X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Sensex Opens Flat; Energy Stocks Lose
Mon, 25 Jun 09:30 am | Rini Mehta, TM Team

Asian share markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.4% while the Hang Seng is down 0.5%. The Shanghai Composite is trading up by 0.2%. Over the weekend, US stock indices closed mostly higher on gains in energy stocks.

Back home, India share markets opened the day on a flattish note. The BSE Sensex is trading down by 46 points while the NSE Nifty is trading down by 14 points. The BSE Mid Cap index and BSE Small Cap index both opened up by 0.2% & 0.1% respectively.

Sectoral indices have opened the day on a mixed note with energy stocks and automobile stocks witnessing maximum selling pressure. While, healthcare stocks & metal stocks opened the day in green. The rupee is trading at 67.77 to the US$.

In the news from the pharma space. As per an article in a leading financial daily, Dr Reddy's Laboratories Limited has lost a patent battle with Eli Lilly and Company over the litigation on Alimta (pemetrexed for injection) in the US. It is a drug meant for the treatment of several types of cancers.

Eli Lilly and Company announced that the US District Court for the Southern District of Indiana ruled in favour of Lilly that the Alimta vitamin regimen patent would be infringed by a competitor that had stated its intent to market alternative salt forms of pemetrexed prior to the patent's expiration in May 2022.

In a separate decision on 15 June, the District Court also ruled in favour of Lilly in the case of Eli Lilly and Company Vs Hospira.

Reportedly, these rulings mean Dr Reddy's Laboratories and Hospira will be prevented from launching their alternative salt forms of pemetrexed until the patent expires. Lilly said in its statement that it expects both Dr Reddy's Laboratories and Hospira to appeal.

In October 2017, the Patent Trial and Appeal Board of the US Patent and Trademark Office ruled in the company's favour regarding patentability of the vitamin regimen for Alimta.

According to the annual report 2017 of Eli Lilly, Alimta clocked US$ 2.1 billion worldwide including US$ 1.03 billion in USA.

Note that, innovators in the pharmaceutical industry make use of patents largely. They make heavy use of patents whenever they create a new drug. In one of the articles, we have spoken everything that you need to know about patented drugs, its advantages and its implications. Here's a snippet:

  • "That's how the innovators in the pharmaceutical industry work. They make heavy use of patents whenever they create a new drug. The patent allows them to recoup the high capital expenditure that goes into the research and development (R&D) of new drugs. Companies that have a patent on a particular product are immune from competition for the duration of the patent."

Notably, a number of patent infringement cases have been filed against leading Indian pharma companies and their counterparts in other countries over the last few years.

Dr. Reddy's share price opened the day down by 1.7%.

Moving on to the news from the bank sector. As per an article in a leading financial daily, Housing Development Finance Corp and Kotak Mahindra Bank are competing for a controlling stake in PNB Housing Finance as they aim to gain wider coverage in a mortgage market that's seen among the safest of havens in the lending world.

Promoters Punjab National Bank and Carlyle, which together own about 66% of the company, are looking to sell their stake to a large investor.

Reportedly, the deal is expected to fetch them about Rs 60 billion each. The listed mortgage lender has a market capitalisation of Rs 179.4 billion.

Earlier this month, fraud-hit PNB had informed that a decision to disinvest in PNB Housing Finance, Icra, Crisil and BSE will be taken at the appropriate time depending on market conditions and available options to implement PSB's reforms agenda for responsive and responsible PSBs (public sector banks).

Note that, having listed in November 2016 after a Rs 30-billion initial public offer, PNB Housing Finance has seen its market value almost double since then. Carlyle invested Rs 16 billion in February 2015 for a 49% stake in the then unlisted company. It now owns a 33% stake, having recently sold about 5% in the open market.

Speaking of PSBs, they have had a difficult year, to put it mildly.

After the euphoria of recapitalisation, bad loans have come to haunt them. Post the Gitanjali Gems fiasco, PSBs are yet to fully recover from its impact.

This underperformance was despite the huge boost they got from the government last year. On 24 October 2017, the government announced a Rs 2.11 trillion public sector bank (PSB) capitalisation plan. This move was aimed at reviving the PSBs from the bad loan mess.

The next day was a field day for investors in PSBs. PSB stocks went up between 30% and 47%. Despite this, the return in the year was way below average. PSBs like PNB have crashed more than 45% over the last one year.

PSBs Struggle Despite Government Help

PSBs Struggle Despite Government Help

Have we reached the bottom? Or there are more Nirav Modi stories waiting to come out?

We, at Equitymaster believe, rather than bottom fishing, one should look at banks run by strong management and a differentiated lending strategy available at reasonable valuations.

HDFC share price opened the day down by 0.5% while Kotak Mahindra Bank share price opened flat.

To get more updates on share market, click here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "Sensex Opens Flat; Energy Stocks Lose". Click here!

  

Stock Market Updates

Top Performing Midcap Stocks of 2018; L&T INFOTECH LTD Leads the Pack (Today's Market)

Sep 21, 2018 04:09 PM

Here's a list of 10 stocks that gained the most in the BSE Midcap Index on a year to date basis. It also includes information on BSE Midcap index and the broader benchmark indices.

TORRENT POWER LTD Plunges by 7%; BSE POWER Index Down 1.7% (Today's Market)

Sep 21, 2018 03:28 PM

TORRENT POWER LTD share price has plunged by 7% and its current market price is Rs 246. The BSE POWER is down by 1.7%. The top gainers in the BSE POWER Index is POWER GRID (up 1.3%). The top losers are TORRENT POWER LTD (down 6.9%) and JSW ENERGY (down 5.2%).

OBEROI REALTY Plunges by 6%; BSE REALTY Index Down 3.3% (Today's Market)

Sep 21, 2018 03:28 PM

OBEROI REALTY share price has plunged by 6% and its current market price is Rs 456. The BSE REALTY is down by 3.3%. The top gainers in the BSE REALTY Index is PHOENIX MILL (up 5.5%). The top losers are OBEROI REALTY (down 6.0%) and GODREJ PROPERTIES (down 8.1%).

IPCA LABS Plunges by 6%; BSE HEALTHCARE Index Down 1.8% (Today's Market)

Sep 21, 2018 03:28 PM

IPCA LABS share price has plunged by 6% and its current market price is Rs 755. The BSE HEALTHCARE is down by 1.8%. The top gainers in the BSE HEALTHCARE Index are SANOFI INDIA (up 3.8%) and ERIS LIFESCIENCES LIMITED (up 3.6%). The top losers are IPCA LABS (down 5.9%) and PIRAMAL ENTERPRISES (down 5.3%).

VA TECH WABAG Surges by 5%; BSE CAPITAL GOODS Index Down 0.3% (Today's Market)

Sep 21, 2018 03:28 PM

VA TECH WABAG share price has surged by 5% and its current market price is Rs 394. The BSE CAPITAL GOODS is down by 0.3%. The top gainers in the BSE CAPITAL GOODS Index is VA TECH WABAG (up 5.3%). The top losers are GRAPHITE INDIA (down 0.2%) and NBCC (INDIA) LTD (down 0.3%).

Sensex Recovers after Crashing Over 1000 Points; DHFL Tanks 50% (Today's Market)

Sep 21, 2018 01:30 pm

Indian stock markets witnessed a sudden sell-off in the afternoon with Sensex crashing 1,128 points and Nifty falling well below 11,000-mark.

View More Indian Share Market News

Most Popular

Is It the Right Time to Buy Pharma Stocks Now?(The 5 Minute Wrapup)

Sep 12, 2018

Is the pharma sector poised for a comeback? Is the worst over? I believe so.

Want Bigger Returns Than You Thought Possible? This is Where You Should Look(Profit Hunter)

Sep 12, 2018

Richa has discovered the single most profitable opportunity in the market - read on to discover more...

Investors Are Redeeming From Equity Mutual Funds Now. Should You?(Outside View)

Sep 12, 2018

PersonalFN elucidates if you should redeem from equity mutual fund now, and the approach to follow before you decide to sell mutual funds.

Are You Blindly Investing In Equities? Read This...(Outside View)

Sep 11, 2018

PersonalFN explains how blindly investing in equities can prove hazardous to your wealth and health.

Outperformance of Strong Established Brands in the Indian Stock market(Chart Of The Day)

Sep 14, 2018

Strong Well established Indian Brands have comfortably outperformed the index in the decade post the global financial crisis.

More

Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Sep 21, 2018 03:37 PM

MARKET STATS