Indian benchmarks have drifted deeper into the red terrain and extended their losses to close to a percent point in the Wednesday afternoon session of trade as selling gathered greater force in the hour gone by amid broad based position squaring across the board. The frontline indices drifted way below their psychological 5,400 and 18,000 levels as investors are increasingly trimming down positions from heavyweight names like DLF from the high beta realty pocket which shaved off close to four percent points after reporting worse than expected fourth quarterly earnings numbers. While, the information technology majors like TCS, Infosys and Wipro too are trading with large cuts in the range of 1.50% to 2.50%. Leads from markets across the globe too remained discouraging as majority of Asian equity indices exhibited somber trend while the European counterparts too got off to a pessimistic opening, giving no upside triggers to the local bourses. The overnight bounce back in international crude oil prices too does not seem to have gone down well with the local investors. The only respite came from Consumer Durables and Healthcare pockets which traded with 0.61% and 0.11% gains respectively. While some individual names like Jindal Steel, Tata Motors and HDFC Bank too have managed to keep their heads above the water.
Moreover, the broader markets too succumbed to the intense selling pressure exerted on the heavyweights and the midcap index slipped by 0.57% and the smallcap index dropped 0.42% points. The market breadth on the BSE was in favor of declines in the ratio of 972:1470 while 119 scrips remained unchanged.
The BSE Sensex declined 150.18 points or 0.83% at 17,861.79. The index touched a high and a low of 17,976.36 and 17,840.45 respectively.
The BSE Mid-cap index shed 0.57% and Small-cap index receded 0.42%.
On the BSE sectoral front, Consumer Durables up 0.61% and Healthcare up 0.11% remained the only gainers.
While, Realty down 1.80%, IT down 1.68%, Capital Goods down 1.48%, Teck down 1.43% and Power down 0.74% were the major laggards in the BSE sectoral space.
The top gainers on the Sensex were Jindal Steel up 1.12%, Tata Motors up 0.58% and HDFC Bank up 0.08%.
On the flip side DLF down 3.91%, TCS down 2.15%, L&T down 2.12%, RCom down 2.06% and Bajaj Auto down 1.67% were the major losers on the index.
Meanwhile, the Indian Pharmaceutical industry has been witnessing phenomenal growth in recent years, driven by rising consumption levels in the country and strong demand from export markets. The pharmaceutical industry in India is estimated to be worth about $10 billion, growing at an annual rate of 9 percent. There are around 10,000 pharmaceutical manufacturers in India, producing bulk drugs and formulations, of which some 7,000 are SMEs, contributing 35 percent of the total domestic turnover of Rs 45,000 crore.
In order to enhance the performance in the domestic and export markets, the small and medium enterprises (SMEs) in the pharma sector are looking for government support on technology upgrade in manufacturing, brand promotion and marketing. The marketing and regulatory constraints are putting pressure on SMEs growth. To overcome this, the SMEs need financial support from the government. The opportunity is mainly in contract manufacturing, for both MNCs operating in India and Indian companies, which are looking to outsource manufacturing activities for the domestic market and focus on exports to regulated markets like the US and Europe. For which the SMEs first have to upgrade their capabilities to comply with manufacturing standards like Good Manufacturing Practices (GMPs) set by the Indian government and the World Health Organization (WHO).
Upgrading facilities according to the WHO-GMP and Indian GMP standards needs liberal funding from the government and some financial incentives, but without so many restrictions. The government has implemented financial assistance programmes like the Credit Linked Capital Subsidy Scheme (CLCSS) for technology up gradation of small-scale industries to enable them to comply with GMP standards with the revised Schedule M norms under the Drugs and Cosmetics Act. Besides, the government also announced a Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) that provides a 5 percent interest subsidy for SMEs to upgrade their facilities to WHO-GMP standards.
The SMEs also face the challenge of eligibility barriers, including fixed turnover limits and ORG rankings set by institutional buyers in their bidding process for medicine procurement. Small enterprises, which mainly rely on government and institutional supplies, could perform well if these restrictions are removed. Further, the government could also provide SMEs with soft loans for brand promotion.
The MSMEs constitute over 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. The contribution of SMEs to pharmaceutical units, output, investment, and employment is considerably higher than many other sectors. In the year 2011-12, the Indian domestic pharma market is expected to grow at a compounded annual growth rate (CAGR) of nearly 16%. Export market is also expected to grow much faster than the domestic market. The S&P CNX Nifty wilted 42.20 points or 0.78% at 5,352.65. The index touched high and low of 5,389.10 and 5,343.95, respectively.
The top gainers on the Nifty were Sun Pharma up 1.82%, Cairn up 1.45%, Kotak Bank up 1.29%, Jindal Steel up 1.18% and Tata Motors up 0.91%.
On the other hand, DLF down 3.99%, Tata Power down 2.33%, BPCL down 2.27%, R Capital down 2.20% and L&T down 2.19% were the major losers on the index.
On the Asian front, Shanghai Composite plunged by 0.99%, Hang Seng declined 0.27%, Jakarta Composite fell 0.35%, Nikkei 225 shed 0.57%, Straits Times dropped 0.27%, Seoul Composite plummeted 1.26% and Taiwan Weighted inched down 0.34%.
On the flipside only KLSE Composite added 0.17%. The European markets have opened a negative note as the France's CAC 40 slipped 0.60%, Germany's DAX decreased 0.80% and London's FTSE 100 declined 0.52%.
Moreover, the broader markets too succumbed to the intense selling pressure exerted on the heavyweights and the midcap index slipped by 0.57% and the smallcap index dropped 0.42% points. The market breadth on the BSE was in favor of declines in the ratio of 972:1470 while 119 scrips remained unchanged.
The BSE Sensex declined 150.18 points or 0.83% at 17,861.79. The index touched a high and a low of 17,976.36 and 17,840.45 respectively.
The BSE Mid-cap index shed 0.57% and Small-cap index receded 0.42%.
On the BSE sectoral front, Consumer Durables up 0.61% and Healthcare up 0.11% remained the only gainers.
While, Realty down 1.80%, IT down 1.68%, Capital Goods down 1.48%, Teck down 1.43% and Power down 0.74% were the major laggards in the BSE sectoral space.
The top gainers on the Sensex were Jindal Steel up 1.12%, Tata Motors up 0.58% and HDFC Bank up 0.08%.
On the flip side DLF down 3.91%, TCS down 2.15%, L&T down 2.12%, RCom down 2.06% and Bajaj Auto down 1.67% were the major losers on the index.
Meanwhile, the Indian Pharmaceutical industry has been witnessing phenomenal growth in recent years, driven by rising consumption levels in the country and strong demand from export markets. The pharmaceutical industry in India is estimated to be worth about $10 billion, growing at an annual rate of 9 percent. There are around 10,000 pharmaceutical manufacturers in India, producing bulk drugs and formulations, of which some 7,000 are SMEs, contributing 35 percent of the total domestic turnover of Rs 45,000 crore.
In order to enhance the performance in the domestic and export markets, the small and medium enterprises (SMEs) in the pharma sector are looking for government support on technology upgrade in manufacturing, brand promotion and marketing. The marketing and regulatory constraints are putting pressure on SMEs growth. To overcome this, the SMEs need financial support from the government. The opportunity is mainly in contract manufacturing, for both MNCs operating in India and Indian companies, which are looking to outsource manufacturing activities for the domestic market and focus on exports to regulated markets like the US and Europe. For which the SMEs first have to upgrade their capabilities to comply with manufacturing standards like Good Manufacturing Practices (GMPs) set by the Indian government and the World Health Organization (WHO).
Upgrading facilities according to the WHO-GMP and Indian GMP standards needs liberal funding from the government and some financial incentives, but without so many restrictions. The government has implemented financial assistance programmes like the Credit Linked Capital Subsidy Scheme (CLCSS) for technology up gradation of small-scale industries to enable them to comply with GMP standards with the revised Schedule M norms under the Drugs and Cosmetics Act. Besides, the government also announced a Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) that provides a 5 percent interest subsidy for SMEs to upgrade their facilities to WHO-GMP standards.
The SMEs also face the challenge of eligibility barriers, including fixed turnover limits and ORG rankings set by institutional buyers in their bidding process for medicine procurement. Small enterprises, which mainly rely on government and institutional supplies, could perform well if these restrictions are removed. Further, the government could also provide SMEs with soft loans for brand promotion.
The MSMEs constitute over 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. The contribution of SMEs to pharmaceutical units, output, investment, and employment is considerably higher than many other sectors. In the year 2011-12, the Indian domestic pharma market is expected to grow at a compounded annual growth rate (CAGR) of nearly 16%. Export market is also expected to grow much faster than the domestic market. The S&P CNX Nifty wilted 42.20 points or 0.78% at 5,352.65. The index touched high and low of 5,389.10 and 5,343.95, respectively.
The top gainers on the Nifty were Sun Pharma up 1.82%, Cairn up 1.45%, Kotak Bank up 1.29%, Jindal Steel up 1.18% and Tata Motors up 0.91%.
On the other hand, DLF down 3.99%, Tata Power down 2.33%, BPCL down 2.27%, R Capital down 2.20% and L&T down 2.19% were the major losers on the index.
On the Asian front, Shanghai Composite plunged by 0.99%, Hang Seng declined 0.27%, Jakarta Composite fell 0.35%, Nikkei 225 shed 0.57%, Straits Times dropped 0.27%, Seoul Composite plummeted 1.26% and Taiwan Weighted inched down 0.34%.
On the flipside only KLSE Composite added 0.17%. The European markets have opened a negative note as the France's CAC 40 slipped 0.60%, Germany's DAX decreased 0.80% and London's FTSE 100 declined 0.52%.
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