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
  • MyStocks


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

Positive Start to the Day
Wed, 27 Jul 09:30 am

Major Asian stock markets have opened the day on a mixed note with the stock market in Japan trading higher by 2.1%. While, the stock market in China is trading lower by 1.7%. Benchmark indices in Europe and US ended their previous session in green with the stock market in Germany ending the day higher by 0.5%. The rupee is trading at 67.36 per US$.

Indian stock markets have opened the day on a firm note. The BSE Sensex is trading higher by 108 points (up 0.4%) and the NSE Nifty is trading higher by 42 points (up 0.5%). While, BSE Mid Cap and BSE Small Cap have moved upwards and are trading higher by 0.6% and 0.7% respectively.

Barring stock from pharmaceutical sector, major sectoral indices have opened the day on a positive note. Stocks from banking and power sector are witnessing buying interest.

As per an article in Livemint, Dr Reddy's declared its result for the quarter ended June 2016. The net profits declined by 80% YoY to Rs 1.2 billion during the quarter. The profits fell on the back of weak sales in North America and loss of business in Venezuela.

Sales from North America, accounting for 82% of the total sales of the company, declined by 16% YoY during the quarter. The sales declined in this geography on the back of cut-throat competition and pricing pressures.

Further, sales from Venezuela plummeted to zero. Venezuela was the company's fourth largest country by sales. The government of Venezuela has imposed restrictions on transferring money to other countries as it has run out of foreign exchange reserves.

To add to the woes, the warning letters issued by the US Food and Drug Administration (USFDA) have halted approvals for the drug filling made.

As of 30 June, the company has 78 generic filings pending for approval with the USFDA. Issues pertaining to the warning letter and sales growth in the North American geography will be the key things to watch out for going forward. The stock is trading down by 9.5%.

In another news update, Maruti Suzuki too reported its results for the quarter ended June 2016. The net profits grew by 23% YoY to Rs 14.8 billion during the quarter. Net profits were higher on the back of lower material costs and a surge in other income.

Further, sales grew by 12.1% YoY to Rs 146.5 billion during the quarter. The company had suffered a production loss of around 25,000 units in the month of June after a fire gutted the factory of vendor Subros Ltd, which makes air conditioning equipment. This had dampened the sales growth during the quarter.

However, Maruti reiterated that it looks to grow its sales in "lower double digit" during 2016-17, outpacing the 8-9% growth estimate for the overall passenger vehicle industry.

Further, the seventh pay commission, expectations of normal monsoon, and lower interest rates too will aid the sales growth of the company. Traction from the launch of new models through Nexa showrooms will be the key things to watch out for the company going forward. The stock is trading up by 1.6%.

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 "Positive Start to the Day". Click here!


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


Nov 24, 2017 (Close)