Indian share markets pared early gains and trended lower in the post-noon trading session. They continue to trade above the dotted line however. The sectoral indices are trading mixed with auto and banking stocks being the biggest Gainers.
Indian pharma stocks are trading mixed with Piramal Enterprise and Aurobindo pharma being the leading gainers, while Cadila healthcare and Orchid chemicals are the leading losers in the pack. As per the financial daily, the Indian pharma companies have witnessed hit in the US sales due to delay in the US drug approvals. Reportedly, the drugmakers expect slowdown in approvals to continue for next two quarters due to ongoing overhaul in the review process. The USFDA had implemented the Generic Drug User Fee Act (GDUFA) programme in October 2012, to expedite the approval for sale of generic drugs. However, not much progress is made to clear the existing backlog of applications. Delay in drug approvals has now begun to impact the US sales.
Power stocks are trading mixed led by CESC and KSK Energy. As per a leading business daily, the central government has asked Coal India to more than double its production and output to 1 billion tonnes by 2019 to feed the current and new power plants. This may enable India to stop imports of thermal coal used for power generation, and the power ministry has indicated that this may happen as soon as in the next three years itself. This will help instill confidence and induce investment in the power generation sector in India, something that has been sorely missing over the past couple of years.