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Indian equity markets continued to remain under pressure in the afternoon session amid weak international markets. At the closing bell, the BSE Sensex stood lower by 443 points, while the NSE Nifty finished lower by 151 points. The S&P BSE Mid Cap & the S&P BSE Small Cap finished lower by 3% and 2.4% respectively. Losses were largely seen in metal & capital goods stocks.
Asian markets finished deep in the red as of the most recent closing prices. Stock markets in Hong Kong and China ended the day lower by 3.5% and 1.9% respectively. European markets too are trading weak. At the time of writing, stock markets in Germany and France were trading lower by 2% each.
The rupee was trading at 66.90 against the US$ in the afternoon session.
As per an article in Livemint, Glenmark Pharmaceutical has got an approval from US Food and Drug Administration (USFDA) to launch a generic version of AstraZeneca Plc's Xylocaine ointment.
Reportedly, the ointment is used to treat certain skin conditions associated with itching and pain. Further, this ointment had sales of US$ 370 million in the twelve months ended July.
Currently, the company has 62 abbreviated new drug applications (ANDAs) pending approval with the US health regulator.
In the last few quarters, Glenmark's performance has been severely impacted by global headwinds. But fiscal 2017, has shown some improvement, in spite of pricing pressures in the US and domestic market.
The year FY17 will see launch of Zetia generics under low competition. Glenmark will be the only the player in the market for a period of 4-6 months. The branded market size of Zetia is US$1.6 bn and Glenmark already holds approval.
The traction from this product coupled with new product approvals will be the key things to watch out for going forward.
In another news update, State Electricity Boards (SEBs) have yet not engaged themselves in increasing tariffs. This is a worry sign for the electricity producers.
Much of the electricity producer's fortunes will depend on the off-takes from the SEBs. And even after implementation of the UDAY scheme, the situation at SEBs will only improve if they take tariff hikes. While some states have taken tariff hikes recently, many states have yet not taken the same on account of political pressures. Increase in tariff hike does not bode down well with the political parties as it takes a toll on their vote bank.
Further, these SEBs had aggregate technical and commercial losses of 24.6% in 2013-14. And this ratio hasn't improved significantly since then. This means that a major portion of the power that is used is not paid for. Unless these issues are addressed, the situation at the SEBs is not going to change drastically even after implementation of UDAY.
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