Indian equity markets were trading in the red during the last two hours of trade on back of selling activity in index heavyweights. Sectoral indices displayed mixed performance. Auto and capital goods stocks were the top gainers, while losses were led by metal and FMCG stocks.
The BSE-Sensex is trading lower by 31 points and NSE-Nifty is trading down by 11 points. BSE Mid Cap and BSE Small Cap indices are trading higher by 0.3% each. The rupee is trading at 55.99 to the US dollar.
Cement stocks are trading mixed with Heidelberg Cement and Ultratech Cement being the top gainers while JK Lakshmi Cement and Samruddhi Cement were the top losers. According to ACC, demand for cement in India is expected to grow at a rate of 10% in 2012. However, prices will be under pressure due to lower capacity utilization and higher raw material costs. In particular, increase in prices of domestic coal and volatility in imported coal would pose a huge problem. As for capacity utilization rate, the same dropped lower than 80% in 2011 on back of lower demand. We may note here that cement demand grew by only 6% in 2011. To deal with the coal price issue, ACC is trying to increase the proportional usage of alternative fuels and making efforts towards optimization of coal mix.
Indian pharma stocks are trading mixed with JB Chemicals and Wockhardt Pharma being the top gainers while Elder Pharma and Orchid Chemicals were the top losers. As per a leading daily, Wockhardt has received US Food and Drug Administration (USFDA) approval to market Alfuzosin hydrochloride tablets in the US market. This tablet is used to treat enlarged prostate. As per the approval, Wockhardt can market 10 mg extended release tablets of Alfuzosin hydrochloride. Alfuzosin is the generic name for the brand Uroxatral which is marketed by Sanofi-Aventis in the American market. We may note that the total market for this product in the US is about US$ 81.5 m. Wockhardt is looking at an immediate launch of this product. The Indian pharma company will produce the Alfuzosin hydrochloride tablets at its facility in Aurangabad. This is a positive for the company and will enable it to enhance revenues from the highly competitive US generics market.