Indian equity markets started the day on a negative note, but quickly moved into the positive territory. However, these gains were eroded in afternoon trades amid a volatile session that saw key benchmark indices moving in a broad range and finally close in the red. IT, pharma and metal sectors led the pack of gainers. While the BSE-Sensex closed lower by 72 points, the NSE-Nifty closed lower by 27 points. BSE Mid Cap and the BSE Small Cap closed on a negative note.
As regards global markets, Asian indices closed in the red. European indices have also opened in the red. The rupee was trading at Rs 62.5 to the dollar at the time of writing.
A leading financial daily reports that the rating agency, Standard & Poor's has reaffirmed sovereign credit rating on India citing a negative outlook for the long-term. The company has affirmed 'BBB-'long term /'A-3' short term sovereign credit rating on India. The rating agency has turned confident about the institutional strengths of India and high international reserves backed by lowering external debt. However, the weaknesses still remain. Lack of adequate structural reforms, subdued growth and uncomfortable government debt levels are the concerns cited by the rating agency. The worries have stemmed from the fact that the significant slowdown in real growth has complicated government's debt dynamics and its ability to undertake reformist measures. Therefore, the overall outlook remains negative and the agency might lower the rating to speculative grade from the current investment grade next year. And if the new government is found incapable of revival of India's low GDP growth, the downgrade stands imminent.
According to a leading financial daily, Wockhardt has finally received some good news. Medicine and Healthcare Products Regulatory Agency, UK, (UKMHRA) has eased restrictions, allowing it to supply most of the products manufactured at Kadaiya facility in Nani Daman to the UK. Last month, UKMHRA had imposed restrictions on import of medicines made at Kadaiya for violation of norms, the second Wockhardt plant to face such action in as many weeks. However, it will take a revenue hit of nearly one million pounds due to import restrictions imposed by the UK health regulator.