Markets up on Asian cues

Wed, 3 Mar 09:30 am

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The Indian markets have started today's session on a positive note. The benchmark indices opened above the breakeven mark and have managed to move further into the positive territory since then. Other key Asian markets are trading in the green with China (up 0.4%) leading the pack of gainers. The US markets closed marginally higher yesterday.

Currently in India, heavyweights from the BSE-Sensex are trading strong with construction and metal stocks attracting investors' interest. The BSE-Sensex is trading higher by around 82 points, while the NSE-Nifty is up by about 27 points. Buying interest is also being witnessed among mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are trading higher by 1% and 0.9% respectively. The rupee is trading at 45.93 to the US dollar.

Pharma stocks have opened the day on a positive note. Gainers here include Indoco Remedies and Dr. Reddy's. As per a leading business daily, Ranbaxy planned to launch the generic version of the Japan-based Astellas' Flomax on March 2 in the US. Flomax is used to treat prostrate enlargement and clocked sales of around US$ 2 bn in the US last year. The launch would have come eight weeks before the drug's patent expires in the US. However, the American drug regulator, FDA has denied Ranbaxy the permission to market the generic version of a blockbuster drug in the US. This is a negative development for the company especially given the difficulties on the USFDA front it has faced of late. It may be recalled that the regulator had banned 30 drugs from Ranbaxy's stable in September, 2008. Launching the generic version of Flomax on a later day would miss the eight-week marketing exclusivity window. Moreover, another generic drug maker, US-based Impax Laboratories was able to launch the product on time.

Engineering stocks have opened the day on a positive note. Gainers here include Areva T&D and Thermax. As per a leading business daily, engineering major BHEL is aiming at a turnover of Rs 500 bn per annum in the next ten years from its current level of Rs 270 bn. The company is banking on a strong order book valued at about Rs 1.5 trillion and a series of new joint ventures in related fields. The company is looking at tie up with foreign partners for a 10,000 tonnes per annum poly-silicon manufacturing facility in India, which can support the creation of solar power capacity of 1,000 mw annually. In the nuclear power space it has tied up with Nuclear Power Corporation of India (NPCIL) and is in talks with Areva and Westinghouse. It is also in talks with Toshiba, Japan for the transmission and distribution sector and Sheffield, UK for high-end forgings.