Indian markets have shed some gains in last two hours of trade, but still continue to trade in positive territory. Barring stocks from pharma sector, all the sectoral indices are trading in green. Among the gainers, stocks from capital goods and auto sector are witnessing maximum buying interest.
Indian pharma stocks are trading in green with Natco pharma and Dishman pharma being the leading gainers. Cipla has declared its September quarter results. Net sales increased by 13.6% YoY for the 2QFY14. The growth was led by both domestic and international segments. Domestic business grew by 11.6% YoY, while international business grew by 15.2% YoY. During the quarter, the company also consolidated the acquired business of Cipla Medpro. On the operating front, EBITDA declined by 19.6% YoY, leading to decline in the margins by 9.1%. The impact was largely due to sales of Escitalopram under 180-days in 2QFY13 and higher contribution from low margins ARV (Antiretrovirals) during the quarter. The bottom line too was impacted due to absence of Escitalopram for the current quarter. PAT was down 27% YoY for the said period. Cipla is currently trading down by 1.09%.
Majority of the Automobile stocks are trading in the green with TVS motors and Tata Motors being the major gainers. As per a leading financial daily, Hero Motorcorp is looking to launch two-wheelers in United States and Canada. Reportedly, Hero has appointed its American technology partner Erik Buell Racing as the exclusive distributor. Hero Motorcorp intends to eventually set up manufacturing and assembly plants in the North America over a period of time. Further, a "soft launch" of Hero two-wheelers was held during the month of Oct 2013 at the inaugural American International Motorcycle Expo (AIMExpo). The event took place in Orlando, Florida, where Hero displayed some of its popular brands such as Hunk, ZMR, the updated HF Deluxe Eco, Splendor Pro and the Pleasure scooter. The other details with respect to pricing etc are yet to be determined. Hero Motorcorp is currently trading up by 2.27%.