After opening the day on a flat note, the indices have not shown any major movement. Buying interest is seen in the Pharmaceutical sector.
The BSE-Sensex is trading up by 8 points (0.03%) and the NSE-Nifty is trading up by 6 points (0.06%). The S&P BSE Midcap index is trading up by 41 points (0.37%), while the S&P BSE Smallcap index is trading up by 74 points (0.65%). The rupee is trading at 63.47 to the US dollar. Gold and Silver are trading at Rs 26,082 per 10 grams & Rs 35,521 per kilogram respectively.
Stocks in Pharmaceutical sector are trading on a positive note with Cipla and Sun Pharma leading the winners. Dr Reddy's posted a good performance in the last fiscal. It has addressed the shareholders that their performance is going to improve in FY16. The reasons cited for the same are its expansion of generic business in North America and emerging markets becoming the main growth drivers, backed by the launch of new formulations. The company stated that they have 68 abbreviated new drug applications (ANDAs) filed for approval with the USFDA. Out of these filing 43 are Para IV fillings. The rest have the 'First to File' status. Dr Reddy's is trading up by 0.5%.
Stocks in Banking sector are trading on a mixed note with Allahabad Bank trading down by 1% and Dhanlaxmi Bank trading up by 7.5%. The finance ministry has planned to pump Rs 120 bn into state owned banks. This is in addition to Rs 79.4 bn allocated in the budget towards capitalization. The funds will be allocated to the banks that are in urgent need of capital, even if they don't meet the efficiency criteria. Beneficiaries in the first infusion may include Syndicate Bank, Central Bank of India and Allahabad Bank. Capital infusion is required in the state owned banks as they have a lot of stressed assets on their balance sheet and in order to resume lending to provide support to the government's economic revival programme.