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After opening the trading week on a strong note, Indian equity markets continue to rally in the noon session amid firm international markets. Gains are largely seen in banking, auto and consumer durables' sectors.
The BSE Sensex is trading higher by 318 points and the NSE Nifty is trading higher by 96 points. The BSE Small Cap index & the BSE Mid Cap index are trading higher by 1.4% and 0.8% respectively. The rupee is trading at 66.81 to the US$.
Shares of Sun Pharmaceutical Industries are trading in the green after the company signed a strategic distribution alliance with Mitsubishi Tanabe Pharma Corporation for 14 prescription brands. Under this alliance, following the transfer of manufacturing & marketing rights to Sun Pharma's subsidiary in Japan, Mitsubishi Tanabe Pharma Corporation will market and distribute all the 14 brands as well as provide information on their proper use to healthcare professionals.
The pharma major initiated a phased transfer of manufacturing & marketing rights in Japan for the 14 long-listed/established prescription brands acquired from Novartis as part of a US$ 293 million deal. These 14 prescription brands acquired by the company earlier this year will be transferred from Novartis Pharma K.K. to Sun Pharma's subsidiary in Japan beginning October 2016.
In March, Sun Pharma had said the brands have combined annualized revenues of approximately US$160 million and address medical conditions across several therapeutic areas. Sun Pharma will focus on expanding its sales channels in Japan's pharmaceutical market (Subscription Required) while continuing to ensure a stable supply of medicines and healthcare information through this alliance.
Large Indian generic drug makers rate Japan as a potential market to establish a long term presence. Lupin, which draws 10% of its global revenues from Japan, recently acquired a set of products from Shionogi. Other Indian companies like Dr. Reddy's are also seen chasing a few other targets in Japan.
Moving on to news from steel sector. According to an article in The Economic Times, The Commerce Ministry may not be extending the minimum import price (MIP) (Subscription Required) on certain steel products beyond October 4 as these items could be covered under anti-dumping duty. By the next month, the commerce ministry will complete the anti-dumping investigations on the 66 steel products on which MIP has been imposed and extended till October 4
Reportedly, the commerce ministry may take the decision considering the World Trade Organization (WTO) compliant measures like anti-dumping duty should be used to overcome the issue of cheap imports of commodities like steel.
Earlier, the government had extended the MIP on 66 steel products for two months. The 66 products included semi-finished ones of iron or non-alloyed steel, flat-rolled products of different widths, bars and rods.
Meanwhile, major steel producers China, India and Japan along with other G20 nations have called for increased sharing of information as well as more cooperation by forming a global forum to address the issue of excess steel capacity.
The development assumes significance in the backdrop of the problem caused in international markets due to excess steel capacity amidst softening of prices. This has hit the sales and profits of domestic steel producers and also impacted their liquidity, which in turn has affected their capacity to repay loans and meet interest payment deadlines. Steel sector in India reportedly accounts for the highest number of NPAs with the banks.
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