Indian markets continued to witness selling pressures during the post noon trading session. Barring stocks from automobile sector all the sectoral indices are trading in red. Stocks from capital goods and banking sector are among leading losers
BSE-Sensex is down by 180 points and NSE-Nifty is trading down by 57 points. While BSE BSE Mid Cap is trading down by 0.86%, BSE Small Cap index is trading down by 0.47%. The rupee is trading at 62.08 to the US dollar.
Most of the Indian pharma stocks are trading in red with Wockhardt Ltd and Dishman pharma being among the leading losers. As per the financial daily, there was rumour about Ranbaxy's promoters, Daichii Sankyo intending to delist the shares of Ranbaxy. Today the promoters have clarified this rumour, that Daichii Sankyo has no intention to delist the Indian company's shares. Reportedly, Daichii Sankyo's CEO's relative is believed to buy the stock of Ranbaxy, this had triggered the rumour that Ranbaxy is going to make some big announcement which can also be Daichii announcing delisting of the shares. However, Daichii, announced that as the identity of the CEO's relative relative has not been disclosed in the news item, therefore the Company is unable to provide any information on this front.
Most of the Automobile stock are trading in red with Ashok Leyland and Bajaj Auto being among the leading losers. According to a leading financial news daily, the country's largest two-wheeler maker Hero MotoCorp is set to acquire 60% stake (i.e. 17.49 lakh shares) in joint-venture (JV) with Italian firm Magneti Marelli. The premise for the joint venture is to sell , distribute and market complete two wheeler fuel injection systems or component parts amongst others. Hero MotoCorp and Magneti Marelli has already announced plans to invest USD 27 mn in the JV over the next 10 years. They are also targeting sales of around USD 100 mn in the 5 years. The partners would invest USD 8.5 mn in the ratio of 60:40 over a period of 3 years.
The Italian firm Magneti Marelli that designs and produces advanced systems and components for automotive industry registered a turnover of Rs 5.8 bn Euros in 2012. Back home, Hero Motocorp reported a growth of 10% YoY and 9% YoY in revenues and net profits respectively during 2QFY14. The management also intends to introduce 7 new products every year which will be a combination of completely new products, refreshing existing products and launching new variants going forward. And this step towards stake acquisition of the Italian firm would definitely add value to the company's franchise.