Despite reports of higher GDP growth, the benchmark indices failed to elicit investor interest and languished in the red till the closing hours. Selling activity was largely seen in realty, telecom and metal stocks. BSE Sensex edged lower by around 61 points (down 0.3%) whereas NSE Nifty edged lower by around 13 points (down 0.3%). BSE Midcap and Small cap indices were not spared either as they closed lower in the vicinity of 1% each. While Asian across the board closed lower today, European stocks have opened mostly on a negative note. The rupee was perched at Rs 47.01 to the dollar at the time of writing.
As per the latest release, Indian economy grew at its fastest clip in nearly three years in the quarter ended June 2010. The GDP growth of 8.8% was largely due to strong manufacturing growth of 12% YoY and improved farm output. Financing, insurance and real estate grew 8% as against 11.8% in the corresponding quarter of FY09. The higher GDP numbers may make it easier for the central bank to raise interest rates going forward.
As per a business daily, biotechnology major Biocon is all set to launch its skincare portfolio as it seeks to expand the range of therapeutic segments in which it offers products. Biocon will also start selling ophthalmology drugs-used to treat complications related to glaucoma and eye surgery in key US and other developed markets. The company estimates the market potential for the same at around US$ 5 to 7 bn. In 1QFY11, the company’s domestic branded formulations business grew by 28% YoY during the quarter led by the therapeutic areas of diabetology, cardiology, nephrology and oncology.
PSU aluminium maker Nalco has expressed interest in buying stakes in Indonesian coal mines to secure supplies for its aluminium project in East Kalimantan at Borneo island. The company wants to invest in coal mines that can produce coal with heating value of more than 5,000 kcal/kg and which are able to produce 10 million tonnes per annum of coal from 2014.
Nalco needs 8-10 m tonnes per year of thermal coal, of which half will be used to feed its East Kalimantan project and the remainder for its operations outside Indonesia. In Indonesia, Nalco plans to build a 0.5 m tonnes aluminium smelter and a 1,250 megawatts coal-fired power plant, estimated at an investment of US$ 4 bn.