Asian stock markets have opened on a negative note with stock markets in Hong Kong (down 1.2%) and Japan (down 0.9%) leading the losses. Only stock market in Taiwan is trading marginally higher (up 0.04%). The Indian stock markets too have opened the day on a negative note. All the sectoral indices are have opened in red with capital goods and auto stocks witnessing maximum selling pressures.
Automobile stocks have opened mixed with Escorts Ltd and TVS motors Ltd leading the gains. However, Tata Motors Ltd and Eicher motors Ltd were facing selling pressure. As per a leading financial daily, Tata Motors is planning to double its dealer network in the country by 2020. To achieve its goal, the company is targeting rural areas and cites alike. The company is looking to increase the market share and dominate the Indian passenger car market. Reportedly, the company, which currently has around 500 touch points currently in India, is aiming to add equal number of dealerships to expand its presence. Currently, company has 15% share in the rural areas and expansion of network will help in increasing this share.
Majority of Indian pharma stocks have opened the day on a negative note, with Natco Ltd and Piramal Enterprise being the leading losers. As per a leading financial daily, drug major Cipla Ltd has announced a sale of its entire 48.22% stake in China-based Jiangsu Cdymax Pharmaceuticals for USD 18.5 million. The company has taken this step to realign its global business. Reportedly, Cipla had acquired stake in this company in order to explore formulations opportunity in China. However, since the company has realigned its global strategy, Cipla did not see strategic fit in holding on the stake. Hence the company has sold its stake. As per the Cipla's spokesperson, the company expects good potential in China pharma market and will be evaluating opportunity going forward.