Share markets in India are presently trading near the dotted line. Sectoral indices are trading on a mixed note with stocks in the auto sector and consumer durable sector witnessing maximum buying interest. Stocks from the energy sector are trading in the red.
The BSE Sensex is trading up by 2 points, while the NSE Nifty is trading up by 4 points. The BSE Mid Cap index is trading down by 0.4%, while the BSE Small Cap index is trading down by 0.2%.
The rupee is trading at 68.77 to the US$.
In the news from pharma sector, Suven Life Sciences share price is in focus today as the company secured 1 patent each from Mexico and New Zealand.
The new patents are corresponding to the new chemical entities for the treatment of disorders associated with Neurodegenerative diseases. The patents are valid through 2030 and 2036, respectively.
As per the news, the granted claims of the patents include the class of selective H3 and 5-HT4 compounds, respectively. Also, they are being developed as therapeutic agents for neurodegenerative disorders such as for the treatment of cognitive impairment associated with neurodegenerative disorders like Alzheimer's disease, Attention deficient hyperactivity disorder (ADHD), Huntington's disease, Parkinson and Schizophrenia and sleep disorders like Narcolepsy.
Commenting on the above development, Venkat Jasti, CEO of Suven Life Sciences said that the management of the company is very pleased by the grant of these patents to Suven for its pipeline of molecules in CNS arena that are being developed for cognitive disorders with high unmet medical need with huge market potential globally.
At the time of writing, Suven Life Sciences share price was trading up by 1.3% on the BSE.
Speaking of pharma sector, note that the BSE Healthcare Index has been on a roller coaster ride in the past few years. The period from 2012 to 2015 saw the index go up more than three times.
And since then it has been a painful ride downwards, as can be seen from the chart below:
As we wrote in one of our editions of The 5 Minute WrapUp...
We believe that pharma companies that invest in creating a pipeline of complex generics or building competencies in alternative dosage forms are better equipped to tackle the changing dynamics in the US generics market as well as in the overall industry.
Therefore, despite a lot of pessimism surrounding pharma stocks on regulatory uncertainty, we have stocks in open positions in StockSelect and have remained bullish on pharma stocks in our long term service, ValuePro.
In the news from commodity markets, crude oil is witnessing buying interest today. Gains are seen ahead of the introduction of US sanctions against major crude exporter Iran.
As per the news, many countries including US allies in Europe as well as China and India have opposed the introduction of new sanctions. However, the US government has said it wants as many countries as possible to stop buying Iranian oil.
Also, in West Asia, Saudi Arabia is said to have cut oil output after signs that it couldn't find buyers to justify pumping record levels. Meanwhile, US drillers have also reduced the number of rigs put to work.
The news relieved worries about oversupply and meant crude oil prices trade on a positive note.
How the above developments influence crude oil prices over the week remain to be seen. Meanwhile, we will keep you posted on all the updates from this space. Stay tuned.
Speaking of crude oil, note that global oil prices have climbed steadily this year, helped by rising demand. However, rising crude oil prices doesn't bode well for the Indian economy, as it not only affects fuel prices, but also has many other repercussions on the macroeconomic level.
They can be a big worry for the Modi government as well as it has been a big beneficiary of lower crude oil prices.
As Ankit Shah wrote in one of the editions of The 5 Minute WrapUp...
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 "Indian Indices Trade Flat; Auto Stocks Witness Buying". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!