Mid-cap & small-cap buck trend

Wed, 7 Aug 01:30 pm

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Indian share markets recovered a bit but continued to trade below the dotted line in the post-noon trading session. Majority of the sectoral indices are trading in the green with realty, metal and oil & gas stocks being the biggest gainers. However, auto, FMCG and capital goods stocks are trading in the red.

BSE-Sensex is down 281 points and NSE-Nifty is trading down 92 points. BSE Mid Cap is trading up 0.6% and BSE Small Cap index is trading up 0.9%. The rupee is trading at 61.3 to the US dollar.

Majority of the finance stocks are trading in the green with IFCI and IDFC being the biggest gainers. As per a leading financial daily, non-banking finance company IDFC wants to diversify its asset base to tide over the slowdown in the infrastructure sector. The company is also in the race to acquire a banking licence. In the quarter ended June 2013, the company witnessed a poor loan offtake performance as it is mainly focussed on infra financing. The sanctions for the quarter declined significantly by 78% YoY and the disbursements fell by 28% YoY. The company's disbursements comprised of exposure to sectors such as energy (40% of total), followed by transportation (25%) and telecom (22%). Furthermore, the pipeline for infrastructure loans stands weak for the company. Asset quality for IDFC has not been a cause of concern till now. The Gross Non Performing Assets (NPA) for the quarter were reported at 0.32% and net NPAs at 0.2% and stand out best in the industry. However, the company has indicated that the share of NPA could rise going ahead sue to economic slowdown.

Indian pharma stocks are trading mixed, with Strides Acrolab and Fresinus Kabi being the leading gainers and Wockhardt and Dishman pharma witnessing maximum selling pressures. Lupin Ltd, recently announced that the company has acquired US rights for Alinia oral suspension. The company has signed agreement with Romark Laboratories. As per the agreement, the company has granted exclusive rights to Lupin to promote, distribute and market Alinia brand (nitazoxanide) oral suspension in the US market.

As per the company announcement, the said drug is the first thiazolide approved by the Food & Drug Administration (FDA) for the treatment of diarrhea caused by Cryptosporidium and Giardia. Alinia is indicated for the treatment of diarrhea caused by Giardia lamblia or Cryptosporidium parvum in patients 1 year of age and older. These are the two most common protozoal causes of diarrhea in the developed and developing world. Further, this is the only United States Food & Drug Administration (USFDA) approved treatment for Cryptosporidium.

Lupin had earlier stated that the company is looking out for acquisition of brands in US. This acquisition would further enhance the company's branded portfolio. The financial terms of the deal remain undisclosed. Lupin was trading down by 1.15%.