Persistent buying activity led the Indian markets to rise higher into the positive territory as the day progressed. The BSE-Sensex closed with gains of about 135 points or 0.7%, while the NSE-Nifty ended higher by about 39 points or 0.6%. Barring stocks from the metal and realty spaces, gains were seen across the board with engineering and FMCG companies leading the pack. Stocks from the mid and smallcap spaces also ended higher with the BSE Mid Cap and BSE Small Cap indices up by about 0.1% and 0.2% respectively.
Stock markets in other parts of Asia traded mixed with Japan down by about 0.5%, while China and Hong Kong were up by about 0.4% and 0.5% respectively. The rupee was trading at Rs 61.94 to the dollar at the time of writing.
Stocks of textile companies ended the day on a firm note led by Arvind Limited, Grasim Industries and Raymond. As per the Hindu Business Line, textile major, Arvind Limited's joint venture company Arvind Goodhill Suit Manufacturing Ltd has launched formal suits to cater to the Indian markets. This joint venture is in association with Japan based Goodhill Corporation. It is reported that the company has set up a greenfield facility in Bangalore as part of this venture. As per Arvind's management, the facility will start by manufacturing about 350,000 pieces of jackets and 600,000 pairs of trousers. The company expects the turnover of this venture to cross Rs 1 bn in the first year itself. During the quarter ended December 2013, the company's revenues and profits stood at Rs 17.7 bn and Rs 1 bn respectively.
Stocks of pharmaceutical companies ended the day on a firm note led by Dr. Reddy's Labs, Sun Pharmaceuticals and IPCA Labs. As reported by the Hindu Business Line, Aurobindo Pharma is expecting strong growth in revenues from its injectables business from the current quarter. The demand will be driven by the shortfall of injectables in the US, which has helped in keeping prices intact. The company's management expects new products to drive growth as well. Further, it is believed that the company has filed for approval of ANDAs for about 11 products, which are currently on the shortage list.
The company's management also shared its views on the acquisition of Actavis' business in seven countries in Europe last year. This acquisition gave it access to about 1,200 products. As reported, the plan in the next two years is to launch 200 more products. The company's management is also believed to be contemplating moving production to India, provided the cost advantage is available there. The stock of Aurobindo Pharma ended lower by about 2% today.