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At the closing bell, the BSE Sensex stood higher by 333 points, while the NSE Nifty finished up by 127 points. The S&P BSE Mid Cap & the S&P BSE Small Cap finished up by 0.9% respectively. Bank stocks gained the most, followed by consumer durables and energy stocks.
Asian markets finished broadly higher today building on Wall Street's overnight rally with shares in Japan leading the region. The Nikkei 225 is up 1.43% while Hong Kong's Hang Seng is up 0.43% and China's Shanghai Composite is up 0.22%. European markets are also higher today with shares in Germany leading the region. The DAX is up 1.23% while France's CAC 40 is up 1.13% and London's FTSE 100 is up 0.56%.
The rupee was trading at 68.16 against the US$ in the afternoon session. Oil prices were trading at US$ 53.23 at the time of writing.
Biocon share price surged 2.5% in today's trade after it was reported that the company's subsidiary - Biocon SDN BHD, Malaysia, has been awarded a three year contract from the Ministry of Health, Malaysia, for supplying recombinant human insulin (rh-Insulin) formulations manufactured at its large scale biopharmaceutical facility in Johor, Malaysia.
Biocon's rh-Insulin is Malaysia's first locally manufactured biosimilar biologic product approved by the National Pharmaceutical Regulatory Authority (NPRA), Malaysia, for commercial sales in the country. This marks the commercialization milestone of Biocon's first overseas facility in Malaysia.
Biocon SDN BHD has been awarded a MYR 300 million (amounting Rs 4.6 billion) contract to be serviced over a period of three years for supplying rh-Insulin cartridges and re-usable insulin pens under the Malaysian government's Off-Take Agreement (OTA) initiative. It seeks to encourage local manufacturing of new pharmaceutical products thus lowering the country's reliance on imports and also enhancing the exports potential. The contract is extendable for additional two years subject to approval by the Government of Malaysia.
Meanwhile, Biocon reported 65% rise in its net profit at Rs 1.71 billion for the quarter ended December 31, 2016, as compared to Rs 1.04 billion for the same quarter in the previous year. Total income of the company increased by 32% to Rs 10.91 billion for quarter under review from Rs 8.28 billion for the quarter ended December 31, 2015.
The company's strong performance was led by robust growth of our Biologics business with both insulins and biosimilar mABS gaining traction in Japan and key emerging markets.
Moving on to news from stocks in engineering sector. According to a leading financial daily, Siemens has bagged an order worth approximately Rs 3.66 billion from Oil and Natural Gas Corporation (ONGC). The order includes supply of material for overhauling of 18 Power Turbines through Zero Hour Overhaul and Time Continued Overhaul.
Siemens said the zero hour overhauling will be first of its kind in India and involves the overhaul of power turbines to zero hour status. Under the new concept of zero hour overhaul, the power turbine will perform almost as new and will be capable of a safe run of another 100,000 hours before the next overhaul. This will help in reducing down-time and increase in productivity.
Siemens share price finished the trading day up by 1% on the BSE.
In another development, BHEL in association with ABB, has bagged a project from Power Grid Corp. BHEL's scope of work is valued at Rs 13.6 billion for setting up an 800 kV, 6,000 MW HVDC link between Western Region Grid (Raigarh, Chattisgarh) and Southern Region Grid (Pugalur, Tamil Nadu).
This is the second Ultra High Voltage Direct Current (UHVDC) transmission project contract for BHEL.
BHEL share price finished up by 0.1%.
Let us take a quick look at the chart of Biocon Limited - a stock that's been prominently in the news today.
Biocon consolidated for two years from 2014 to 2016 and then finally broke out on the upside in April 2016. After the break out, it rallied strongly and is up by over 87%.
Although the stock today closed at its lifetime high, the daily candle looks a bit discouraging. The stock opened the session with a gap near the day's high, and due to some selling pressure, ended up leaving a red candle on its daily chart.
The volume spike near the all-time high also signals a red flag.
So while the stock closing at new highs is positive, the volume spike and a bearish candle signals a cautious outlook. We're now curious to see how the stock trades in days to come...so stay tuned.
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