Indian equity markets slide

Mon, 5 Aug 01:30 pm

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Backed by persistent selling activity, Indian equity markets pared their gains during the post noon trading session. Various sectors were trading in red with capital goods and Power sector stocks were among the leading losers. Among the gainers, Metal and FMCG stocks witnessed maximum buying interest

BSE-Sensex is up by 7 points and NSE-Nifty is trading up by 1 point. While BSE Mid Cap is trading down by 0.45%, BSE Small Cap index is trading down by 0.15%. The rupee is trading at 60.85 to the US dollar.

Majority of automobile stocks are trading in the red with Ashok Leyland and Tata motors are the leading losers. As per the financial daily, Tata motors has cut down its workforce almost by 21% at its Pantnagar unit. Reportedly, the company expects economic slowdown will impact the company and hence cost rationalization was required. Various products of the company have witnessed decline, which were till recently doing quiet well. During June 2013 quarter, the company has cut its payroll and the staff strength from 5,838 in March 2013 to 4,630 in June 2013. Further as per Tata motors spokesperson, the total employee costs had increased by 5.4% during FY13. The company's is taking various steps to reduce the manpower cost, by decreasing workforce, both permanent and temporary. Tata motors was trading down by 2.6%.

Stocks of Indian pharma companies Indian Pharma - Live Stock Quotes and Analysis Update from Equitymaster.com and MNC pharma MNC Pharma - Live Stock Quotes and Analysis Update from Equitymaster.com are trading mixed. Among the MNC pharma companies, GSK pharma and Sanofi India were the top losers, while Merck Ltd and Pfizer India were the top gainers. Among the Indian pharma companies Wockhardt Ltd and Glenmark Pharma are the leading losers while, Dishman pharma and Strides Acrolab were the leading gainers. As per financial daily, Business standard has conducted survey, in order to find whether the drugs in the market are being sold as per revised prices directed by the government. However, the investigation has found that drugs by several pharma companies, both MNC and Indian pharma were still selling the drugs at much higher price than that was notified by the regulator NPPA (National pharmaceutical pricing authority). Reportedly, companies like Cipla, GSK, Pfizer India, Sanofi India etc drugs were sold at the higher price. As per notification, companies were bound to comply with the new prices and sell the drugs at the new MRP within 45 days from the date of such notification. Further, various trade sources have mentioned that most companies were to yet to replace previous stocks with the newly priced ones.

The survey also asked for the NPPA comments on the companies who were still selling their drugs at the higher price. C. P. Singh, NPPA chaiman mentioned that the companies which do not implement the law, they will be penalized for overcharging consumers. Reportedly, With the new pricing policy, the prices of drugs are expected to drop by up to 90% in some cases, while for others it would range between 10%-50%.