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The Indian share markets extended the gains during the noon trading session despite lower Asian markets. All sectoral indices are trading in the green with auto and consumer durables stocks witnessing maximum buying interest.
The BSE Sensex is trading higher by 200 points (up 0.8%) while the NSE Nifty is trading higher by 63 points (up 0.8%). The BSE Mid Cap index is trading up by 1% and BSE Small Cap index is trading up by 1.3%. Gold prices, per 10 grams, are trading at Rs 28,710 levels. Silver price, per kilogram is trading at Rs 40,640 levels. Crude oil is trading at Rs 3,213 per barrel. The rupee is trading at 68.72 to the US$.
Pharma stocks were trading mixed with Elder Pharma and Biocon Ltd witnessing the maximum buying interest. According to an article in a leading financial daily, Sun Pharmaceutical Industries has launched BromSite (bromfenac ophthalmic solution) in the US market.
The product is a nonsteroidal anti-inflammatory drug (NSAID) indicated for the treatment of postoperative inflammation and prevention of ocular pain in patients undergoing cataract surgery. BromSite will be marketed by Sun Ophthalmics, the company's branded ophthalmic business division.
Moreover, the drug is a first branded product launched by the company in the USA. Approved by US Food and Drug Administration (USFDA), Sun pharma aims to focus on the Specialty Business.
Considering the pharma's regulatory distresses, are Indian pharma companies now adapting to the scrutiny by the USFDA? Bhavita Nagrani, our pharma sector analyst, shares her insights in one of our premium editions of The 5 Minute Wrap Up (Subscription required).
The launch marks Sun Pharma's entry into the branded drugs business in the US. This a segment that many generic drug companies are targeting as they gain scale and chase steady revenue streams. Going forward, whether Sun Pharma's foray into this segment further enhance its footprint will be the key thing to watch out for.
Sun Pharma's share price was trading down by 0.7% at the time of writing.
Moving on to the news from stocks in steel sector. As per an article in a leading financial daily, Tata Steel UK has signed a Letter of Intent (LoI) with Liberty House Group to enter into exclusive negotiations for the potential sale of its Specialty Steels business. The deal has been signed for an enterprise value of 100-million-pound subject to due diligence and corporate approvals.
The announcement is in line with Tata Steel's overall restructuring strategy of its UK portfolio. The letter gives Liberty House the right to enter into exclusive negotiations for the potential sale of steel assets. The LOI covers several South Yorkshire-based assets including Tata's Rotherham electric arc steelworks, the steel purifying facility in Stocksbridge and a mill in Brinsworth, as well as service centers in the UK and China.
Reportedly, Tata's specialty steel business gives Liberty its first operations able to melt down scrap steel to be turned into finished metal for the aerospace, car and the oil and gas industries. The specialty steel business employs around 1,700 people and includes sites in Britain and China.
Moreover, Liberty Group had also expressed interest in Tata's much larger UK flat steel operations before Tata entered exclusive talks with another steelmaker, ThyssenKrupp AG, to create a European joint venture, the reports noted.
Apparently, after months of uncertainty and delay from Tata, this will be welcome news for the thousands of steelworkers whose jobs depend on the success of this business. The company is pursuing a transformation plan to create a sustainable future for its UK strip products business, the reports noted.
As we all know, Tata Steel's European operations were under the weather for quite some time. In one of our recent editions of The 5 Minute Wrap Up we have discussed the perils of big acquisitions and the difficulty of integrating them. While doing so, it also explains how Tata Steel is bogged down by commodity crash and a general downturn in the UK.
Tata Steel's share price was trading up by 1.3% at the time of writing.
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