Indian equity markets recovered from early morning losses and traded in the positive during the last two hours of trade. Sectoral indices traded mixed with IT, banking and healthcare leading the gains while FMCG and realty were on the losing side.
The BSE-Sensex is trading higher by 61 points and NSE-Nifty is trading higher by 16 points. BSE Mid Cap and BSE Small Cap indices are trading up by 0.2% and 0.4% respectively. The rupee is trading at 53.61 to the US dollar.
Indian pharma stocks are trading strong led by Wockhardt Limited and Piramal Enterprises. As per a leading daily, Sun Pharma might soon have to stop exporting its cancer drug, Lipodox to the US. This is because Johnson & Johnson's (J&J) cancer drug Doxil will now be made available for the US markets again. Earlier Johnson & Johnson was barred from supplying its cancer drug after US health regulators had found deficiencies in the production facility of the company's contract manufacturer, Ben Venue Laboratories. This resulted in shortage of the drug, used in treatment of ovarian, bone marrow and AIDS-related skin cancer. Hence, the US Food and Drug Administration (FDA) had exercised its authority to import Lipodox replacement from Sun Pharma under a temporary agreement even though Sun has not yet received full approval for Lipodox sale in the US. However, with J&J back in the market, Sun Pharma might have to pull back its supplies as it has not yet got full approval.
Auto stocks are trading in the red led by Mahindra Forgings and NRB Bearings. According to a leading financial daily, Bosch Limited is planning to double its centres to up to 3,000 outlets in the next three years. The company has recently forayed into two-wheeler servicing and has opened 11 Express Bike Service (EBS) outlets in Coimbatore and Delhi. Currently Bosch operates a total of 1,500 service centres for different types of vehicles. Of these, 500 are for passenger vehicles, while 800 are for commercial vehicles and 200 are for other types of vehicles. Last week, Bosch Automotive Aftermarkets had launched 100 service centres in North India with an aim of bridging the large gap in service network in the country. These centres will provide service to multi-brand vehicles across different segments.