Persistent buying activity led the Indian markets to remain firm above the dotted line during the previous hour of trade. Stocks from the realty, banking and consumer durables sectors are leading the pack of gainers at the moment, while those from the IT sector are the sole losers. FMCG and healthcare stocks are amongst the other key underperformers.
The BSE-Sensex is trading higher by 120 points while the NSE-Nifty is up by about 30 points. The BSE Midcap is up by 1.1%, while the BSE Small cap Index is trading higher by 1.3%. The rupee is trading at 44.82 to the US dollar.
Fertilizer stocks are trading in the green with Chambal Fertilizer, Godavari Fertilizer and Madras Fertilizers leading the pack of gainers. Rallis India, a subsidiary of Tata Chemicals, has completed the acquisition of a seeds research firm Metahelix Life Sciences for an all-cash deal of Rs 1 bn. With the acquisition of a majority stake of 53.5% in the Bangalore-based firm, Rallis has become its holding company. The acquisition was aimed at bringing in significant capabilities in seeds segment. The all-cash deal was funded largely through internal accruals. Rallis plans to enhance its stake in the firm up to 100% in five years. Rallis would subscribe to an additional equity of Rs 250 m to take its stake to 59.02% on a fully-diluted basis.
Pharma stocks are currently trading firm Orchid Chemicals, Sterling Biotech, Dishman Pharma. The stock of Sun Pharma has managed to find favour today. This is seemingly on the back of the company receiving a tentative approval from the US FDA (Food and Drug Administration) for a generic version of Roche's Boniva. This drug is believed to be used for the treatment of osteoporosis in postmenopausal women. Considering that this drug has annual sales of US$ 70 m (approximately Rs 3.2 bn) this is a positive development for the company as it throws up bigger opportunities in the US market for the company.