Indian stock markets continued to trade strong after a strong opening to today's trade. Barring a few IT stocks, all sectoral indices were in the green
The BSE-Sensex is trading up by 44 points and NSE-Nifty is trading strong by 14 points. BSE Mid cap and BSE Small cap indices are trading strong by 1% and 1.2% respectively. The rupee is trading at 52.72 to the US dollar.
Steel stocks are mainly trading strong led by Adhunik Metaliks and JSW Ispat. According to a leading financial daily, producers of primary steel have hiked the prices yet again. This is the third hike since January this year. The prices of long products have gone up by almost Rs 1,750 per tonne during this year. It may be noted that these steel makers supply to the construction industry. As per industry experts, slowdown in the construction industry affected demand for steel. This along with high input costs is forcing the steel makers to raise the prices.
Also, an interesting trend has been witnessed in the steel industry over the last few months. The premium at which primary producers used to sell their products as compared to the secondary steel makers is fast reducing. In fact, the items produced by secondary steel makers have become dearer. Thus, the rise in prices was inevitable. We may note here that primary producers like JSW Steel, Tata Steel, Steel Authority of India (SAIL), Essar Steel and Rashtriya Ispat Nigam Limited produce steel directly from ore. Secondary steel producers use scrap and ingots.
Pharma stocks are trading mixed with Dishman Pharma and Glenmark Pharma leading the gains while Lupin and Biocon are on the losing end. As per a leading daily, Taro Pharmaceuticals is evaluating an offer by Sun Pharma over complete buyout. Presently Sun Pharma owns 66% in Taro. Sun Pharma had made an offer in October last year announcing a cash offer of US$ 24.5 per share for the remaining stake. The Mumbai based Indian pharma company had stated that the offer price represented a premium of almost 26% over the most recent closing of Taro stock. It is expected to invest around US$350-370 m to buy the remaining stake and gain 100% ownership.