Indian indices remain range bound

Wed, 18 Sep 11:30 am

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After a firm opening, the Indian stock markets are trading in a range. All sectoral indices except Auto and Power are trading positive. The BSE-Sensex is up 29 points while the NSE-Nifty is trading up just 6 points. The BSE Mid Cap and BSE Small Cap indices are trading up by 0.4% and 0.5% respectively. The Rupee is trading at 63.1 to the US Dollar.

Indian Pharma stocks are trading mixed today. Panacea Biotech and Wockhardt Ltd are among the top gainers. Glenmark Pharma and Sun Pharma are amongst the losers. Dr. Reddy's Laboratories' has announced that United States Food & Drug Administration (USFDA) has approved sale of bio-equivalent generic version of Vidaza - Azacitidine for injection of 100 mg/vial. Vidaza is Celgene Corp's anti-cancer drug. Azacitidine is used to treat certain types of bone marrow cancers and blood cell disorders.

As per the company, the launch of product in the market is planned in the near-term. According to IMS Health the Vidaza(R) brand had U.S. sales of approximately US$ 379 m for the last 12 months ending July 2013. This is a substantial approval for the company as it will be a stepping stone for Dr. Reddy's for driving growth through niche products. Dr. Reddy is trading 2% up today.

Most of the IT stocks are trading higher today. Wipro and Tata Consultancy Services (TCS) are among the top gainers. The legal issues facing Tech Mahindra regarding the Satyam merger refuses to go away. Nearly five years after India's biggest corporate scam broke out at erstwhile Satyam Computers, a US court has ordered fresh proceedings into charges that the IT firm had fraudulently induced a US firm Venture Global Engineering (VGE) into a partnership. Satyam was acquired by Tech Mahindra and its entire business was integrated with the new owner earlier this year.

The latest ruling by a US Appeals Court follows an earlier direction issued by a Districts Court of Michigan, which had dismissed claims made by Venture Global Engineering (VGE) against Satyam with regard to a joint venture. In its order dated September 13, the Appeals Court has reversed the judgment of the district court and has ordered further proceedings into the matter. In its appeal, VGE and the Larry J Winget Living Trust alleged that Satyam Computers had "induced" them to form a joint venture by "misrepresenting its financial stability and general suitability as a business partner." Satyam had argued at that time that VGE should have brought their claims during arbitration in 2005 itself. The case will now be heard again. Tech Mahindra is trading up by 1%.