The Indian markets ended the day on a firm note as selected index heavy weights led the gains. The BSE-Sensex ended higher by 244 points or 0.86% while the NSE-Nifty closed higher by 74 points or 0.86%. Midcaps and smallcaps shared the enthusiasm as the representative indices ended higher by 1.1% and 1.4% respectively. Amongst the sectoral indices pharmaceuticals and realty stocks were trading firm while the banking and metal stocks were amongst the key underperformers.
Pharmaceutical stocks ended the day on a firm note led by Sun Pharmaceuticals and Cadila Healthcare. The stock of Sun Pharmaceuticals was on fire today with the same closing higher by 8% and adding as much as 78 points to the gain of the Sensex. Sentiments seem to be buoyed by two key developments - the completion of the Ranbaxy merger as well as the settlement of the Angiomax drug patent litigation with US-based The Medicines Company. With the completion of the latter, it would allow the company to market generic bivalirudin product in the US on 30 June 2019, or earlier in some circumstances. The market for this drug is estimated at US$ 600 m; what is more is that Sun Pharma could possibly enjoy six months exclusive sales on this drug as well. With the surge in the stock price - which hit its all time high figure today - the company has now become the fifth largest company by market capitalisation in the country.
Auto ancillary stocks ended the day on a weak note with Asahi India and Bosch leading the pack of losers. As per a leading business daily, Bosch has declared a lock down at its Jaipur facility due to the ongoing worker unrest at the unit. The company has decided to take this move after output was cut by as much as 70% on account of the workers proceeding on an 'illegal go slow' action since March 19, 2015. Further, the labour union is believed to have gone on a hunger strike since April 2, 2015. As per reports, the company does not expect to see any major issue with meeting its customers' requirements considering that it has the inventory built up, and production from officers who have been trained to work in production. As per the company, it has been in wage settlement negotiations for over 20 months now. While the stock of Bosch continues to trade close to its yearly high price, it has seen some correction in the past few weeks. The stock closed the day lower by about 0.8%.