Persistent buying activity led the Indian equity markets to rise steadily during the post noon trading session. Buying interest is being witnessed in stocks across the board with auto, Information Technology and realty stocks leading the pack of gainers.
The Sensex today is trading higher by about 170 points (up 1%) while the NSE-Nifty is trading higher by about 55 points (up 1%). Midcap and smallcap stocks are also trading firm with the BSE Mid Cap and BSE Small Cap indices trading higher by about 0.5% each. The rupee is trading at 55.27 to the US dollar.
Indian Pharma stocks have been trading mixed with Torrent Pharmaceuticals, Aurobindo Pharma, Panacea Biotech and Glenmark Pharma leading the pack of gainers. However, Strides Acrolab and Cadila Healthcare are trading in the red. As per a leading financial daily, Ranbaxy Laboratories Ltd may have to take some hit on its revenues as the company might have already given up the idea of launching the generic version of blockbuster sleep disorder drug Provigil. The generics of Provigil are currently enjoying its lucrative six-month marketing exclusivity. And Ranbaxy too could have share this period with other pharma company it launches the drug before October 5. However, the company seems to be not doing so.
Industry experts are of the view that Ranbaxy has already forfeited marketing exclusivity for the generic version of Provigil. The company had done the same for three drugs without disclosing the identity of the drugs as a part of its regulatory settlement with US authorities. Experts think that forfeiting on the right on just Provigil could impact the topline of the company by around US$ 200 m. However, as per the company management all this would not have any significant impact the company's financial. The company has plans for launching generic versions of some diabetes and Hypertension related drugs. The stock of the company was trading flat.
Auto stocks are currently trading firm led by Escorts, Tata Motors and Bajaj Auto. It is reported that Maruti Suzuki is planning to build low cost houses for its blue collar employees in an attempt to improve their living conditions. As per the company's chairman, Maruti is looking for land to build housing units. It is believed that the company is planning to build a minimum of 1,500 flats in Haryana and also has similar intentions for Gujarat as well. Maruti is in the process of setting up a new unit in the latter. The management expects this step to improve the relations between the company and the workers. Given that the company has been facing a lot of issues relating to the work force where in it has seen recurring plant shut downs at Manesar.