Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Markets Remain Volatile
Tue, 2 Feb 01:30 pm

The Indian Equity markets were trading close to the dotted line in a volatile trade as Reserve Bank of India Governor Raghuram Rajan chose to keep the policy repo rate unchanged on inflation concerns. Sectoral indices are trading mixed with stocks from the IT sector leading the gains and metal sector leading the losses.

The BSE Sensex is trading down by 4 points and the NSE Nifty is trading down by 12 points. The S&P BSE Midcap> index is trading flat while the S&P BSE Small cap index is trading up by 0.2%. The rupee is trading at 67.67 to the US$.

According to an article in The Economic Times, Sun Pharmaceuticals launched a new drug called Imatinib Mesylate in the United States market. This product is a generic copy of anti- cancer drug Gleevec. Being a first-to-file product, the company will enjoy 180 days of marketing exclusivity by the US Food and Drug Administration (FDA).

Sun Pharma's subsidiary received final approval for Imatinib Mesylate from FDA in December 2015. Reports suggest that the six-month exclusivity could rake in US$300-400 million in sales for the company. The company also rolled out a savings card program to reduce out-of-pocket expenditures for patients to US$10 and offer savings benefits of up to US$700 for a 30-day fill.

Meanwhile, Dr Reddy's Laboratories has also reportedly received the US FDA approval for two new drugs in three days. Dr Reddy's Lab got the US regulator's tentative approval for skin treatment drug Zenavod just a couple of days after the company received FDA approval for anti-migraine injection Zembrace . While Zenavod is expected to launch in 2020, all attention seems to be on the anti migraine injection, which is reported to have a market size of nearly US$1.4 billion.

The approvals have come at a time when Indian drug companies are facing the FDA's ire for non- compliance of good manufacturing process (Subscription Required).

The stock of Dr Reddy's is currently trading up by 0.9% on the BSE.

Moving on to the news from power sector. India Ratings and Research (Ind-Ra) has maintained a 'stable to negative' outlook on the power sector for the next fiscal as the plant load factor (PLF) of plants is expected to remain low amid muted growth in electricity demand. The rating agency expects power demand to grow modestly at 4-5% and power generation at 5-6% in FY 2016-17, with deficits remaining low at 3-4%.

According to the reports, the muted demand growth is based on the expectation of stunted growth by industrial consumers which constitutes 40% of the energy sales. Moreover, the current focus on the use of efficient devices (LEDs and agricultural pumps) is leading to lower demand. The PLFs of the thermal power plants are likely to remain low as demand growth remains muted. Moreover, as the renewable energy share increases, it could exert additional pressure on the PLFs of coal-based plants.

The ratings agency, however, noted that the outlook could be revised to 'stable' on directional movement towards improvement in the financial health of discoms, better visibility on demand growth for electricity leading to improvements in PLFs.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "Markets Remain Volatile". Click here!


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Mar 22, 2018 11:45 AM