Indian equity markets have continued in green during the previous two hours of trade. The most noticeable upward movements have been witnessed in the IT and auto sectors while realty and oil and gas have faced the maximum selling pressures.
Steel stocks are all trading in the green with Tayo Rolls and Adhunik Metals leading the gains. According to a leading financial daily, Steel Authority of India Ltd (SAIL) has lined up investments of Rs 103 bn to double its captive iron ore capacity to 45 m tonne. The biggest chunk of the investment, approximately amounting to Rs 65 bn has been earmarked for the Company's Rowghat mine in Chattisgarh and Gua mine in Jharkhand. The Rowghat mine is critical for serving the captive needs of SAIL's Bhilai Steel Plant. Production is expected to start within the next 2-3 years, however, Rowghat is an area prone to Maoist threats and the Union Government has agreed to deploy five battalions of CRPF and BSF personnel to counter any possible security threats. Approximately Rs 30 bn has been earmarked for investments in the Gua mines, where SAIL plans to set up a 4 m tonne pellet plant and a 10 m tonne benefaction unit to cater to the needs of IISCO Steel Plant at Burnpur. SAIL's stock is trading up by 0.46%.
Indian Pharma stocks are trading on a mixed note with Ranbaxy Labs and Panacea Biotech leading the gains while Cipla and Piramal Enterprises are leading the losses. According to a leading business daily, Ranbaxy has resumed production of its generic drug Lipitor for supply to the US market. The announcement comes after almost three and a half months when Ranbaxy had recalled the drug from the American retail market as it feared tiny glass particles to be included in the circulated drugs. Ranbaxy has stated that it has been working with US Food and Drug Administration (USFDA) to identify and implement multiple corrective and preventive actions. The drug, which in medical parlance is known as Atorvastatin earned close to US$50 m in the third quarter of 2012 and the Company is expecting to earn at least US$ 20-25 m in the fourth quarter of 2012. Ranbaxy's stock is trading up by 3.8%.