Sensex, Nifty still under pressure; auto, FMCG, pharma stocks up

Moneycontrol Bureau11:55 am Drug update: Dr Reddy's Laboratories Ltd today announced the launch of anti-fungal ointment nystatin and triamcinolone acetonide in the US market.

In a BSE filing, Dr Reddy's Laboratories Ltd said, "It has launched nystatin and triamcinolone acetonide cream USP, in the United States market, approved by the US Food and Drug Administration (USFDA)."

 The product is the generic equivalent of nystatin and triamcinolone acetonide cream, USP 1,00,000 units/g-0.1 percent manufactured by Taro Pharmaceuticals USA Inc, it added.

11:45 am Interview: Despite 50 percent of its revenues coming from Europe, Motherson Sumi's Chairman Vivek Chaand Sehgal is confident that there is not going to be any impact on the company's P/L (profit and loss statement) due to euro depreciation. The euro plummeted following the Italian Prime Minister Matteo Renzi's defeat in the Italian referendum. Sehgal says the company both buys raw materials and sells the finished goods in euro and may not be affected by a weaker euro. He adds that Motherson Sumi may instead benefit when cars are exported out of Europe. The demonetisation pain may last in the economy for a few weeks, says Sehgal. The company only deals in OEM (Original Equipment Manufacturer) products and has no cash business, so Sehgal feels the cash ban effect will be minimum on the company.11:30 am PMI data: Indian services activity dived into contraction in November after Prime Minister Narendra Modi's surprise move to withdraw high denomination banknotes led to a sharp decline in demand, a survey showed on Monday. The latest data, coupled with another last week that showed factory activity slumped as well, offers the first glimpse of the massive hit the economy is likely to take from Modi's demonetization drive. The Nikkei/Markit Services Purchasing Managers' Index sank to 46.7 in November from October's 54.5, the first time since June 2015 that the index has gone below the 50 mark that separates growth from contraction.Don't miss: Buy, sell, hold: 3 stocks to focus as market cautious ahead of key events

The market continues to be under pressure as investors are on sidelines ahead of major events lined up this week and next. The Sensex is down 29.84 points or 0.1 percent at 26200.82 and the Nifty is down 1.95 points at 8084.85. About 1261 shares have advanced, 868 shares declined, and 97 shares are unchanged.

Lupin, Bharti Airtel, HUL, M&M and ONGC are gainers while HDFC twins, TCS and Wipro are losers in the Sensex.

Gold prices dipped giving up early gains as the US dollar rose on expectations that the US Federal Reserve will raise interest rates at its policymaking meeting next week.

The losses, however, remained modest amid jitters over the resignation of Italian Prime Minister Matteo Renzi after he lost a referendum on constitutional reform.

Investors and Europe's politicians fear victory for Italy's opposition 'No' camp could cause political instability and renewed turmoil for Italy's banks, pushing the euro zone towards a fresh crisis.