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Depicting strength, Indian equity markets shaved all its early losses and ended flat with positive bias on Tuesday thanks to defensive buying strategy by market-participants, which lifted the benchmarks from doldrums, thereby proving that market’s new found strength was not temporary. In the first half of the session, profit-booking by market-participants after three consecutive sessions’ record rally on concerns of possible monsoon deficit combined with caution ahead of release of the consumer price index (CPI) inflation data for May and the Index of Industrial Production (IIP) data for April due on Thursday, weighed on the sentiment. However, late hour buying by traders led markets log yet other record high closing levels, with both Sensex and Nifty settling above the crucial 25,550 and 7,650 psychological mark respectively.

Sentiments took a hit in early deals after Indian Meteorological Department (IMD) forecasted rainfall in June-September to be below normal at 93% of the long period average, which in terms of quantity, could be the lowest in four years. While, benchmarks also fell off lifetime high levels in early deals amid concerns the rally that made it the best performer among emerging markets this year has exceeded the outlook for earnings. Nevertheless, besides bargain buying activities, positive regional counterparts also aided the recovery.

On the global front, Asian pacific shares settled higher on Tuesday on account of in-line with expectation China inflation data, which though was higher than the previous month’s figure. China CPI in May rose 2.5% year-on-year, while PPI fell 1.4%.for May. The previous month saw CPI rise at 1.8%, and a 2.0% fall for PPI. Meanwhile, European shares were trading mostly positive as reports showed that industrial production in the U.K and France matched street estimates. In the U.K., a report from the Office for National Statistics showed that industrial output in Europe’s third-largest economy climbed 0.4% in April, while in France, a release showed that industrial output rose 0.3 percent in April.

Closer home, while majority of the sectorial indices on BSE settled into negative territory, stocks from Realty, Public Sector Undertaking (PSU) and Oil & Gas counters were the prominent losers. On the flip side, stocks from Consumer Durables, Information Technology and Healthcare counters were the pillars of market’s strength. Losses of cyclical stocks turned out to be the gains for defensive stocks, like software and pharma, as investors looked to reduce volatility in their portfolios. While rupee’s depreciation aided the IT counter, FMCG stocks, which lost steam after India Meteorological Department (IMD) forecasted rains to be below normal this year as the chances of El Nino occurring during monsoon being very high, too recovered by the end of trade. The stocks tanked in intra-day trade given that most of FMCG firms derive substantial revenue from rural India. The overall market breadth on BSE settled in the favour of declines which outperformed advances in the ratio of 1108:797; while 14 shares remained unchanged.

The BSE Sensex settled at 25583.69, up by 3.48 points or 0.01% after trading in a range of 25347.3 and 25711.1. 14 stocks advanced against 16 stocks declining one’s on the index.   (Provisional)

The broader indices were trading mixed; while BSE Mid cap index was down by 0.27%, Small cap index ended up by 0.26%.   (Provisional)

The top gainers on BSE sectoral front, were Consumer Durables up by 3.55%, IT up by 2.32%, TECK up by 1.98%, Healthcare up by 1.97% and FMCG up by 0.12%. On the flip side, Realty down by 2.96%, PSU down by 1.28%, Oil & Gas down by 0.96%, Capital Goods and India Infrastructure Index were down by 0.90% each were top losers on BSE.   (Provisional)

The top gainers on the Sensex were Cipla up by 2.76%, Infosys up by 2.73%, Wipro up by 2.73%, TCS up by 1.98% and Coal India up by 1.78%. On the flip side, BHEL down by 2.87%, ONGC down by 2.74%, Tata Steel down by 2.60%, Hero MotoCorp down by 2.32% and SSLT down by 2.29% were the top losers.  (Provisional)

Meanwhile, finance Minister Arun Jailtley has stated that the government will soon take measures to break the vicious cycle of high inflation and high interest rates impacting Indian economic growth, which stayed below 5 percent for the second year in a row at 4.7 percent during FY14.

Jailtey further said that long inflationary trends have adversely impacted the food and nutritional security of the common man and also sought states’ support in tackling temporary fluctuation in prices. Further, Finance Minister added that prevailing high interest rates to check rising inflation has been impacting the domestic demand. Therefore, the government would like to evolve a mechanism which will address the structural issues and enhance supply. The RBI has raised lending rate three times since September’13 to tame price rise through cooling demand.

Finance Minister further stated that the government aims to create positive action through economic reforms in the forthcoming budget to revive investor sentiment and promote growth. Regarding the GST issue, Finance Minister said that implementation of Goods and Services Tax (GST) has the potential to significantly improve the country’s growth story and the government will soon take measures for early rollout of GST.

India VIX, a gauge for markets short term expectation lost 2.52% at from its previous close of 16.66 on Monday. (Provisional)

The CNX Nifty settled at 7656.4, up by 1.80 points or 0.02% after trading in a range of 7579.3 and 7683.2. 20 stocks advanced against 30 declining one’s on the index.    (Provisional)

The top gainers on Nifty were Infosys up by 3.17%, Tech Mahindra up by 2.72%, Wipro up by 2.69%, CIPLA up by 2.64% and Cairn India up by 2.28%. On the flip side, DLF down by 3.63%, Grasim Industries down by 3.37%, Ambuja Cements down by 3.14%, BHEL down by 3.08% and Tata Steel down by 2.91% were the top losers.

European shares were trading mixed; with Germany’s DAX rising by 0.14%, France’s CAC 40 gaining by 0.12% and United Kingdom’s FTSE 100 declining by 0.46%.

The Asian markets concluded Tuesday’s trade mostly in green,

Asian Indices Last Trade Change in Points Change in %
Shanghai Composite 2052.53 22.03 1.08
Hang Seng 23315.74 198.27 0.86
Jakarta Composite 4946.09 61.01 1.25
KLSE Composite 1876.61 12.92 0.69
Nikkei 225 14994.80 -129.20 -0.85
Straits Times  3293.82 -11.38 -0.34
KOSPI Composite 2011.80 21.76 1.09
Taiwan Weighted 9222.37 59.63 0.65

 

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Market likely to continue its downward move today Indian market fell more than one percent on Thursday to mark a third consecutive day of declines since hitting a record high at the start of the week as Tata Motors slumped after saying its unit Jaguar Land Rover would increase capital spending. The Sensex fell 1.16 percent, or 245.80 points, to end at 20,925.61, to mark its lowest close since Dec 4. The Nifty fell 1.12 percent, or 70.85 points, to end at 6,237.05, closing below the psychologically important 6,300 level. Both indexes also marked their biggest single-day fall since Nov 21. Rate-sensitive stocks such as ICICI Bank also fell on caution ahead of retail inflation data later in the day yesterday, which will be followed by wholesale inflation on Monday and is seen as key for the central bank’s policy review on Dec 18. Tackling inflation will be a priority, finance minister and RBI governor said on Wednesday, after high prices contributed to painful losses for the ruling Congress party in state elections. Despite the fall, the sentiment seems positve on hopes the domestic economy is looking at a trough and on continued foreign investor flows which crossed the 1-trillion-rupee mark earlier this week.

European equities extended a two-week sell-off to close lower on Thursday, as investors booked profits on heightened fears that the U.S. Federal Reserve could act soon start to unwind its bond-buying program. U.S. stocks finished lower on Thursday, extending losses into a third session, as investors considered the timing of any reductions in the Federal Reserve’s monetary stimulus.

Global cues are downcast today with them SGX Nifty is showing 41 points cut in morning trade indicating that Indian market would open in the red today and Nifty is likely to trade between 6260 and 6170 with downward biasness.

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NEWS ROUND UP

  • RBI report says need to gradually cut gilt invest needs of bks (Cogencis)
  • RBI says Fed stimulus taper may lead to global rate cycle upturn (Cogencis)
  • RBI says will soon issue new bank licences (Cogencis)
  • RBI says PSU banks’ falling capital position a “matter of concern” (Cogencis)
  • India Oct CPI rural labourers inflation 12.48% vs 12.44% Sep (Cogencis)
  • India Oct CPI farm labourers inflation 12.65% vs 12.78% Sep (Cogencis)
  • Fitch says rupee fall not to trigger action on India rating for now (Cogencis)
  • Chidambaram says FY14 fiscal deficit target will not be breached (Cogencis)
  • Oil min slaps around $795 mln more fine on RIL over KG-D6 output (Cogencis)
  • India PM says need to expose PSU cos to more competition (Cogencis)
  • Govt may allow exploration of all hydrocarbons in NELP X blocks (Cogencis)
  • Source says India unlikely to join Euroclear bond settlement system (Cogencis)
  • Source says TRAI proposals on media ownership to be out by Dec end (Cogencis)
  • SC bars all Sahara group companies from selling any property (Cogencis)
  • Food minister says mulling to hike sugar export duty drawback rate (Cogencis)
  • Goldman Sachs economist sees gradual pickup in India’s growth FY14 (Cogencis)
  • Bajaj Auto to begin exporting 200cc petrol-run RE60 quadricycle Feb (Cogencis)
  • Power min awaits oil ministry reply on gas supply to Dabhol plant (Cogencis)
  • Drug regulator says found no irregularity at any Wockhardt unit (Cogencis)
  • Source says Hero MotoCorp launched VRS at Gurgaon, Dharuhera plants (Cogencis)
  • US crude oil stocks rise in wk ended Nov 15; petrol, distillates dn (Cogencis)
  • JSW Steel official says see steel prices stable or rising in 2014 (Cogencis)
  • MD says NCDEX plans to soon launch steel HR coil, new gold futures (Cogencis)
  • Nokia urges HC to allow India asset sale (Cogencis)
  • PetroVietnam offers ONGC Videsh 5 oil, gas block via MoU (Cogencis)
  • Eurozone ministers ‘losing patience’ with Greece (BBC)
  • US Federal Reserve to trim stimulus in coming months (var)
  • UK public finances improve in October as economy grows (var)
  • Sri Lanka aims at over 7.5% growth in next 3 years (TOI)
  • Dollar rises to 4-month high versus yen (var)

Indian pharmaceutical industry is a highly knowledge based industry and is ranked world class in terms of technology, quality, purity, stability and international safety, health and environmental protection in production and supply of bulk drugs. Pharma sector plays a major role in the Indian economy as it caters to around 70% of the country’s total medicines demand including drug intermediates, bulk drugs, tablets and capsules.

Indian pharma sector

Increasing Size of Indian pharma sector

At present, market size of the industry stands at around Rs 1,30,000 crore of which about 50% of revenue is represented by industry’s exports, while the remaining comes from domestic consumption. On global front, Indian pharmaceutical industry stands at 3rd largest in terms of volume and 13th largest in terms of value. With the introduction of product patents system since 2005, industry has now become a worldwide exporter of high quality generic drugs to many countries across the world, including the US, Germany, France, Russia and UK among others.

Export of Pharmaceutical Products

Export of Pharmaceutical Products

Indian pharmaceutical sector is highlyfragmented and unorganized with around 24,000 units with only around 330 large units from organised sector. Industry highly resides on innovations, spend a large portion of their revenue on research and development (R&D) activities.

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