Indices in the Indian stock market continued their bounce back journey during the closing stages of the day and as a consequence, managed to close the day comfortably in the positive. While BSE-Sensex closed higher by around 80 points, gains on the NSE-Nifty came in at around 20 points. BSE Mid Cap and BSE Small Cap indices could not overcome the resistance and hence closed the day marginally in the negative. Nearly three stocks gained for every one that closed the day in the negative on the Sensex.
Almost all the Asian indices closed weak today with European indices too trading in the red currently. The rupee was placed Rs 54.5 to the dollar at the time of writing.
On account of today's recovery, the loss for the full week has been restricted to a shade under 1%. However, with the global financial markets poised as they are, we won't be surprised if even 15,000 on the Sensex gets taken out. This would however make the markets even more attractive from a long term perspective. Anything that comes down in price, stock markets included, deserves more buying and not less. However, due to our differently wired brains, most of us start selling just when prices are heading down. Avoiding this tendency is one of the cornerstones to successful investing we believe.
Good times seem to be finally here for the beleaguered airline sector. First, the fall in crude prices and now reports are doing the rounds that the 49% FDI in the sector, which had been held back for quite some time now could finally see the light of the day over the next few weeks. The development is likely to bring a great deal of relief to the sector on account of its debt problems in the midst of a tight liquidity situation. Most of the stocks in the sector closed positive today.
Pharma major Sun Pharma has received an approval from US FDA for its abbreviated new drug application for the generic version of Plavix, Clopidogrel tablets USP 75 mg. This assumes importance in the light of the fact that it will open up an US market of the size of US$ 6.7 bn for the firm. The approval comes close on the heels of an earlier approval for its abbreviated new drug application for generic version of Zyprexa. The stock closed marginally higher on the bourses today.