Buying interest in Capital goods, Consumer Durables and banking stocks on the last trading day of the holiday shortened week helped indices in Indian equity markets to close the day and the week in the positive. The markets ended higher after prices of global commodities such as Brent crude and gold slipped further, that will help bridge the burgeoning current account deficit (CAD). While the BSE-Sensex closed higher by 285 points, the NSE-Nifty closed higher by 94 points. Both the BSE Mid Cap and the BSE Small Cap closed on a strong note.
As regards global markets, Asian indices closed mixed. European indices have opened in the green. The rupee was trading at Rs 54.03 to the dollar at the time of writing.
According to a leading financial daily, the US Food and Drug Administration (USFDA) inspected Wockhardt's export-oriented injectable units in Aurangabad and issued 483s. They (483s) are inspectional observations, to document and communicate concerns discovered during the audit, and do not represent a final agency determination regarding the compliance of the facility. This means that a company is let off the hook if it took preventive measures on these observations. But if concerns persist over safety, efficacy and quality of the drugs coming into the US from the suspect manufacturing unit, then a warning letter is issued. Wockhardt has already initiated remedial action at its Aurangabad site. They have already given full and comprehensive response to USFDA.
The Supreme Court has accepted all the reports submitted periodically by the Central Empowered Committee (CEC) regarding the mining in Karnataka. Category B mines will be allowed to restart mining subject to necessary statutory clearances. Already, the apex court has approved 18 Category A mines, of which 7 mines have started mining. The court also cancelled mining leases for all illegal mines in the state. The leases of Category C mines will stand cancelled reporting maximum illegalities in Bellary, Tumkur and Chitradurga districts of Karnataka. There are 49 mining leases in Category C. Steel makers have welcomed the Supreme Court judgment that will open up balance category A and B mines in Karnataka region. This will have a positive impact on the steel sector and the Indian economy.