A sudden spurt in buying towards the final couple of hours saw the indices move strongly into the positive and close the day on a buoyant note. Thus, gains on the BSE-Sensex came in at around 150 points whereas NSE-Nifty edged higher by around 45 points (up 0.8%). BSE-Midcap
and BSE-Small cap indices also performed well and closed in the positive by 0.5% each. Advance to decline ratio remained firmly in the favour of the former as 5 stocks gained for every one that declined on the Sensex.
Almost all the major Asian indices closed in the red today whereas Europe too is trading in the negative currently. The rupee was poised at Rs 44.4 to the dollar at the time of writing.
Indian markets closed higher despite none of the major Asian indices ending the day in the positive. The fact that Indian central bank will most likely go in for another rate hike in its forthcoming policy meeting also did not deter them. Perhaps, the buoyancy in telecom stocks on account of tariff hikes by key players seemed to have rubbed off on a few other frontline stocks as well and this took the overall market higher. Whether the trend will continue is anybody's guess.
Cadila Healthcare, the mid cap pharma major traded strong today and closed 3% higher than its previous closing. The optimism seemed a result of news that the company's formulation manufacturing plant at Baddi, Himachal Pradesh, has been approved by the US drug regulator, USFDA. As a result of this approval, the plant, which was so far catering to the domestic and emerging market requirements will now also be able to supply to the US market. The ultra modern plant was commissioned in 2007 and is currently manufacturing oral solid dosage forms like hard gelatin capsules and tablets.
NTPC, India's largest power generating company, also closed buoyant on the bourses today but ended up only marginally higher. The company announced its results for the first quarter FY12 today. It reported a profit growth of 13% YoY for the quarter on the back of a 10% increase in net sales. The company's expenditure also grew in line with sales, registering close to 10% YoY growth. Fuel cost however, grew at a slightly faster rate and witnessed 12% YoY growth. While the company has robust expansion plans, other private sector players are not far behind either. It should be noted that as per the power ministry, the private sector share in generating and distributing electricity will increase more than 50% by the end of the next five year plan.