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Indian Indices started off on a positive note but remained under pressure till the end of the day's trades amid weak European markets. At the closing bell, the BSE Sensex closed lower by 244 points, the NSE Nifty finished lower by 64 points. The S&P BSE Midcap & the S&P BSE Small Cap finished down by 0.4% and 0.1% respectively. Losses were largely seen in metal and IT stocks.
Asian markets finished mixed as of the most recent closing prices. The Hang Seng gained 0.03%, while the Shanghai Composite led the Nikkei 225 lower. They fell 0.57% and 0.25% respectively. European markets are trading lower today with shares in France off the most. The CAC 40 is down 0.96%, while Germany's DAX is off 0.90% and London's FTSE 100 is lower by 0.47%.
The rupee was trading at 67.02 against the US$ in the afternoon session. Oil prices were trading at US$ 47.02 at the time of writing.
Steel stocks languished in the red with Jindal Saw Ltd and Adhunik Metaliks leading the losses. As per an article in a leading financial daily, Tata Steel has started export of Tata Ferro Shots from its steel plant located in Kalinganagar, Odisha.
The new product Tata Ferro Shots is a granulated pig iron solidified by cooling in water. It was launched by Tata Steel from its Kalinganagar plant in March this year. The steel industry, which traditionally used pig iron, sponge iron and scrap, has responded favourably to this innovative product.
Moreover, after its encouraging acceptance in the domestic market, the product is set to make its foray into the international arena. The company's Kalinganagar plant flagged off the first export consignment to a South East Asian country.
Notably, Tata Steel is setting up a 6 million tonne per annum (MTPA) integrated steel plant at Kalinganagar in two phases. The first phase of 3 MTPA is being implemented at an investment of Rs 250 billion.
Recently, the government imposed a minimum import price (MIP) on specific steel products. Sarvajeet Bodas, our research analyst has offered his views on the steel industry post MIP (Subscription Required).
Tata Steel finished the day down by 2.1% on the BSE.
Moving on to the news from the pharma sector. Cadila Healthcare has issued a recall of 223,776 bottles of Venlafaxine HCL ER Capsule both 75 mg and 150 mg for failed dissolution specifications. Venlafaxine HCL ER capsule is used for treatment of major depressive and anxiety disorders.
Reportedly, Cadila was slapped by the US FDA (Food & Drugs Administration) with a warning letter for Moraiya formulation facility and Ahmedabad API facility (Zyfine) earlier (Subscription Required) during the year. This recall has been initiated on the same grounds. The product was manufactured at Cadila Healthcare, Ahmedabad and distributed by Zydus Pharmaceuticals, USA.
Moreover, the recall was already initiated from 19th July but was reported to the FDA only on 18th Aug. Most of the products recalled were from a batch of 2017 expiry.
Considering the regulatory issues that the pharma sector has been facing in recent times, how are Indian pharma companies gearing to meet the stringent requirements of the USFDA? Bhavita Nagrani, our pharma sector analyst, shares her insights in one of our premium editions of The 5 Minute WrapUp (Subscription Required).
Cadila Healthcare finished the day the day up by 1.9%.
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