Indian equity markets continued to trade in the positive territory during the post noon trading session. All the sectoral indices are trading in green. The most noticeable upward movement is being witnessed in the stocks from capital goods and auto sectors.
Majority of the automobile stocks are trading in the green with Tata Motors and Eicher Motors being the biggest gainers. As per a leading financial daily, after nine consecutive months of downfall, sales of domestic passenger cars grew by 15.4% YoY to 1.33 lakh units in August. However, as per Society of Indian Automobile Manufacturers (SIAM), the growth has come on a low base arising due to the month-long lock-out at Maruti Suzuki's Manesar plant last year. According to SIAM, the domestic automobile market continues to face tough conditions with demand remaining sluggish on account of high interest rates and fuel costs. The association feels that the positive growth in August is unlikely to be sustained in September with the recovery expected only over the next couple of quarters and FY14 ending on a negative note.
In August, Maruti Suzuki doubled its domestic car sales to 63,499 units mainly as its car sales were adversely impacted last year by the lockout following a violent labour unrest. Hyundai Motors clocked a marginal rise to 28,281 units during the month. However, Tata Motors and Mahindra & Mahindra saw their sales fall by 50.6% and 25.5% respectively for the month.
Most of the Indian pharma stocks are trading in the green with Panacea Biotech and Wockhardt Ltd being amongst the leading gainers. As per the financial daily, Avanir pharmaceuticals, a US based company has entered into patent litigation settlement with Wockhardt Ltd. The said settlement is for its drug Nuedexta. In 2011, Wockhardt had filed an ANDA (abbreviated new drug application) along with a paragraph IV (Para IV). Wockhardt had challenged various patents of Nuedexta drug, in US. However both the companies have now entered into settlement. The settlement agreement grants Wockhardt the right to begin selling a generic version of Nuedexta on July 30, 2026, or earlier under certain circumstances. Both the companies will also be filing a stipulation and a court order for dismissal of the litigation. Wockhardt was trading up by 20% at the time of writing