Profit booking led the Indian markets to shed their gains of the first half and move towards the dotted line during the previous hour of trade. Currently stocks from the realty, metal and capital goods spaces are main losers. IT and healthcare stocks are however trading firm. Currently there are 2.1 losers for ever gainer on the overall BSE.
The BSE-Sensex and the NSE-Nifty indices are trading lower by about 10 points each. The pessimism has been extended towards midcap and smallcap stocks as the BSE-Midcap and BSE-Smallcap indices are trading lower by about 1% each. The rupee is trading at 45.64 to the US dollar.
Pharma stocks are currently trading mixed with Ranbaxy and Piramal Healthcare trading weak while Sun Pharmaceuticals and Lupin are trading firm. The stock of Sun Pharmaceuticals is trading firm on the back of the announcement of its receiving a tentative approval from the US FDA (Food and Drug Administration) to market a generic version of 'Cymbalta' in the American market. This drug is used to treat anxiety and depression. The company's US subsidiary has received this tentative approval for the drug in strengths of 20 mg, 30 mg and 60 mg. 'Cymbalta' is a registered trademark of Eli Lilly & Company. Considering that the annual sales of these capsules stands at nearly US$ 3 bn (approximately Rs 135 bn) in the US alone, this is a positive development for Sun Pharmaceuticals as it will augment its revenues from the highly competitive US generics market.
Auto stocks are trading mixed with Bajaj Auto and TVS Motor leading the gains while Maruti Suzuki, Ashok Leyland and M&M are facing selling pressure. A leading business daily has reported that India’s second largest motorcycle maker Bajaj Auto plans to manufacture commercial vehicles as well on a new platform it is developing in Waluj, Maharashtra, for its small car project. The company intends to develop a multidimensional platform through which it can manufacture commercial vehicles and passenger cars. The Waluj plant is being set up at a cost of Rs 5 bn. Of this, Rs 2.3 to 2.5 bn has been earmarked for investment in the current fiscal.