Indian share markets open in red

Wed, 29 Aug 09:30 am

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   11:30 am   

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Most of the Asian stock markets have opened the day on a positive note with markets in Japan (up 0.3%), Taiwan (up 0.4%) and Singapore (up 0.3%) leading the gains in the region. However, the stock markets in China (down %) and Indonesia (down 0.4%) have opened in red.

The Indian share market indices have opened the day in red. The sectoral indices are trading mixed with stocks in pharma and FMCG sector leading the pack of gainers while metal and Auto stocks have witnessed maximum losses.

The Sensex today is down around 42 points (0.2%), while the NSE-Nifty is down by around 6 points (0.1%). Mid stocks have opened in the red with the BSE Mid Cap index down by around 0.1%. However, stocks in the BSE Small Cap index have opened flat (up 0.03%). The rupee is trading at Rs 55.68 to the US dollar.

The stocks in the Pharma sector have opened in green led by J.B Chemicals and Dishman Pharma. As per a leading financial daily, Sun Pharmaceuticals Ltd's subsidiary Caraco has received US Food and Drug Administration's (USFDA) approval to resume manufacturing operations for two drugs. The approval was received after inspections of facilities at in Detroit and Wixom, Michigan. It was in 2009 that the regulator had seized all drugs manufactured by Caraco at its Michigan facility following repeated violations of manufacturing standards. The same year Caraco had entered into a consent decree with USFDA. The regulator had earlier this year carried out inspections and subsequent to corrective action, has determined Caraco to be in compliance with relevant paragraphs in the Consent decree. As per the company management, the manufacturing of other products from these sites, including those pending approval with the regulator, will be subject to similar rigorous approval procedure. Hence, the increase in production at these sites and resultant revenue contribution is expected to be gradual. As far as other requirements of the same Consent Decree are concerned, Caraco is required to now work with an external auditor conducting regular inspections for an extended period.

The stocks in the Engineering sector have opened on a mixed note with Emco Ltd and Honeywell Automation Ltd leading the pack of gainers while Voltamp Tranformers Ltd and Jain Irrigation Ltd witnesses losses. As per a leading financial daily, Larsen & Toubro Ltd (L&T) has received orders worth Rs 10 bn in the month of August 2012. Almost 50% of these orders are bagged by its water and effluent treatment business unit from public health and engineering department, Rajasthan. The power transmission and distribution business has got a Rs 1.7 bn order from the United Arab Emirates (UAE) for construction of 11 KV distribution network and all associated works. Besides, the company's Construction division has secured additional orders worth Rs 3.2 bn from various ongoing projects in buildings and factories IC and infrastructure IC.