Indian equity markets languished in the red throughout the trading session today. The indices began the day's proceedings on a weak note and thereafter selling pressure intensified pushing the indices deep into the red. There was no respite in the later hours either and the indices closed well below the dotted line. While the Sensex today closed lower by around 120 points, the NSE-Nifty today closed lower by 38 points. The BSE Mid Cap and the BSE Small Cap were not spared either as both closed marginally lower. Losses were largely seen in Oil and gas and banking stocks.
As regards global markets, Asian indices closed mixed today while European indices have opened in the red. The rupee was trading at Rs 55.28 to the dollar at the time of writing.
Most pharma stocks closed in the red today with the key losers being Dr.Reddy's (NYSE:RDY) and Ranbaxy (OTC:RBXZF). Dr. Reddy's announced results for the first quarter ended June 2012 . Total revenues grew by 28% YoY led by healthy growth in the key markets of North America, Russia and other emerging markets in the global generics segment. In this, North America saw a growth of 27% YoY in sales in US$ terms. This was largely driven by new product launches of clopidogrel, OTC lansoprazole, and was also supported by other key products. However, the company did witness regular year-on-year price declines in the existing product basket. The company now has cumulatively 73 abbreviated new drug applications (ANDA) pending for approval with the U.S. FDA of which 36 are Para IVs and 6 are with first-to-file (FTF) status. Revenues form Russia and other CIS markets grew by 38% YoY led by new product launches, volume increase across key brands and the over-the-counter (OTC) portfolio. Revenues from India were up 19% YoY. Europe did well to grow by 14% YoY. Revenues from Germany especially grew by 17% in euro terms on account of products supplied under the AOK tender won last year. Growth in net profits was in tandem with the growth in sales at 28% YoY.
As per a leading business daily, after the deadly riot at Maruti Suzuki's plant at Manesar, the latter faces the prospect of a lengthy shut down that could cost it US$ 15 m a day and disrupt supplies of its most popular hatchback notably Swift. It must be noted that Maruti Suzuki had a rather forgettable FY12 wherein a prolonged strike at the same plant wreaked havoc on the company's fortunes. One major bone of contention was that half of the workers employed there were contract workers who were paid lesser than permanent employees for the same work done. It did not help that this development coincided with a slowdown in the economy and consequently the auto sector. The issue since then was resolved and thus there was a pickup in sales volumes for the company. While all the 3,000 workers are likely to be detained by the police for investigation, the state government of Haryana, where the plant is located, is contemplating a prolonged shut down of the factory. This is bound to impact the company's performance in the near term. The stock of Maruti was battered on the bourses yesterday but closed higher by 2% today on value buying.