Food & tobacco stocks are trading mixed with ITC and Godfrey Phillips being the major gainers whereas Golden Tobacco and Tata Coffee are among major losers. As per a leading financial daily, the government has shelved the Cigarette and Other Tobacco Products (Amendment) Bill aimed at making restrictions on cigarette sales more stringent. This comes as a relief to cigarette manufacturing companies as until 25th November, the government had indicated that it wanted to go ahead with the anti-smoking legislation that included curbs on loose sale of cigarettes and raising the age bar and fines on public smoking. The move has been on account of the adverse impact of the stringent laws on the tobacco growing farmers of Andhra Pradesh and areca nut growers of Andhra Pradesh. Since many farmers in the country are still dependant on these two cash crops, it was decided that the bill should not be introduced until the farmers shifted to alternative crops. As this is not likely to happen in the near future, the bill has been shelved indefinitely.
Domestic pharma stocks are trading mixed with Wockhardt and J B Chemicals being the major gainers whereas Indoco Remedies and IPCA Labs are trading in the red. As per a leading financial daily, Germany has barred Ranbaxy Laboratories from exporting antibiotic cephalosporin to its country. This development comes after a non-compliance report issued by the German regulator post inspection in June. As per the report, deficiencies were observed in the operation of drug manufacturing rooms and procedures in sterilization of equipment at Ranbaxy's Dewas plant. The company's Dewas factory along with the other India-based plants have already been barred from exporting to US. Reportedly, Ranbaxy derives more than 50% of its revenues from the US. Germany accounted for 2% of the company's global sales during the 15-month period ended March 2014. The company, which has been acquired by Sun Pharma, has been working towards getting the regulatory bans lifted. Ranbaxy stock is trading down 0.9%.