Indian markets have recovered some losses and are trading above the dotted line during the post noon session. Barring stocks from IT, FMCG and capital goods, all the sectoral indices are trading in green. Most noticeable upward movement is witnessed in stocks from consumer durables and auto sectors.
Indian pharma stocks are trading mixed. Sun pharmaceuticals and Natco pharmaceuticals are among the leading gainers while Dishman and Ipca labs are leading among the pack of losers. Sun pharma's Israel based subsidiary Taro pharma declared results for the September quarter. Net sales increased by 27.5% YoY. On the operating front, EBITDA margins stood at 63% vs 54% in 2QFY13. This was helped by better gross product mix. The settlement and contingent expenses also declined during the quarter, this too helped in margin improvement. On the bottom line, PAT increased by 46% YoY. Better growth was also attributable to lower forex losses which were down by 70% YoY for the current quarter. Sun pharma is currently trading up by 3%.
Majority of the PSU banking stocks are trading in the green with Bank of Baroda and Bank of India being the major gainers. As per a leading financial daily, India's second largest PSU bank, Punjab national bank (PNB) said that it expects credit growth to reach 12-15% by this fiscal end from 2.5% last year. The growth is expected to be largely driven by demand from retail, agriculture and various other micro, medium and small enterprises. Reportedly, as per the bank's executive director, Rakesh Sethi, things are expected to improve and 2HFY14 will be much better than 1HFY14. Till 1HFY14, the company's credit growth has reached 7%. Further, the bank does not intend to raise lending rates as the cost of deposits has not gone up so far. The bank's Non Performing Assets (NPAs) have also remained at the same levels.