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After opening the day in the green, the Indian indices registered further gains in the post noon trading session. Sectoral indices are trading on a positive note with stocks from the IT, consumer durables and metal sectors leading the gains.
The BSE Sensex is trading up 102 points (up 0.4%) and the NSE Nifty is trading up 38 points (up 0.5%). The BSE Mid Cap index is trading flat while the BSE Small Cap index is trading up by 0.1%. Gold prices, per 10 grams, are trading at Rs 29,350 levels. Silver price, per kilogram is trading at Rs 38,410 levels. Crude oil is trading at Rs 2,775 per barrel. The rupee is trading at 66.66 to the US$.
Engineering stocks are trading on a mixed note with Jyoti Structure and TRF leading the losses. As per a leading financial daily, Crompton Greaves (CG) has won a significant order of US$ 35 million from PT PLN (Persero), the state-owned electricity company of Indonesia. The order is for manufacturing and installing 28 power transformers.
The company stated that its power transformers will be installed across PT PLN's transmission network, spread over multiple substations and power plants in the Java, Sumatra and Kalimantan provinces of Indonesia. The delivery period for the same is scheduled between May 2016 and March 2017.
The power transformers will be manufactured in CG's world-class manufacturing facility in Indonesia, which comprises a vertical winding machine, a vapor phase drying oven and a state-of-the-art 500kVA test facility.
It is to be noted that Crompton Greaves won this order due to its successful track record with PT PLN, backed by its technical expertise in manufacturing and supplying high-voltage transformers. Since 1993, CG has regularly provided PT PLN with power transformers in the range of 30 MVA (mega volt amp) to 500 MVA and voltage levels up to 500 kV (kilo volt).
On a separate note, one should note that Crompton Greaves recently demerged its consumer business. Post this development, the consumer business is expected to be listed separately in April. The company had in February 2015 announced it's decision to fully demerge its consumer products business (subscription required). The company's board had approved the demerger of the consumer products business into a separate listed company, Crompton Greaves Consumer Electricals Ltd. As per the company, the demerger will create better growth opportunities for its two large but significantly different businesses - power transmission and consumer products business such as fans, pumps and heaters.
Post this development, Crompton Greaves shares will reflect only its power business, which includes its power transmission and associated equipment business. Presently the scrip of the company is trading up by 0.9%.
Stocks of Indian pharma companies are also trading on a mixed note with Lupin and Glenmark Pharma witnessing maximum selling pressure. As per a leading economic daily, Glenmark Pharmaceuticals has been granted tentative approval by the United States Food & Drug Administration (US FDA) for its Lacosamide Oral Solution.
The company stated that it will market this product upon receiving final approval of its Lacosamide Oral Solution, 10 mg/mL ANDA (abbreviated new drug application).
Lacosamide Oral Solution is the generic version of Vimpat Oral Solution, 10 mg/mL of UCB, Inc. According to IMS Health sales data for the 12-month period ending January 2016, the Vimpat market achieved annual sales of approximately US$ 55 million.
Glenmark's current portfolio consists of 108 products authorized for distribution in the US marketplace and 61 ANDA's pending approval with the US FDA.
Presently the stock of Glenmark Pharmaceuticals is trading down by 2.9%.
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