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After opening the day on a positive note, the Indian stock markets witnessed some pressure to trade near the dotted line amid weak European markets. Sectoral indices are trading on a mixed note with stocks from the IT and metal sectors leading the losses. FMCG and pharma stocks are leading the gains.
The BSE Sensex is trading lower by 8 points and the NSE Nifty is trading higher by 4 points. The BSE Small Cap index is trading up by 0.3% while, the BSE Mid Cap index is trading higher by 0.1%. The rupee is trading at 67.11 to the US$.
Shares of Natco Pharma hit their fresh 52-week high (currently up 4.7%) after it was reported that the company has received successful Establishment Inspection Report (EIR) from the US Food and Drug Administration (FDA) for the inspection conducted, during the period February 8 - February 12, 2016, at its Chemical Division in Chennai, India.
The company also recently received successful EIR during the period February 29 to March 7, 2016 from the USFDA for the inspection (Subscription Required) conducted at its drug manufacturing facility in Kothur Village, Mahaboob Nagar District, Telangana. The Kothur facility predominantly caters to regulated international markets, including USA.
Also, Lupin's US subsidiary, Gavis Pharmaceuticals LLC., U.S.A. has received final approval for its Linezolid Tablets, 600 mg from the USFDA to market a generic equivalent of Pharmacia & Upjohn Company's Zyvox Tablets, 600 mg. It is indicated in adults and children for the treatment of certain infections caused by susceptible Gram-positive bacteria. Zyvox Tablets had US sales of US$ 273.6 million as per IMS MAT June 2016 data.
After taking over Gavis for a record US$880 million last year, Lupin recently picked up a set of brands from Shionogi in Japan, further strengthening its hold in the world's second-largest pharmaceutical market after the US.
According to an article in The Economic Times, Indian companies are eager to flex their growing financial muscle by expanding overseas inorganically by picking up established drugmakers. And with Lupin, Sun, Dr Reddy's and others exceeding the US$2-billion sales mark, Indian companies are also exceeding the qualifying threshold when it comes to bidding for such targets.
Moving on to news from power sector. According to a leading financial daily, Tata Power increased its generation capacity by around 9% in the first quarter of the current fiscal against the previous corresponding period.
The rise has been mainly due to commissioning of 44 MW Lahori wind farm project in Madhya Pradesh and Cennergi achieving commercial operations of both its 134 MW Amakhala Emoyeni and 95 MW Tsitsikamma Wind Farms. The company has significant presence in the clean energy space with a gross installed capacity of 1996 MW.
Meanwhile, the company also has crossed the 2 million consumer base milestone across the country. In FY 16, company's total consumer base in Mumbai increased to over 664,000 and its consumer base in Delhi increased to over 1.5 million consumers. For more than a decade now, the company has been offering affordable power tariff across most consumer categories and the remarkable increase in the company's customer base is evidence of the same.
The Company generates power from various fuel sources such as thermal (coal, gas and oil), hydroelectric power, renewable energy (wind and solar) and waste heat recovery, thereby, reinforcing its position as the largest integrated power company in India.
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