Having lost around 860 points in the early morning trade, S&P BSE Sensex ended yesterday's session trading higher by 138 points. Volatility is the word which described yesterday's trading session as the benchmark index fluctuated by around 1200 points.
The poll of exit polls predicted the BJP to win with 112 of the 182 seats. Whereas, BJP managed to win 99 seats- way lower than the expectations of the exit polls.
BJP was expecting a thumping majority. Though this remained a distinct dream and was a validation of the fact that people weren't happy with the government's move of demonetization. The data too revealed that a majority of agriculture-dominated constituencies voted against the BJP.
The closely contested Gujarat elections would ensure that the road to the 2019 general elections would not be a one-way contest. As far as the stock markets are concerned, the markets have a Modi premium attached to the stock prices on account of his big bang reforms which have immensely benefited the organized and corporate sector. A not so thumping majority could possibly undermine the 'Modi premium' that the markets are fetching right now.
As per an article in leading financial daily, Aurbindo Pharma and Dr Reddy's Laboratories have expressed interest in buying out the bankrupt Orchid Pharma.
Orchid Pharma has presence in the injectables segment and active pharmaceutical ingredients segment. Orchid Pharma has two API manufacturing facilities in India and three formulations sites in India. Reportedly, these sites are all approved by the US Food & Drug Administration, UK's Medicines and Healthcare Products Regulatory Agency.
The stock of Orchid Pharma closed yesterday's trade trading higher by 4.8%.
Mr Modi announced investments to the tune of Rs 900 billion to improve the roads and national highway in the northeast in the next two to three years. The government has already sanctioned around 4,000 kilometers of national highway across the north-east at a cost of Rs 320 billion. This would provide opportunities to road developers such as PNC Infratech, Larsen & Toubro, IRB Infrastructure, KNR Constructions etc.
Aarti Industries is expected to be in the news today as the company is scheduled to hold a board meeting on 21 December 2017, to consider buyback of the fully paid-up equity shares of the company.
JMC Projects is expected to be in the news as it secured new orders worth Rs 7.9 billion. The projects secured are EPC contracts in the micro irrigation and commercial projects segment.
Axiscades Engineering Technologies Ltd too would be in news as it completed Phase 1 acquisition of Mistral Solutions Private Ltd.
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