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Indian equity markets began the day's proceedings on a positive note and remained above the dotted line through the entire trading session today amid strong global markets. Sentiment also remained supported by the passage of the long-awaited Goods and Services Tax (GST) Bill in the Upper House of Parliament last week, which paves the way for the rollout of the country's single biggest tax reform since independence. Speaking of GST, my colleague Vivek Kaul, has brilliantly explained what you probably did not hear about GST from the mainstream media. I strongly recommend that you download Vivek's free report on the GST, 'What the Mainstream Media DID NOT TELL YOU About GST.'
At the closing bell, the BSE Sensex stood higher by 104 points, while the NSE Nifty closed higher by 28 points. The S&P BSE Mid Cap and S&P BSE Small Cap indices closed the day higher by 1% and 0.7% respectively. Gains were largely seen in oil & gas, consumer durables and power stocks.
Japanese shares led gains as Asian markets rallied despite weak Chinese trade data. The Nikkei 225 is up 2.44% while Hong Kong's Hang Seng is up 1.57% and China's Shanghai Composite is up 0.93%. European markets are higher today with shares in Germany leading the region. The DAX is up 0.91% while France's CAC 40 is up 0.57% and London's FTSE 100 is up 0.17%.
The rupee was trading at 66.74 against the US$ in the afternoon session. Oil prices were trading at US$ 42.38 at the time of writing.
Shares of Wockhardt Ltd tumbled 10% in today's trade after the company was issued an import alert from the US Food and Drugs Administration (USFDA) for its Ankleshwar plant for alleged violation of good manufacturing practices. This is the drug maker's third plant to receive an import alert from the US drug regulator (Subscription Required). The Ankleshwar unit manufactures active pharmaceutical ingredients (APIs) and was inspected last year by the US regulator.
Wockhardt's two plants at Chikalthana and Waluj have already been banned from exporting drugs to the US by the FDA.
The move is a setback to the company's plans to revive its US business. As per the reports, the share of the firm's US business in the total sales dropped to 22% in FY16 from 24% a year ago because of import restrictions. The Ankleshwar plant contributes 10-15% of the US sales (Rs 9.64 billion in FY16).
According to a leading financial daily, Coal India Ltd (CIL) will hold special forward e-auctions for power producers this month. CIL subsidiaries such as Mahanadi Coalfields Ltd and Central Coalfields Ltd will hold the auctions. This comes at a time when the government plans to provide round the clock electricity to all.
The first phase of the auction was held by the public sector undertaking (PSU) in April while the second phase was held in May. The coal ministry had earlier said power producers being supplied coal through the memorandum of understanding route by CIL will now have to take it via special e-auctions being conducted for the power sector as the government has decided not to extend the pact beyond 30 June.
In another development, CIL reportedly sold linkages worth 18.07 million tonne (mt) annual supplies. This is against a total offering of 18.86 mt. Coal from majority of the sources (mines) was sold at a premium of upto 10% the notified price of fuel. CIL failed to get adequate buyers for linkage auction to sponge iron and cement.
Meanwhile the company maintained 4% growth in production during April-July period, amidst low demand for fuel. Coal sales or off-take grew by a mere 2.6% during the period.
CIL, a major supplier of coal to the power sector, is also eyeing production of 1 billion tonnes by 2020. Coal India's output for this fiscal is fixed at 598 million tonnes. CIL finished up by 0.5% on the BSE.
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