Asian stock markets have opened the day on a mixed note with stock markets in Japan (up 1.1%) trading in the green. However, markets in South Korea (down 0.3%) and China (down 0.3%) are facing selling pressure. The Indian stock markets have opened the day on a firm note. Stocks in the technology, realty and capital goods space are leading the gains.
The BSE-Sensex is trading higher by 90 points (0.6%), while the NSE-Nifty is up by around 26 points (0.6%). Mid cap and small cap stocks are trading in the green as well, with the BSE Mid Cap and BSE Small Cap indices up by 0.6% each. The rupee is trading at 52.89 to the US dollar.
Indian Pharma stocks have opened the day on a mixed note with Ranbaxy Laboratories and Biocon trading in the red. However, Aurobindo Pharma and IPCA Labs are trading firm. Leading pharma company, Lupin, is planning to replicate the business model of its Japanese subsidiary in other countries. In Japan, Lupin has been expanding through acquisitions in the local market. Recently, the company acquired I'rom Pharmaceuticals and now aims to have US$ 300 m revenues from the Japanese market. To further strengthen its global operations, Lupin aims at a similar acquisition strategy in America, Europe, and Canada. It will concentrate first in the markets like Brazil, Argentina, and some European countries. At present in Brazil, the company has a strategic tie-up with the state-run company to market its products. In Argentina, Lupin sells through third party distributors approved by World Health Organisation (WHO).
Auto stocks have opened the day on a firm note with Exide Industries, Tata Motors, Ashok Leyland, Hero MotoCorp and Mahindra & Mahindra (M&M) trading in the green. M&M has signed a Memorandum of Understanding (MoU) with public sector lender Indian Overseas Bank (IOB) for providing financing for a range of its vehicles. IOB had plans to enter commercial vehicle financial market and through this MoU it has done so. The bank offers financing of commercial vehicles at 12.5% interest rate. As per a certain senior personnel of M&M, the automaker was growing at 20% year-on-year (YoY) in the passenger vehicle space and at 35-40% in the commercial vehicle space.