Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


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

Pharmaceutical Stocks in Demand
Thu, 18 Feb 01:30 pm

After opening the day higher by around 300 points, the Indian indices have lost some of their early gains. The BSE Sensex is trading higher by 196 points (up 0.8%) and NSE Nifty is trading higher by 60 points (up 0.8%). The BSE Mid Cap and BSE Small Cap are trading higher by 0.5% and 0.9% respectively. Sectoral indices are trading on a positive note with stocks from the oil & gas and pharmaceutical sector witnessing maximum buying interest.

Gold prices, per 10 grams, are trading at Rs 28,844 levels. Silver price, per kilogram is trading at Rs 37,070 levels. Crude oil is trading at Rs 2,140 per barrel. The rupee is trading at 68.49 to the US$.

As reported in a leading financial daily, Dr Reddy's Laboratories board has approved a proposal to buy-back the company's shares. The buy-back will be executed at a price of Rs 3500 per share. This turns out to be a premium of around 18% to their closing price on Wednesday.

The company stated that buy-back is proposed on account of its strong cash flows which stood at around Rs 25 billion as of 31 December 2015. The buyback may also help the company to increase its earnings per share (EPS). Reportedly, the stock had hit an all-time high on 9 October and has fallen by 33% since then.

The fall was because of the warning letter from US Food and Drug Administration for alleged violations of manufacturing standards at three of its active pharmaceutical ingredients plants. Bhavita Nagrani, our Pharmaceutical Analyst, has written a detailed note regarding the implications of the warning letter on the financials of the company and the road ahead. Read this interesting piece to know more (subscription required).

In another news update, Larsen & Toubro is eyeing huge opportunities in the road sector. The government looks to double the length of country's highway to 200,000 kilometers.

Reportedly, in the previous two weeks the government has bid out 31 projects worth Rs 280 billion. Out of the above, nearly half were under the engineering, procurement and construction (EPC) mode. In the EPC mode the project is funded by the government. This encourages private players to participate in the bids as their capital is not blocked. Recent trends indicate that the private investments are on a decreasing trend because of their already over-leveraged balance sheets. Thus, we are seeing a substantial increase in EPC contracts.

Moreover, Mr Gadkari, Minister for Road Transport and Highways, stated that the quantum of stranded projects in the road sector have reduced from Rs 3,800 billion to Rs 150 billion. Further, the pace of building highways has gone up from 2km a day to 18km a day.

The company also sees opportunity in expressway projects by state governments, elevated corridors and ring roads in major cities besides dedicated freight corridor programme and highway projects in the Middle East. The stock is trading up by 2.9%.

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

What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "Pharmaceutical Stocks in Demand". Click here!


Views on News

Beware the Ides of March (Fast Profits Daily)

Mar 1, 2021

The month of March is usually difficult for traders. This time it will be even more so. Find out why in this video.

UTI Nifty200 Momentum 30 Index Fund: Aims to Benefit from Momentum Investing Strategy (Outside View)

Mar 1, 2021

PersonalFN analyses the features of UTI Nifty200 Momentum 30 Index Fund and explains the potential this fund has to offer to its investors.

How to Have a Perfectly Normal Day Even if Sensex Falls 2,000 Points (Profit Hunter)

Mar 1, 2021

How can someone witness a 2,000 point decline on the Sensex and still stay perfectly calm.

ITI Mid-Cap Fund: Investing in Potential Midcap Companies for Growth (Outside View)

Feb 26, 2021

PersonalFN analyses the features of ITI Mid-Cap Fund and explains the potential this fund has to offer to its investors.

NSE Glitch: Why Did the Market Go Up? (Fast Profits Daily)

Feb 26, 2021

In today's video, I'll discuss why thew stock market went up on Wednesday, 24 February 2021, when the NSE had to shut trading due to a technical glitch.

More Views on News

Most Popular

It's the Beginning of a New Bull Phase in Smallcaps (Profit Hunter)

Feb 24, 2021

Last time the smallcap index crossed 19k a big correction followed. Here's what makes it different this time.

Top 5 Stocks Mutual Funds Bought and Sold in January 2021 (Sector Info)

Feb 16, 2021

A look at what India's top equity mutual funds bought and sold in January 2021.

I Would Recommend this Small-cap Stock Over Tesla (Profit Hunter)

Feb 16, 2021

Do you enjoy reading Tesla and Bitcoin stories? Here's a not so famous small-cap stock to profit from the rise of EVs.

Make Rs 5,000 Per Day Trading the Market (Fast Profits Daily)

Feb 25, 2021

In this video, I'll show you how to get started on the path to daily trading profits.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Mar 1, 2021 03:36 PM