Indian equity markets that had opened on a negative note today turned positive in the last few minutes on account of a rate cut announcement by the Indian central bank.
BSE-Sensex is up by 78 points and NSE-Nifty is up by 34 points. BSE Mid Cap index is trading higher by 0.7% and BSE Small Cap index is trading higher by 0.3% respectively. The rupee is trading at 53.69 to the US dollar.
Power stocks are trading on a mixed note with KSK Energy and Neyveli Lignite leading the gains while Torrent Power and Adani Power are facing maximum selling pressures. According to a leading financial daily, National Thermal Power Corporation (NTPC)'s, Rs 11,400 crore Darlipali power project and the linked Dulanga coal mine in Orissa has been held up for want of land possession and other clearances from the State Government. Chief Minister of Orissa, Mr. Naveen Patnaik assured the Chief of NTPC in a meeting held on November 22, 2012 about the transfer of land by December 10, 2012, but still nothing seems to happen. NTPC finalised the main plant equipment order with Bharat Heavy Electricals (BHEL) in November 2011 and thus 14 months have elapsed without the projects moving beyond the initial stages due to land not being made available. Some sources in the Union Power Ministry claim that the delay faced by the power project could have been because the State Government was more focused on clearing projects inked by the private sector. However, Orissa Government officials claim that the issues are merely procedural in nature and they are making efforts to expedite the project.
Indian Pharma stocks are also trading on a mixed note with Fresenius Kabi Onco and Natco Pharma leading the gains while Panacea Biotech and Wockhardt Ltd leading the losses. The management of Glenmark Pharma has said that the Company may soon enter into the injectible oncology segment in the US and Europe. Glenmark already has a good presence in the dermatology and oral contraceptives segments in the US and the foray into injectible oncology would be the drug maker's entry into a third niche segment in the US. The US market for injectibles is expected to be at around US$ 20 billion and oncology is a significant part of the market. There are few players in the injectible oncology segment and thus the margins are expected to remain high. The Company would manufacture these products at its facility in Argentina, which has already received the go-ahead from the European Drug Authorities. However, the clearance from US authorities is still pending. Glenmark has filed an Abbreviated New Drug Application during July-September quarter, 2012 and a couple more in the October-December quarter, 2012.