Realty & metals weigh on the markets

Fri, 19 Nov 09:30 am

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Asian markets are trading on a mixed note. The fall in the yen has provided a breather for the Japanese markets which are trading in the green along with Indonesia and Korea. On the other hand, China and Hong Kong are witnessing selling pressure. The Indian markets have opened the day on a negative note. Stocks from realty and metals sectors are the main losers.

The BSE-Sensex is trading lower by around 69 points (down 0.3%), while the NSE-Nifty is down by about 19 points (down 0.3%). Mid cap stocks are trading in the red as well with the BSE-Midcap index down by 0.1%. Small cap stocks are trading in the positive, with the BSE-Smallcap index up by 0.1%. The rupee is trading at 45.24 to the US dollar.

India's food inflation has declined for the fifth week in a row to 10.3%. The decline in inflation is more due to the base effect rather than due to an actual decline in prices of food articles. The food index constitutes nearly 14.8% of the total wholesale price index. Consecutive declines, however, do indicate that the overall inflation may drop sharply in the months to come.

Pharma stocks have opened the day in the green. Glenmark Pharma and Sun Pharma are the major gainers. However, Ranbaxy is facing selling pressure. Sun Pharma has announced that it received US FDA approval for marketing its generic drugs for treating nasal allergies and hypertension. The approval is for its drugs Clarinex and Tiazac. Clarinex is prescribed for treating allergic inflammation of the nasal passages. The company has stated that Clarinex tablets have annual sales of nearly US$ 212 m in the US. Tiazac is used for treating high blood pressure. The drug is prescribed for hypertension as well as for chronic stable angina. The drug has an annual sale of US$ 46 m in the US.

Nalco has joined hands with JSW Steel and Jaiprakash Industries to send an expression of interest to set up an alumina refinery and aluminium smelter in Kutch area of Gujarat. The total capacity of the refinery will be 1 m tones per annum while that of the smelter would be 0.5 m tones per annum. Total cost of the project is estimates to be Rs 100 bn. The Gujarat government is inviting expressions of interest from companies for joint development of its potential reserves of minerals. The state has a potential of mining 82.5 m tones per annum of bauxite, which is the primary raw material for producing alumina. The evaluation and approval process for granting the project is expected to take four to six months. Nalco is already active in mining of bauxite. The stock is currently trading in the red along with peer Hindalco Industries. Other metal stocks are witnessing selling pressure as well.