Indian equity markets continued to trade strong over the last two hours of trade on back of heavy buying activity witnessed across industry heavyweights. Oil and gas and realty stocks witnessed maximum buying interest.
Energy stocks are trading strong led by Reliance Industries and Castrol. According to a leading financial daily, Gas Authority Of India Ltd. (GAIL) and Vadodara Municipal Corporation (VMC) are all set to form a joint venture (JV) for supply of natural gas in the city of Vadodara and its surrounding areas. All the required formalities have been completed and the proposal of this joint venture company would come before the general body of the VMC on August 8. Once the new company comes into existence, it is expected to provide over 85,000 gas piped connections in the city, in addition to the existing 78,000 connections. GAIL presently has allocated one lakh cubic metres of gas for the city, which will be increased to provide more gas connections for domestic, non-domestic and industrial sector. The new proposed JV company will have six directors, with three representatives each from VMC and GAIL.
Pharma stocks are trading in the green led by Wockhardt and Glenmark Pharma. According to a leading financial daily, Cipla is planning to set up active pharmaceutical ingredients (API) facilities at Patalganga, Bengaluru and Kurkumbh. The company is planning to invest Rs 5 bn towards setting up of these facilities which are expected to be completed by FY13. The company is actively involved in developing bio- similars/ bio-therapeutic products through its partners in China. It is expected that the clinical trials on these drugs will be completed in 2-3 years and subsequently, the products will be launched in India. The company is also expanding its presence in the inhaler segment in Europe, with regulatory approvals for a few products already in place and few more in the pipeline.