Indian share markets slump
With heavy selling in the index heavyweights, Indian equity markets plunged deeper into the red in the post-noon trading session. All the sectoral indices are trading in the red with realty, IT and banking stocks being the major losers.
BSE-Sensex is down 240 points and NSE-Nifty is trading down 83 points. While BSE Mid Cap is down 1.6%, BSE Small Cap index is trading down by 1.7%. The rupee is trading at 54.6 to the US dollar.
Majority of the public sector banking stocks are trading in the red with Bank of Baroda and Punjab & Sind Bank being the biggest losers. Only Canara Bank is trading in the green. As per provisional figures released by Reserve Bank of India (RBI), the banking industry recorded growth of 14% each in credit and deposits in FY13. These growth rates have fallen short of RBI's projections. RBI had forecast credit and deposit growth of 16% and 15%, respectively for FY13. Reportedly, loan demand was sluggish in FY13 due to economic slowdown. At the same deposit mobilization during the year was impacted as inflation-adjusted returns were negative due to high inflation.
Most of the domestic pharma stocks in the red with Indoco Remedies and Strides Acrolab being the major losers. Dr Reddy's has announced the launch of the drug Zoledronic acid injectable 5mg/100mg in the US. The company had received approval for this product in March 2013 from the US Food and Drug Administration (USFDA). The drug is the generic version Reclast, a brand of Novartis. Branded sales of the said drug in the US is US$ 355 m for the period ending Feb 2013. Other than Dr Reddy's, Emcure Pharma is the other company that holds approval for this version. This seems to be a low competition opportunity for Dr Reddy's. The stock of Dr Reddy's is trading up by 2.7%.
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