Indian equity markets slip in red

Wed, 6 Nov 01:30 pm

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The Indian markets have shed gains and are trading in red during the post noon trading session. Most of the sectoral indices are trading in red with realty and banking stocks leading the pack of losers. However, stocks from power, IT and healthcare sectors are witnessing buying interest.

BSE-Sensex is down by 50 points and NSE-Nifty is trading down by 21 points. While BSE Mid Cap is trading down by 0.08%, BSE Small Cap index is trading up by 0.56%. The rupee is trading at 62.19 to the US dollar.

Most of the Indian pharma stocks are trading in green, with Wockhardt Ltd and Cadila healthcare being the leading gainers. Dr Reddy's is sued by two Japan based companies, Tejin pharma and Takeda, in the district court of Delaware, US. The litigation was filed as Dr Reddy's filed a Para IV on the said companies' drug Uloric brand (generically known as febuxostat). The said drug is available in tablet form in 40mg and 80mg strengths. Uloric is indicated for chronic management of hyperuricemia in patients with gout. Dr Reddy's had filed an ANDA (Abberivated new drug application) along with para IV, challenging the company's patent expiring in Jun 2018. The other patent which expires in March 2019, is not challenged by Dr Reddy's. The Japanese companies have also sued Mylan for filing Para IV on the Uloric. Both Mylan and Dr Reddys were sued on the same day and seem to be FTF (First to file) filers. And thus these companies can be entitled for 180-days exclusivity. The annual branded sales of Urolic is $ 260 m for 12 months ending June 2013.

Majority of theFMCG stocks are trading in the green with Lakshmi Energy and Jyothy Consumer being the biggest gainers whereas Hindustan Unilever and Colgate are among the major losers. As per a leading financial daily, <>Marico is developing a prototype of its Saffola edible oil for the rural markets in the light of slowdown in urban demand. Currently Saffola's reach is limited to 6-10 metro markets and does not have rural distribution. The Saffola edible oil franchise grew by a subdued 7% in FY13. As per Marico, the slowdown has not been on account of downtrading by existing customers but slower new customer additions. The company wants to tap the potential in the rural markets and expects it to contribute about 2% additional growth for the brand. The company is test-marketing its saffola prototype in one state. Reportedly, rural markets account for 35% of Marico's overall sales. The company has expanded its Saffola oil franchise through new variants and price points and expects growth of 10% over the next few quarters. Marico's stock is currently trading up by 0.3%.