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The majority of the Asian markets have markets opened lower, following losses in the US and European markets. The Nikkei 225 is off 0.89%, while the Hang Seng is down 0.44%. The Shanghai Composite is down by 0.66%.
Meanwhile, Indian stock markets have opened the day on a flat note. The BSE-Sensex is trading higher by 33 points and NSE-Nifty is trading higher by 8 points. Both S&P BSE Mid Cap and S&P BSE Small Cap are trading higher by 0.2% and 0.3% respectively. Sectoral indices have opened on a mixed note with FMCG and power stocks leading the gains. While, realty and metal stocks are leading the losses. The rupee is trading at 67.20 against the US$.
Buying is witnessed across the majority of the power stocks in the early trade with PTC India Ltd and KSK Energy leading the gains. According to an article in The Economic Times, Power Grid Corporation has approved investment of Rs 27.31 billion in various projects. The transmission system for solar park at Bhadla in Rajasthan at an estimated cost of Rs 14.29 billion, with commissioning schedule of 30 months is among the approved proposals. The board of the company approved as many as 11 proposals.
Reportedly, the investment approval includes transmission system strengthening for independent power projects in Chhattisgarh and other generation projects in the western region at an estimated cost of Rs 3.33 billion.
The company will also invest in transmission system strengthening associated with Mundra Ultra Mega Power Project (Part-B) at an estimated cost of Rs 3 billion. The projects also include Western Region Strengthening Scheme XVI at an estimated investment cost of Rs 1.5 billion. Power Grid opened the trading day down by 3.1% on the BSE.
Moving on to news from pharma sector. The stock of Wockhardt Ltd have opened the day on an negative note (down 0.8%) after it was reported that the US health regulator has made "observations" in its Establishment Inspection Report (EIR) for the company's three units in Maharashtra and ban on exports from the facilities to the US will continue.
As per the report, receipts of EIR does not materially change the status of import alert for the concerned manufacturing units for the US market. EIR is given to an establishment after the completion of the inspection by the US Food and Drug Administration (USFDA).
The company's Waluj plant was hit by an import alert by the USFDA in 2013 for not meeting manufacturing norms. The facility produces injectables as well as solid dosages. The Chikalthana facility was also put under import alert by the USFDA on the issue of non-compliance of manufacturing norms (Subscription Required).
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