The Indian indices shot up on Wednesday tracking a strong rally in equity markets across the globe. Sentiment got a boost after US home sales data supported the consensus view that the economy may be strong enough for the Federal Reserve to raise interest rates in the coming months. Besides, hopes of above normal rains in the upcoming monsoon season kept the sentiment high too. Nifty closed with again of 186 points at 7,935 while Sensex ended with again of 576 points at 25,881.
Buying activity was witnessed across majority of the pharma stocks with Indoco Remedies and Torrent Pharmaleading the gains. Shares of Dr. Reddy’s Laboratories finished the trading day on an optimistic note (up 1.3%) after it was reported that the company has entered into the branded consumer health arena through the acquisition of six over-the-counter (OTC) brands from Ducere Pharma, including Doan’s, Bufferins, Nupercainal Ointment, Cruex Nail Gel, Comtrex and Myoflex.
These legacy products enjoy strong brand equity built over several decades. The company is extremely excited to be entering the branded consumer health arena through these brands and embarking upon the next avenue of growth for our OTC business in the US.
Recently, the Indian Health Ministry announced a ban on 344 fixed dosage combination (FDC) drugs. The ban came after an expert committee’s recommendation. Pharma companies will have to suspend the manufacturing and sale of drugs that fall into this category, including cough syrups, analgesics, and antibiotic combinations. In a recent edition of The 5 Minute WrapUp Premium, we explained how FDCs pose a new challenge for the pharma companies(Subscription Required).
Moving on to news from the engineering sector. As per a leading financial daily, Bharat Heavy Electricals(BHEL) has successfully commissioned the first 800 MW Supercritical thermal unit in Karnataka, which is also the highest rating unit in the state. The unit has been commissioned at the 2×800 MW Yeramarus Thermal Power Station (TPS) located in Raichur district of Karnataka. Yeramarus is being developed by Raichur Power Corporation (RPCL) – a Joint Venture of Karnataka Power Corporation (KPCL) and BHEL.
The second unit of this project is also in an advanced stage of construction and is expected to be commissioned shortly. BHEL’s scope of work for the project includes design, engineering, manufacture, supply, erection and commissioning of state-of-the-art supercritical Boiler and Turbine Generators along with associated civil works and agreed Balance of Plant packages.
Engineering stocks finished the day on a positive note with L&T and BHEL leading the gains.
USDINR trade today trading up 15 paise at 67.31 per US dollar.
Out of 1,812 stocks traded on the NSE, 1046 declined and 503 advanced today.
Top 5 Nifty Gainers: L&T (9.50%), BHEL (1.71%), GAIL (1.63%), ONGC (1.38%) and Hero Motocorp (1.90%).
Top 5 Nifty Losers: Sun Pharma (-1.42%), NTPC (-1.41%), SBI (-0.71%), Cipla (-0.49%) and TCS (-0.46%)
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