The benchmark indices languished in the red as investors continued to book profits during the last two hours of trade. Strong selling is seen in stocks in the IT, capital goods and metals space as these stocks trade below the dotted line. However, stocks in the consumer durable, auto and healthcare are seeing some buying interest as they are trading in the green.
BSE-Sensex is trading lower by 101 points while NSE-Nifty is trading 35 points below the dotted line. BSE-Midcap Index is trading flat while some buying activity is seen in the smallcap space as the BSE-Smallcap index is up by 0.1%. The rupee is trading at 44.57 to the US dollar.
Titan Industries announced its FY10 results. The company's standalone top line grew by 23% YoY while the standalone bottom line increased by 58% YoY. Jewellery business which contributes over 70% to the company's topline grew by almost 27% YoY. This was the result of positive consumer sentiments as a result of economic revival and slow rise in price of gold (as opposed to a sudden surge in FY09). Time pieces on the other hand grew by 13% YoY while eyewear and precision engineering grew by 11% YoY. Net profits growth was positively affected by higher operating profits, lower interest costs and higher other income during the year.
Moreover, during the year, Titan adopted new principles of hedging and derivative accounting. The company feels that this would give a more accurate reflection of operating performance and appropriate presentation of statements. The company we feel is in a sweet spot, capitalizing on its brand name, and riding on low penetration levels and rising aspirations of the Indian middle class.
As per a press release, Glenmark Pharmaceuticals S.A (GPSA) has entered into a license agreement with Sanofi-Aventis. GPSA is a wholly owned subsidiary of Glenmark Pharmaceuticals Limited India (GPL). Under this agreement, Sanofi-Aventis has been granted license by GPSA for the development and commercialization of novel agents to treat chronic pain. In return, Glenmark will receive US$ 20 m upfront. Along with this, the company will receive development, regulatory and commercial milestone payments. All in all such payments could reach US$ 350 m. In addition, Glenmark will receive tiered double digit royalty on sale of commercialized products.
Furthermore, Sanofi-Aventis will have the exclusive marketing rights for North America, EU and Japan. Glenmark will have the right to co-promote the product in the US and five eastern European countries. Glenmark will also have exclusive marketing rights for India and it will share co-marketing rights with Sanofi-Aventis in 10 other countries including Brazil, Russia and China. However, for the all other countries in the rest of the world, Glenmark will have exclusive marketing rights. This agreement would benefit Glenmark as it would add to its revenues and profitability.