Indian equity markets had a positive trading session today. The indices began the day's proceedings on a firm note, but trading thereafter remained largely rangebound. Enough interest was maintained in the final trading hour as the indices closed well above the dotted line. While the BSE Sensex today closed higher by 119 points, the NSE-Nifty closed higher by 35 points. Both the BSE Mid Cap and the BSE Small Cap, also did well and gained 0.4% and 1% respectively. Gains were largely seen in IT and healthcare stocks.
As regards global markets, most Asian indices closed firm today while European indices have also opened in the green. The rupee was trading at Rs 61.85 to the dollar at the time of writing.
As per a leading business daily, Lupin has received approval from the USFDA to launch the generic versions of 3 important drugs viz., Trilipix, Trizivir (anti-HIV) and Cymbalta (depression). As far as Trizivir is concerned, because of a favourable court ruling, the company is entitled to the 180-day exclusivity period since it was the first-to-file (FTF) for this drug. The annual sales of the drug were pegged at US$ 110 m. Cymbalta, on the other hand, is a blockbuster drug, generating annual revenues of US$ 4 bn. Lupin is among the 6 companies that have received approvals for this drug so far. Both these drugs require complex manufacturing processes and in that sense competition would be relatively limited. Focusing on niche products with limited competition has been a strategy that Lupin has been consciously focusing on for the highly competitive US generics market. Because of this, sales from the US market have grown at a CAGR of 63% over the last 5 years. What is more, the US is expected to be a key growth driver for Lupin in the coming years as well.
As per a leading business daily, India is likely to become the third largest economy after the US and China by 2028. This is as per a report published by London-based economic consultancy, Cebr. According to the firm's World Economic League table, India is ranked the 11th largest economy in the world currently. The report expects demographics and economic growth to push India up the table. Whether that actually happens remains to be seen. India, at present, has witnessed considerable economic slowdown on account of firm interest rates and fuel prices, inflation and lack of effective reforms by the government. A sliding rupee and deteriorating government finances have only added fuel to the fire. The potential for significant GDP growth is certainly there. But it will all depend on how effectively the new government is able to implement key reforms that will take India's GDP growth to the next level. Demographics can also be a success story provided India's younger population is equipped with the right skills to gain employment.