The Indian markets surged higher as buying activity increased during the final hour of trade. The BSE-Sensex ended with gains of about 290 points or 1%, while NSE-Nifty closed higher by about 75 points or 0.9%. Barring stocks from the information technology and metals spaces, gains were seen across the board with banking and capital goods stocks leading the pack. Midcaps and smallcaps closed the day on a firm note as well, with their respective indices up by about 0.8% each.
Asian stocks ended firm, while stocks in Europe were trading weak. The rupee was trading at Rs 61.46 to the dollar at the time of writing.
Auto Stocks were in demand today with Tata Motors and Ashok Leyland leading the pack of gainers. Passenger car manufacturer Maruti Suzuki ended the day on a firm note today on the back of company reporting a good set of results for the quarter ended December 2014. The company reported a profit growth of 18% YoY while revenues were up by about 15% YoY. As per the company, it was the higher volumes coupled with cost reduction efforts as well as favourable forex movement which led to a faster rise in profits. Sales volumes for the quarter were higher by 12% YoY at about 323,911 units as compared to 288,151 units in the same period last fiscal. From this, domestic sales formed about 91% of volumes (295,202 units) as against 92% or 268,185 units in the same period last fiscal, while exports formed the balance. Maruti closed higher by about 2.2% today.
Stocks of pharmaceutical companies ended the day on a firm note with Cipla and GSK Pharma leading the pack of gainers. As per as leading business daily, drug major Ranbaxy has stated that the US Food and Drug Administration (FDA) has forfeited the 180 day exclusivity of its tablets which are used to treat stomach and esophagus problems. The company has stated that it would be pursuing all legal routes to preserve its rights. It is believed that the US market size of this drug (Nexium) is approximately US$ 2 bn and since Ranbaxy was holding 6-month exclusivity for this drug, this was an important opportunity for Ranbaxy.