Red is back!

The indices continue to display volatile movements. Over the past hour, the benchmark indices have gone back into the red. Though there is selective buying in FMCG, energy and select index heavyweights, the overall sentiment is far from bullish. The investor mood is still cautious.

The BSE Sensex is at 6,334 (down 34 points) and the NSE Nifty is at 1,980 (down 4 points). The rupee is trading at 43.80 to the dollar.

Ranbaxy has just announced that the New Jersey district court has asked the company and Teva to stop selling quinapril tablets, while hearing an injunction plea brought about by Pfizer (PFIZ.BO, news) Inc. Pfizer had asserted that the tablets, which have been marketed through an exclusivity relinquishment arrangement with Teva, were infringing US patents. The company has stated that while it will comply with the preliminary injunction, it will also immediately file an appeal to get the injunction lifted. Most Indian pharma majors are in the red. Dr. Reddy (REDY.BO, news) 's, Wockhardt (WCKH.BO, news) and Ranbaxy are among the key losers.

The sentiment in the FMCG sector is mixed. While majors like ITC (ITCd.BO, news) , HLL, P&G, Nestle and Tata Tea (TTTE.BO, news) are lacklustre, there is strength in select mid-cap companies like Marico, Pidilite, Colgate (COLGd.BO, news) and Essel Propack. Most of the mid-cap companies suffered sharp declines yesterday. However, investors seem to be looking at these companies favourably. Most of the mid-cap companies mentioned above are expected to decent double digit topline growth going forward. To that extent there is a visibility in terms of growth prospects. This seems to attracting the investors.

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