Dear Reader: I'd like to extend to you my warmest wishes on behalf of the entire Equitymaster family. May the special occasion of Deepawali fill you with happiness and prosperity! And May you have A Wonderful New Year too! - Rahul
The Indian stock markets started the day on a positive note. The indices traded above par for a good portion of today's trading session. However, towards the end of trade today, the indices saw a slump. In the final hour of trade the indices moved firmly into the red. The BSE-Sensex closed negative, lower by around 162 points (down 0.9%). The NSE-Nifty also closed lower by around 57 points (down 1%). The smaller indices also had a bad day on the bourses. The BSE Mid Cap index closed 0.9% lower and the BSE Small Cap closed 1.1% lower in trade today. Realty and banking stocks saw a bulk of the losses today. Software stocks however saw some gains.
As regards global markets, Asian indices had a mixed outing today. European indices opened the day weak. The rupee was trading at Rs 55.13 to the dollar at the time of writing.
WPI inflation for the month of October 2012 eased marginally to 7.45% from 7.81% in the previous month. However, stickiness is still evident since the inflation continues to register above the 7% mark. It has continued to do so for the last eleven months. However it has eased off from the 9.87% levels seen last October. However inflation may spike will December 2012 due to higher food prices, commodity prices and fuel price hikes. If inflation continues on its downward trajectory we may even see some good news in terms of rate cuts from the RBI.
Dr Reddy's Laboratories (DRL) and the Netherlands-based OctoPlus, a speciality pharmaceutical company, have entered into a conditional agreement in connection with an intended public offer by DRL or a wholly owned subsidiary of DRL for all issued and outstanding ordinary shares in the capital of OctoPlus. This is at an offer price of EUR 0.52 (cum dividend) in cash for each OctoPlus share. It is expected that the offer will be launched mid December 2012. If launched, the offer period will run for at least eight weeks and no more than ten weeks. Closing of transaction is expected to occur in first quarter of 2013, the company stated. Last month, Dr Reddy's announced that it would acquire OctoPlus for about EUR 27.4 million (about Rs 1.9 bn).