After opening in the green, the Indian Indices are trading positive in the morning session amid outperformance in mid and small cap stocks. The buying interest is the highest in Banking and Pharma stocks.
Most Steel stocks are trading positive today. Jindal Saw and Tata Steel are among the stocks leading the gainers. India's leading steel company, Tata Steel has announced further restructuring of its European operations. The restructuring pertains to its long products business in the United Kingdom (U.K) which produces tubes, rails and rods. The prolonged slowdown in steel demand in Europe since 2007 has resulted in this restructuring. The company confirmed that these proposals would affect the employment of up to 500 people. The sites in the U.K that would be affected are Scunthorpe, Workington and Teesside. The demand for the products manufactured at the Scunthorpe site, in particular, has been facing a serious downturn. Tata Steel, which is Europe's second largest steel producer, has faced a slowdown in steel demand since 2007. This was the same year that it acquired Corus steel in the U.K. Tata Steel is trading up 1.4% today.
Indian Pharma stocks are trading mixed today. Torrent Pharma and Panacea Biotec are leading the gainers; while Divis Laboratories and J.B. Chemicals are leading the losers. Ranbaxy Laboratories' 3QCY13 results have been disappointing. The company's consolidated sales have risen by 3% YoY to Rs 27.5bn. As per the company, the sales were impacted by the new pricing policy and trade concerns in India. Also, the absence of any post exclusively sales during the quarter led to moderate growth in sales. The company reported a loss of Rs 4.5 bn; mainly as a result of write-offs this quarter because of the US regulatory enforcements at the company's Mohali facility. Also, Ranbaxy incurred a forex loss of Rs 3.6 bn this quarter; while in the previous year’s corresponding quarter it had incurred a forex gain of Rs 3.9bn. During the current quarter, the company's sales from the US market rose by just 2.6% YoY to Rs 7.9bn. In the domestic market, the company reported sales of Rs 5.7 bn; which was in line with last year's corresponding quarter. Ranbaxy is trading flat today.