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Major Asian stock markets have opened the day on a mixed note with stock market in Japan trading lower by 1.4%. While, stock markets in China is trading higher by 0.5%. Benchmark indices in Europe ended their previous session in green with stock market in Germany ending the day higher by 0.5%. The rupee is trading at 67.24 per US$.
Indian stock markets have opened the day on a flattish note. The BSE Sensex is trading marginally lower by 3 points (down 0.01%) and the NSE Nifty is trading lower by 7 points (down 0.1%). While, BSE Mid Cap and BSE Small Cap have moved upwards and are trading higher by 0.3% and 0.4% respectively.
As per an article in Livemint, the government has laid out a plan to divest its stakes in companies it holds through The Specified Undertaking of the Unit Trust of India (SUUTI). SUUTI has holdings in 51 listed and unlisted companies on behalf of the government.
Beneath the plan, the government has decided to pare its stake in ITC Ltd, Larsen and Toubro Ltd (L&T) and Axis Bank Ltd in the first phase. Taking yesterday's closing prices these three companies can fetch the government around Rs 607.8 billion.
Reportedly, the government has split the divestment programme into three parts. Group A, which includes its holding in ITC, L&T and Axis Bank, will be up for divestment first. Group B will include the eight unlisted firms in which SUUTI owns shares. Group C will hold the remaining 40 listed firms held by SUUTI.
Now the interesting fact is that the government has asked Life Insurance Corporation to buy securities worth Rs 300 billion from SUUTIs holdings. That is almost half of SUUTIs holding.
Once again, the government has asked LIC to rescue it to meet its ambitious divestment target. Here is Vivek Kaul's take on LIC coming to the rescue of the government:
In another news update, Biocon recently announced that Mylan NV's marketing authorization application for biosimilar pegfilgrastim has been accepted for review by the European Medicines Agency. Biocon and Mylan are partners in this project.
This medicine is used to treat neutropenia (low white blood cells), which occurs due to chemotherapy. Provided, the company gets the approval, it will bring in significant revenues for the company.
Further, the company also expects more applications for biosimilars to be accepted in the current financial year.
Earlier this year, the company had announced receiving approval to launch biosimilar insulin glargine in Japan. All these positive developments coupled with good quarterly results have led to sharp surge in the stock price.
However, if the company does not get the expected approvals it could be deterrent for the company. The stock is trading higher by 1%.
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