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The Indian share market continued trading in the negative territory during the noon trading session amid weak Asian markets. Sectoral Indices are trading on a mixed note with stocks from consumer durables & realty sector leading the gains. While FMCG sector & banking stocks are trading in the red.
The BSE Sensex is trading lower by 230 points (down 0.8%) while the NSE Nifty is trading lower by 58 points (down 0.7%). The BSE Mid Cap index is trading flat while BSE Small Cap index is trading up by 0.3%. Gold prices, per 10 grams, are trading at Rs 29,969 levels. Silver price, per kilogram is trading at Rs 42,514 levels. Crude oil is trading at Rs 3,309 per barrel. The rupee is trading at 66.80 to the US$.
As per an article in The Economic Times, Glenmark Pharmaceuticals announced that it has received final approval from the US health regulator for anti-fungal ointment nystatin and triamcinolone acetonide.
Reportedly, US Food & Drug Administration (USFDA) issued a nod for the nystatin and triamcinolone acetonide cream USP, 100,000 units/gram and 1 mg/g. The drug is a generic version of Mycolog-II cream, 10,000 units/g, 0.1%, of Delcor Asset Corporation.
Recently, in one of the editions of The Equitymaster Research Digest, we have highlighted how timely approvals from the FDA boosted the growth (Subscription Required) of pharma companies.
According to IMS Health sales data, for the 12-month period ending August 2016, the Mycolog-II (Nystatin and Triamcinolone Acetonide) Cream, 100,000 units/g, 0.1% market achieved annual sales of approximately US$120.9 million.
Notably, Glenmark's current portfolio consists of 111 products authorized for distribution in the US marketplace and 60 ANDAs pending approval with the USFDA. In addition to these internal filings, whether Glenmark continues to recognize and discover various development partnerships and accelerate the growth of its existing portfolio will be the key thing to watch out for going ahead.
Public sector banks are trading on a mixed note with Allahabad Bank and Bank of Maharashtra leading the losses. According to a leading financial daily, State Bank of India (SBI), the country's largest lender has issued and allotted 25,000 AT1 Basel III compliant Non-convertible, Perpetual, Subordinated, Unsecured Debt instrument. The nature of debenture, of face value Rs 10,00,000 each will be at par through private placement bearing coupon at 8.39% per annum payable annually with call option after 5 years or any coupon payment date thereafter aggregating to Rs 25 billion in third tranche. Share price of SBI is currently trading down by 0.6% on the BSE.
Meanwhile, DCB Bank is also planning to raise up to Rs 3 billion by issue of debt securities including Tier II Bonds, on private placement basis. The meeting of the Capital Raising Committee of the Board of Directors of the Bank will be held on October 29, 2016, inter alia, to consider and approve proposed issue of debt securities.
In another development, the government has allowed 100% foreign direct investment (FDI) in 'other financial services' carried out by non-banking finance companies (NBFC's) as the government continues with the liberalization of overseas investments regime.
The investment would, however, be subject to sector conditions such as minimum capitalization norms specified by the regulator or government agency concerned. Under the current rules, 100% FDI is allowed through automatic route for 18 specified NBFC activities that include merchant banking, stock broking, credit rating, housing finance and rural credit.
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