Asian stock markets bolstered gains taking lead from the international markets which closed in the green last week. U.S markets and European markets gained nearly 1% after the Fed chief clarified investors' doubt over raising the interest rates. All the major Asian indices are trading in the green. Chinese and Japanese stocks are trading with gains of over 1% while Hong Kong, Taiwanese and Korean markets are gaining with moderate gains of 0.5%, 0.1% and 0.12%, respectively.
Indian markets opened firm with BSE Sensex gaining about 0.4% or 120 points while NSE-Nifty gaining 35 points. BSE Mid Cap and BSE Small Cap are trading with moderate gains of 0.3% and 0.5%. Among the sectoral indices, capital goods and healthcare are the lead gainers while metals is trading in the red.
Commodities gained last week after the U.S. Dollar showed weakness and the Fed Chief provided comments that cheered investor sentiments. However, the Fed also said that it would remove the word "patient" keeping the door open for interest rate change in future. Gold prices gained nearly 1% or 220 per 10 grams and is trading at Rs 26,180 levels while silver prices gained over 3.8% or Rs 1,418 per kilogram and is trading at Rs 37,790 levels. Crude oil price, per barrel, gained nearly 3% or Rs 90 and is trading at Rs 2980 levels. Indian rupee against the U.S Dollar has opened in the red with a loss of 0.2% or 0.10 at Rs 62.36 levels.
Majority of the Metal stocks are trading in the red, however, Adhunik Metaliks and Tata Sponge are the major gainers. The government of India after scrutinizing the bids placed by some of the companies over coal blocks has given their verdict. According to a leading financial source, the government has rejected three bids of Jindal Steel and Power Limited. The bids include Tara coal block, Gare Palma IV/2 and 3. Bids placed for Tara coal block was Rs 126 per tonne while bids placed for Gare Palma IV/2 and 3 were Rs 108 per tonne each. The company had placed a bid of over Rs 2,000 a tonne in their previous auctions. The company argued that it has placed the bidding above the base price of Rs 100 per tonne and was much below the ceiling price set by the government. They further told that they have followed all the rules and procedures set by the government. JSPL looks forward for a meeting with the coal ministry to resolve the issue. The government is further looking forward to auction 200 coal mines. Shares of JSPL fell over 10%.
Pharma Sector has shown strength in today's session. Sun Pharma and Wockhardt are the major gainers. Indian pharmaceutical company Glenmark has been prohibited to sell anti-diabetes drugs as its pricing has "prima Facie" hurt the patent of US drug maker Merck Sharp and Dohme (MSD). The cost of Glenmark's medicines namely Zita and Zita-Met cost a third less than that being sold by the U.S Company, MSD's Januvia and janumet. The reason the price of the medicine is high is because of the custom duty which is paid by the U.S Company. On the positive side, Glenmark will be allowed to sell those ant-diabetic drugs which are already present in the market. Shares of Glenmark fell over 2% after such developments.