Indian stock market indices are trading weak over the last two hours of trade on the back of heavy selling activity across index heavyweights. Pharma and FMCG stocks witnessed maximum buying interest while banking and Metal stocks witnessed maximum selling pressure.
The BSE-Sensex is down by 102 points, while the NSE-Nifty is down by 35 points. BSE Mid Cap index is down by 0.09% while the BSE Small Cap index is up by 0.05% respectively. The rupee is trading at 49.08 to the US dollar.
Pharma stocks are trading strong led by Glaxosmithkline Pharma and Sun Pharma. According to a leading financial daily, Ranbaxy has received conditional approval from Drug Controller General of India (DCG) for its anti-malaria drug, thus paving the way for the launch of the country's first privately-developed medicine. The marketing license was subject to the condition that the Chinese plant from where Ranbaxy imported key ingredients for the drug was inspected and approved. The new drug is likely to cost less than one-third of the price of similar brands in the market sold by foreign drug makers. This will be the first time that a new molecule discovered and patented by a home grown company will be sold commercially.
Auto stocks are trading weak. All the stocks in the sectoral index are trading in the red except for Tata Motors. According to a leading financial daily, Tata Motors is planning to challenge the Calcutta High Court order upholding the validity of the Singur Land and Rehabilitation and Development Act by which West Bengal government vested the land leased to the company at Singur, before a division bench of the Court. Earlier West Bengal state government had said that they would be distributing land once the status quo was over. But with the company challenging the order, an extension of status quo is likely to be sought. Although the High Court order provided some relief to the company in terms of guidelines for compensation, which is left vague in the Act, Tata's are looking to get back its land at Singur.