Stock markets in India are trading in a range-bound fashion amid weak Asian markets as the rupee trimmed losses after hitting 72 against US dollar in the opening trade. Losses are largely seen in bank stocks and PSU stocks.
The BSE Sensex is trading down by 4 points and the NSE Nifty is trading up by 4 points. Meanwhile, the BSE Mid Cap index is trading up by 0.6% while the BSE Small Cap index is trading up by 0.3%. The rupee is trading at 71.90 to the US dollar.
IT stocks are trading on a mixed note with Oracle Financial Services & Wipro being among the top gainers. As per an article in a leading financial daily, Infosys share price is in focus today as the company announced a joint venture with Temasek in Singapore.
The joint venture will integrate teams from Infosys and the operations of Temasek's wholly owned subsidiary in Singapore, Trusted Source Pte, which currently delivers IT services to Temasek and a number of other clients.
As part of the transaction, Infosys will acquire a 60% stake in the joint venture and Temasek will hold 40%.
Reportedly, Infosys gains significant capacity in terms of workforce as it focuses on strengthening its footprint in Southeast Asia, while Temasek will see a rapid enhancement of its IT services through the augmented capabilities of the joint venture entity.
To know more about the company, you can access to Infosys' Q1FY19 result analysis and Infosys' 2017-18 Annual Report Analysis on our website.
To know what's moving the Indian stock markets today, check out the most recent share market updates here.
Moving on to the news from the pharma sector. Sun pharma share price plunged over 5% in the morning trade today on buzz of observations being issued by the US drug regulator for its Halol plant.
According to reports, the US Food and Drug Administration (USFDA) issued six observations for its Halol unit in Gujarat.
The observations include aspects such as lack of appropriate test measures for lab controls along with some procedural issues too.
Further, the report quoted observations such as procedures designed to prevent objectionable microorganisms were not followed. It also said that written stability programme did not include sample size based on statistical data.
The stock erased some of its early morning losses and was trading 3.4% lower on the BSE at the time of writing.
Note that, Sun Pharma had hit a 52-week high of Rs 679 on the BSE last week. In past three months, it had outperformed the market by surging 36% as compared to a 9% rise in the benchmark index.
Speaking of pharma stocks, the rupee's recent weakness has pushed up the BSE healthcare index, which was (26% down) at the bottom of the market for the past three years. However, the index has been the top performer in the past month and is up 11%.
In the past three months, the BSE healthcare index has gained as much as 23%. In comparison, BSE Sensex is up about 9% during the same period.
Among the individual stocks, Sun Pharmaceutical Industries, Dr Reddy's Laboratories, Aurobindo Pharma, and Glenmark Pharma outperformed the index by gaining in the range of 24% to 36%, while Divi's Laboratories and Lupin were up 13% and 10%, respectively.
Beating the Benchmark
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This article was originally published in English at www.equitymaster.com
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