Indian indices continued to gain momentum as buying interest in heavy weights intensified during the previous two hours of trade. Stocks from the capital goods and banking space are currently leading the gains, while stocks from the realty space are trading weak.
The BSE-Sensex is up by 175 points while NSE-Nifty is trading 56 points above the dotted line. BSE Midcap index is up by 0.89% while BSE Small cap index is trading 1.07% above yesterday's closing. The rupee is trading at 45.36 to the US dollar.
After continuous rise in oil, commodity and food prices we now have a sign of relief. Government data show food inflation eased to 11.05% for the week ended Feb 5, 2011 as compared to 13.07% in the previous week. This is the lowest reading in the previous two months. It was the low agricultural productivity that had fueled the food inflation. The primary articles index rose by 14.59% in comparison to the rise of 17.05% a week earlier. The Prime Minister on Wednesday said that headline inflation will come to no more than 7% by March-end. And latest inflation numbers suggest we are headed in the right direction.
Pharma stocks are trading mixed with Dr Reddy's, Elder Pharma and J B Chemicals trading firm, while Aurobindo Pharma, Orchid Chemicals and Cipla are trading in the red. Glenmark Pharmaceuticals has announced that its novel molecule for pain and respiratory problems is entering human trials. The molecule has successfully completed pre-clinical trials and has been filed for human trials in Europe. The company said the addressable market for the drug is around US $30 bn while the market for osteoarthritis and neuropathic pain in around US $10 bn. This development gives better visibility into the long term revenue stream for the company.