Stock market in India rallied on 7 June 2016 after the Reserve Bank of India kept an accommodating stance in its second bi-monthly policy review for the current fiscal. RBI Governor Raghuram Rajan kept benchmark repo rate unchanged at 6.5% and CRR at 4%. The central bank also left statutory liquidity reserve unchanged. Nifty closed with a gain of 65 points at 8,266, while BSE Sensex ended with a gain of 232 points at 27,010.
On the global front, most of the Asian indices closed their day on a positive note. Hong Kong’s Hang Seng ended higher by 1.42%, while Japan’s Nikkei 225 closed with gains of 0.58%. The European indices also witnessed buying interest. The FTSE 100 was up 0.47%, France’s CAC 40 gained 1.18% and Germany’s DAX was up 1.66%. The rupee was trading at Rs 66.75 to the dollar at the time of writing.
Pharma stocks are trading mixed with IPCA Labs and Ajanta Pharma leading the gains. As per a leading financial daily, Gavis Pharmaceutical LLC, the US arm of Lupin Ltd has received a final nod from the US health regulator to launch Voriconazole tablets. The drug is used to treat infections in skin, abdomen, kidney, bladder wall and wounds.
Vfend tablets and Vfend oral suspension had sales of US$ 92.8 million and US$ 15.9 million, respectively in the US as at the end of FY16.
The company has stated that it shall commence marketing the drug in the US shortly.
Many companies including the likes of Ajanta Pharma and Zydus Cadila Pharma have received US FDA approvals to sell this drug. Hence, the competition seems to be tough in this segment.
Lupin is an India-based transnational pharmaceutical company. It is engaged in manufacturing and marketing of branded and generic formulations, and active pharmaceutical ingredients (APIs). The Mumbai-based firm has launched 9 products in the US market and received approvals for 20 products from the USFDA so far this fiscal. On an overall basis, over 160 product filings are pending for approval with the USFDA between Lupin and Gavis together. Lupin has a portfolio of 124 products in the US market.
Stock of Lupin closed the day up by around 1.3%.
Moving on to the news form the banking space. Axis Bank has raised US$ 500 million at the London stock exchange through the issue of green bonds. Green bonds are a relatively new asset class carrying a lower coupon rate and are a cheap source of finance.
The proceeds from the bonds will be invested in renewable energy, transportation and infrastructure projects. The notes have been issued at a price of 99.479 at a yield of 2.9%.
Talking about renew ables, government has an ambitious target of 100 gigawatt (GW) solar energy by 2022. The funds raised could help to achieve this mammoth goal.
USDINR trade today trading up 18 paise at 66.78 per US dollar.
Out of 1,807 stocks traded on the NSE, 616 declined and 916 advanced today.
Top 5 Nifty Gainers: Bharti Airtel (2.48%), BHEL (1.59%), ONGC (1.41%), ICICI Bank (1.24%) and HDFC (0.98%).
Top 5 Nifty Losers: Asian Paints (-1.21%), Infosys Ltd (-1.00%), Coal India (-0.68%), HDFC Bank (-0.62%) and TCS (-0.55%)
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