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Following a negative trend since the opening of the trading day, the Indian Indices have continued to remain under pressure in the post noon trading session. Sectoral indices are trading on a negative note with stocks from the IT, pharma and banking sectors bearing the maximum brunt.
The BSE-Sensex is trading lower by 152 (down 0.6%) and the NSE-Nifty is trading down by 54 points (down 0.7%). The S&P BSE Midcap index is trading down by 0.6% while the S&P BSE Smallcap index is trading down by 0.2%. Gold prices, per 10 grams, are trading at Rs 25,215 levels. Silver price, per kilogram, is trading at Rs 34,216 levels. Crude oil is trading at Rs 2,770 per barrel. The rupee is trading at 66.80 to the US$.
Pharmaceutical stocks are trading on a weak note with Elder Pharma and Piramal Enterprises witnessing maximum selling pressure. As per a leading financial daily, Sun Pharmaceuticals Industries has received approval from the US Food and Drug Administration (USFDA) to make a generic version of Novartis AG's cancer drug Gleevec. The company stated that it is eligible for six months marketing exclusivity in the US.
Gleevec is patented by Novartis and has annual sales of US$ 2.5 billion in the US. Under the terms of a settlement agreement with Novartis Pharmaceuticals Corporation, the company is permitted to launch its version of generic Gleevec in the United States on 1st February, 2016.
Sun Pharmaceutical Industries is an international specialty pharma company. The company in its second quarter results of financial year 2015-16 (2QFY16) had reported a 46% YoY decrease in its net profit. If you are interested in the stock, here is our detailed analysis of the results (subscription required).
Presently the stock of Sun Pharmaceuticals is trading up by 5%.
Stocks in the power sector are trading mixed with KSK Energy and Adani Power leading the gains. As per an article in Economic Times, 2.92 crore solar power panels were imported from China during April-June. This constituted about 66% of the total solar power panel imports of the country during the concerned period. In the previous fiscal, solar panel imports from China constituted over 70% of the total imports of the country. For 2013-14, the same constituted over 65% of the total imports by the country.
Besides China, India depends heavily on Taiwan and Malaysia for solar power panels. To reduce this dependence the government has listed several initiatives to promote domestic production. One of this includes reduction/exemption of custom and excise duty on several input raw materials required for manufacturing of cells and modules. Moreover, it also provides capital subsidy to manufacturers under special incentive package scheme (SIPS) & Modified Special Incentive Package Scheme (M-SIP).
As reported, the total installed solar power generation capacity as on November 26, 2015 was 4,666.60 MW. Further, the total installed wind power generation capacity stood at 24,677.72 MW as on October 31, 2015. It is important to note that the government has increased India's solar power capacity target under the Jawaharlal Nehru National Solar Mission (JNNSM) by five times from 20,000 MW to 1,00,000 MW by 2022.
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