Indian Markets remain volatile

Fri, 30 Oct 01:30 pm

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After opening the day on a flat note, the Indian Indices shot up. However they failed to hold this momentum and are currently trading in the red. Sectoral indices are trading mixed with stocks from the banking sector leading the gains and FMCG sector leading the losses.

The BSE-Sensex is trading down by 51 points (down 0.2%) and the NSE-Nifty is trading down by 10 points (down 0.1%). The S&P BSE Midcap index is trading up by 0.5% while the S&P BSE Smallcap index is trading flat. Gold prices, per 10 grams, are trading at Rs 26,560 levels. Silver price, per kilogram, is trading at Rs 36,480 levels. Crude oil is trading at Rs 2,994 per barrel. The rupee is trading at 65.19 to the US$.

Pharma stocks are trading on a mixed note with Glenmark Pharma and Dishman Pharma leading the gains. Drug maker Dr Reddy's Laboratories Ltd has reported its results for the second quarter ended September 30, 2015.

The company has posted a 26% jump in its consolidated net profit at Rs 7.2 billion for the quarter on a YoY basis. This is the first time in the company's history that the consolidated net profit has crossed Rs 7 billion.

Total sales increased by 11% YoY to Rs 39.8 billion. Sales of generic drugs in North America rose 32% to Rs 18.56 billion. The same was led by sustained performance of the injectable franchise, and market-share gains in key molecules. The North America region contributes about 60% of total generic drug sales to the company. India sales grew 14% driven by the full integration of the acquired Belgian firm UCB's products portfolio. However, sales from Russia fell 29% YoY mainly on account of currency depreciation and ongoing macroeconomic uncertainty in the country.

Research and Development (R&D) spending rose 9% YoY as the company invested more in the development of biosimilars and complex generic drugs.

Presently, the stock of Dr Reddy's Laboratories is trading up by 1.7%.

Textile stocks are trading mixed with Pioneer Embroideries leading the gains and Welspun India leading the losses. Grasim Industries Ltd, part of the Aditya Birla Group, has reported 17% rise in its consolidated net profit in the September quarter. The same was aided by better operational performance. Net revenue for the company rose 6% to Rs 83.9 billion on a YoY basis. Further, the consolidated numbers also reflect its stake in subsidiary UltraTech Cement Ltd.

The consolidated EBITDA rose 16% to Rs 14.8 billion on a YoY basis. The firm reported Rs 2.1 billion EBITDA for its viscose staple fibre (VSF) business. This was recorded 40% higher from a year ago period. EBITDA for its chemical business rose 17% to Rs 930 million. The cement business reported a 12% rise in EBITDA to Rs 11 billion.

The company said that it would continue to focus on expanding its domestic markets through product development activities by working closely with brands and retailers.

Scrip of the company is trading up by 2.2%.