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?  

Indian Indices Continue Momentum; Metal Sector Up 2.3%
Wed, 30 Aug 11:30 am

After opening the day higher, stock markets in India have continued their momentum. Sectoral indices are trading on a positive note with stocks in the metal sector and energy sector witnessing maximum buying interest.

The BSE Sensex is trading up 243 points (up 0.8%) and the NSE Nifty is trading up 84 points (up 0.9%). The BSE Mid Cap index is trading up by 1.4%, while the BSE Small Cap index is trading up by 1.5%. The rupee is trading at 63.93 to the US$.

Cadila Healthcare share price is witnessing buying interest today as Zydus Cadila received establishment inspection report from the US health regulator for its manufacturing facility in Ahmedabad.

The development signifies a successful closure of the US Food & Drug Administration (USFDA) audit for the abovementioned facility.

Speaking of USFDA approvals, there's a sharp pick-up in new drug approvals in 2017. During the period January-July 2017, 129 approvals for generic drugs were made. This is evident from the chart below:

USFDA sweetener for Indian Pharma

This is 45% higher from 89 approvals made in the corresponding period last year.

As per the Indian Pharmaceutical Alliance, the pace of drug approvals has gained momentum after they complained to FDA about delays last year.

Approvals for drugs have also picked up after USFDA concerns at some of the manufacturing units were addressed. Companies such as Divi's Laboratories, Cadila Healthcare, Sun Pharmaceuticals and Dr Reddy's Laboratories got regulatory clearances for some of their plants during the year. But several companies are still grappling to resolve FDA concerns. Some facilities of Wockhardt, IPCA and Sun Pharma are still under import alert whereas a few units of Divi's Laboratories and Dr Reddy's have received warning letters.

However, FDA's move to speed up generic drug approvals in a bid to reduce healthcare costs is likely to provide some earnings relief to domestic pharma sector companies.

Just Released: Multibagger Stocks Guide
(2017 Edition)

In this report, we reveal four proven strategies to picking multibagger stocks.

Well over a million copies of this report have already been claimed over the years.

Go ahead, grab your copy today. It's Free.

NO-SPAM PLEDGE - We will NEVER rent, sell, or give away your e-mail address to anyone for any reason. You can unsubscribe from The 5 Minute WrapUp with a few clicks. Please read our Privacy Policy & Terms Of Use.

In the news from IT space, Wipro has got shareholders nod for its share buyback. Wipro share price witnessed buying interest following this development during early trades today.

Speaking of share buybacks, many buybacks, mainly from the IT sector are set to hit a new record this financial year. As per Prime Database, in the first five months of FY18, at least twenty companies have offered to buy back shares worth Rs 480 billion.

As per Rahul Shah, co-head of Research, investors should not assume buybacks are always good. Here's an excerpt of what he wrote in a recent edition of The 5 Minute Wrapup:

  • The reason behind the buyback must be investigated. At the end of the day, an increase in earnings should be more a function of the inherent robustness of the business, as that's what will help it continue to grow at a healthy pace.

The topic also brings us to ask: Do buy-backs offer an arbitrage opportunity for retail investors? Ankit Shah has answered this question in a recent edition of Equitymaster Insider. You can access the issue here.

In the news from Goods and Services Tax (GST) space, GST collections have exceeded estimates in the month of July - the first month of the landmark levy's rollout. This was seen despite a significant number of assessees not having filed returns yet.

As per an article in the Economic Times, Finance Minister Arun Jaitley stated that GST mopup in July is pegged at Rs 922.8 billion and could rise further.

There has been a jump in the number of registered tax payers under the goods and services tax (GST). Reportedly, as of 24th July, around 7.95 million applicants had sought GST registration. That is 99.3% of the 8 million tax base under the earlier system comprising of assesses of state value-added tax (VAT), service tax and central excise duty.

The above development will aid India's tax revenues to a greater extent in the coming future. This augurs well for the country that has one of the lowest tax revenue as a percentage of GDP compared with other countries.

The higher tax revenue receipts will help bolster the country's financials and also provide further ammunition for the government to spend on social welfare and providing additional infrastructure for citizens.

A wider tax base will also allow the government to lower its tax rates in future. After studying these and other finer aspects of GST, our colleague Vivek Kaul, has penned his views on the GST tax regime and what could go right and wrong in its implementation process. Get a balanced perspective on the entire GST saga from Vivek in his report titled The Good, the Sad and the Terrible (GST).

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 Continue Momentum; Metal Sector Up 2.3%". 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


Mar 16, 2018 (Close)