Indian stock markets open firm

Mon, 24 Nov 09:30 am

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Barring Singapore (down 0.02%), all Asian stock markets have opened on a positive note. Stock markets in China (up 1.9%) and Hong Kong (up 0.8%) were leading the gains. The Indian share markets have opened the day in the green as well. Barring stocks from FMCG sector, all the sectoral indices have opened on a positive note.

The Sensex today is up by around 154 points (0.5%), while the NSE-Nifty is up by about 44 points (0.5%). The mid cap and small cap stocks have also opened in the green with BSE Mid Cap index and BSE Small Cap index up by around 0.8% and 0.7% respectively. The rupee is currently trading at Rs 61.85 to the US dollar.

Majority of the automobile stocks have opened on a positive note with Tube investments and Eicher motors being the leading gainers in the pack. As per the financial daily, Tata Motors is planning to introduce several new technologies, including the automated manual transmission (AMT), in its commercial vehicles, since the company is looking to consolidate its position in the segment. Reportedly, the company, which has over 60% market share in the domestic commercial vehicle sector, is currently developing on its own the AMT technology. Recently, AMT has been introduced in various passenger cars, like in sedan Zest as well as Maruti Suzuki's small car Celerio. As per the Tata Motors Executive Director, the company is looking to provide AMT technology in products like the Prima trucks, Xenon XT pickup truck and light commercial vehicle Ultra. These are expected to hit the market in the next financial year. Auto gear shift vehicles have the flexibility of both manual mode and auto drive mode in the same unit, with a simple shift of gear lever. And this market is witnessing good traction in last couple of years.

Indian Pharma stocks have opened mixed with Lupin Ltd and Wockhardt Ltd leading the gains. However, Cadila healthcare and Natco Ltd were leading the losses. As per a leading financial daily, US legislature is debating on compensation for undue price hikes taken by generic companies. Reportedly, a Bill is proposed to be introduced in the US Senate by a member. This is aimed to lessen the impact on taxpayers, when drug makers raise prices at a rate greater than inflation; the companies will be required to pay the rebate on the same. At present, only branded drug manufacturers pay a rebate to Medicaid. Sharp increases in prices for many generic drugs were examined on Thursday at a Senate hearing where three global pharmaceutical companies refused to testify. Further, as per the research conducted by Centers for Medicare and Medicaid Services nearly 10% of all generic drugs have more than doubled in price since many years now. While the bill is still not passed, these trends indicate increasing challenges for the Indian pharma companies.