the company grow further in the motorcycle oil segment, the company stated. These lubricants are available in two variants, 10W-30 (for bikes up to 100 cc) and 20W-50 (for bikes above 100 cc).
The Indian auto industry has had its fair share of ups and downs. The two-wheeler industry has faced fixed fortunes. However, one segment within the two-wheeler industry has been doing well quite consistently, i.e; scooters. Radhika Pandit, managing editor of ResearchPro recently wrote about this in Riding on the Growing Scooter Craze (Subscription Required) for The 5 Minute Premium. Bajaj Auto continues to dominate the two-wheeler space. Whether it widens its footprints in this segment further will be the key thing to watch out for going ahead.
The shares of Bajaj Auto were trading down by 1.2% at the time of writing.
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