The rupee's appreciation of 6.4 per cent against the dollar and 12 per cent against the euro is likely to hurt the first-quarter performance of the pharmaceutical sector, indicate a results' preview by broking houses.
Tata Motors (down 1.7%) was the top loser on Sensex and Nifty, while Lupin (1.6%) gained the most.
Regulators tighten net on safety grounds.
IT majors weakened ahead of the September US jobs data and telecom stocks ended lower
India emerging as a big global destination for contract manufacturing, unlike R&D outsourcing.
ICICI Bank was the top loser after the private lender reported sharp drop in Q4 net.
If most of the top 10 Indian drug companies were less than Rs 500-crore (Rs 5-billion) turnover ones a decade earlier and were focused only on domestic business, now they are companies with annual businesses ranging from Rs 2,000-Rs 6,000 crore (Rs 20-60 billion) and with operations spanning 60-100 countries and employing 3,000-5,000 people.
Engineering major BHEL rebounded from its day's lows to end around 1% higher.
A six-member jury headed by former Securities and Exchange Board of India chairman M Damodaran will declare the winner of the award for 2009 on February 16 in Mumbai.
Sun Pharmaceutical, which is growing its dermatology and ophthalmic specialty business in the US will spend $460 million on R&D.
Infosys was the top Sensex loser along with other index heavyweights ITC and HDFC.
Government has initiated action against six pharmaceutical companies, including Cadilla, Wockhardt and Lupin, for overpricing medicines and launching unapproved formulations in the market.
United States-based drug major Forest Laboratories has sued three Indian pharmaceutical companies -- Orchid Chemicals and Pharmaceuticals, Lupin and Wockhardt -- along with four other manufacturers for coming up with imitations of patented drugs in the US.
Teva Pharmaceutical Industries Ltd has sued Indian drug makers, including Ranbaxy Laboratories and Dr Reddy's, for alleged patent violation of ingredients used in Coreg, used for treatment of cardiovascular diseases.
Results of some blue-chip companies exceeded expectations, providing additional thrust, traders said.
Even smaller companies like Torrent Pharma and Alembic file five to 10 ANDAs every year.
A key lesson for the pharmaceutical sector in this case is to not downplay the significant impact that regulatory non-compliance can have on operations.
Ranbaxy Laboratories, Dr Reddy's, Nicholas Piramal and three other Indian drug companies cut their research costs by separating the units involved in developing new drugs, thereby addressing investor concerns on low operating margins.
Retail sales of Ranbaxy Laboratories, Cipla, Nicholas Piramal, Lupin and other drug makers have jumped by over 10 per cent in the domestic market despite the sales of generics or copycat versions of patented drugs falling in leading global markets such as the US and Europe.
Nifty crosses 9,750-mark; Bharti Airtel, TCS, Wipro, Lupin and Coal India gained the most on BSE Sensex
FIIs are looking at the long-term story and initiatives of Indian pharma companies to transform themselves into global entities.
The move brings an additional 15 per cent of the retail medicine market worth over Rs 4,000 crore (Rs 40 billion) under direct price control. All domestic companies, including drug majors like Ranbaxy, Cipla, Lupin and Dr Reddy's, have syrups and tonics in their product portfolio.
Karmayog, a leading NGO which recently carried out a CSR rating of top 500 Indian companies, says that only two drug companies - Dr Reddy's and Lupin - have done work on this front. While the two firms scored three out of five, 30 other drug firms failed to perform satisfactorily. Nine of the companies, including leading ones such as Nicholas Piramal, Panacea and Glenmark did not score at all.
Generic drug sales in the US, that power the business of such leading Indian drug manufacturers as Ranbaxy, Dr Reddy's, Sun Pharma, Lupin and Zydus Cadila, will face competition soon, as big US wholesalers decide to outsource their requirements from upcoming Indian manufacturers.
Auto stocks will be in focus
Better-than-expected financial results in Q3 due to higher revenue growth and margins in key markets fuel the rally
Tainted stock broker Ketan Parekh and 8 of his associates received a blow, when the Supreme Court dismissed their appeals against a Sebi order banning them from trading for 14 years.
The increasing number of generic players tapping the US market for known molecules has resulted in pricing pressures and lean margins.
A recent court ruling in the US on allowing the declaratory judgment provision in the US patent law has come as a boost to Indian pharmaceutical companies such as Ranbaxy, Dr Reddy's, Sun Pharma and Lupin.
Indian exporters of ayurvedic drugs are finding it extremely difficult to tap this high-growth segment
As many as 15 companies across the world have lined up generic variants of Pfizer's Zoloft (Sertaline HCL), for which the exclusive six-month marketing period granted to the successful patent challenger, Teva of Israel, ends on Tuesday.
Sensex climbs higher on favourable global cues.
Among the index heavyweights, Reliance Industries ended down 1.9% while mortage lender HDFC eased 0.2%. FMCG major ITC ended down 1.3%.
In an hour-long chat on rediff.com on Thursday, A K Prabhakar, senior VP and Head -- Equity Research (Retail), Anand Rathi Financial Services Ltd, discussed the best stocks to put the investors' money in.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
The government is expected to dole out some populist policies, especially for the rural / farm sector while presenting the interim budget, given that the country is heading towards general elections over the next few months.
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