Ahead of the election results the Indian equity markets touched the new high levels. The Sensex breached the 24K mark during the morning trading session. However, post noon, the index pared some of its gains and closed below the 24k. The BSE-Sensex ended with gains of about 320 points, while the NSE-Nifty closed higher by 95 points. Barring stocks from healthcare sector, all the sectoral indices closed in the green. The BSE Mid Cap and BSE Small Cap indices too ended the day on a positive note with gains of about 1.44% and 1.71% respectively.
As regards global markets, majority of Asian stock markets closed in the green, while European markets opened on a firm note. The rupee was trading at Rs 60.44 to the dollar at the time of writing.
Stocks of pharmaceutical companies ended the day on mixed note. Dr Reddy's and Indoco remedies led the pack of losers while Panacea biotech and Aurobindo pharma were among leading gainers. Dr Reddys declared its results for quarter and year ended March 2014 recently. During 4QFY14, the company's sales witnessed poor growth of 4% YoY on the back of decline in sales of its active pharmaceutical segment. For the full year, revenues were up by 14% YoY. The formulations segment witnessed healthy growth of 27% YoY for FY14 and 21% YoY for 4QFY14. For full year, the Indian formulations were just up by 8% YoY; 18% YoY for 4QFY14. The Active pharmaceutical segment posted meek growth of 1% YoY for the year and for the quarter, the growth declined by 35% YoY. The operating margins of the company stood at 25% and 23% for the full year and the quarter ended March 2014 respectively. Net profits were up by 28% YoY for the year. However, net profits for the quarter were down by 16% YoY due higher taxes and depreciation. Dr Reddys closed down by 4%.
Markets continue to be in an unrelenting mood. It seems that every bit of positive information is getting priced in with election results just two days away. With most exit polls giving NDA a thumping majority, the northward journey may well continue in the days to come. Even India's Warren Buffett, aka, Rakesh Jhunjhunwala believes that this rally is just a beginning of what is going to be "Mother of All Bull markets" in India. It is true that policy deadlock at the Centre handicapped markets in the UPA regime. However, if NDA assumes power this time around we may well have an era where businesses would flourish without bureaucratic hindrance. But it nevertheless seems that the markets are pricing in this possibility way in advance.
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