Indian share markets continued to surge in the afternoon session and touched record highs amid gains in international markets. At the closing bell, the BSE Sensex closed higher by 184 points and the NSE Nifty finished higher by 54 points. The S&P BSE Mid Cap finished up by 0.7% while S&P BSE Small Cap finished up by 1%. Gains were largely seen in FMCG sector, realty sector and consumer durables' sector.
Asian stock markets finished higher today with shares in Japan leading the region. The Nikkei 225 is up 0.89% while Hong Kong's Hang Seng is up 0.25% and China's Shanghai Composite is up 0.18%. European markets are broadly higher today with shares in Germany leading the region. The DAX is up 1.01% while France's CAC 40 is up 0.74% and London's FTSE 100 is up 0.22%.
Rupee was trading at Rs 63.38 against the US$ in the afternoon session. Oil prices were trading at US$ 61.42 at the time of writing.
In news from the economy, expressing optimism over India's medium-term economic prospects, global ratings agency, Fitch Ratings in its latest report has stated that the country has the potential to grow at an average of 6.7% per annum over the next five years and will be the fastest growing large economies.
It added that even though this rate of growth is lower than the potential and what policymakers have been aspiring for, it is ahead of the 5.5% growth estimated for China and Indonesia, who are joined at the second fastest rank.
It also said that the country is set to witness a continued robust growth in the working-age population in the next five years, bolstering growth potential, and added that Indonesia, Mexico, Turkey and Brazil will also benefit from a similar trend.
Moving on to news from telecom sector. Idea share price continued to rally and finished up by 10.67% on the BSE after the company unveiled a plan to raise up to Rs 67.50 billion ahead of its merger with Vodafone India.
The board of Idea Cellular approved raising about Rs 32.5 billion from entities under the promoter Aditya Birla Group(ABG) and constituted a committee to evaluate potential routes for raising further capital of up to Rs 35 billion.
The fund infusion was necessitated by the fact that Idea needed to expand its product offerings and strengthen its telecom infrastructure.
The entry of Reliance Jio Infocomm Ltd in September 2016, with free services for almost seven months and cheap tariffs later, has eroded margins and impacted the revenue of rivals.
Meanwhile, Bharti Airtel share price also rallied (up 3.4%) after the company entered into strategic alliance with Samsung to bring a range affordable 4G smartphone options to customers. The partnership is part of Airtel's 'Mera Pehla Smartphone' initiative, under which Airtel aims to partner device manufacturers to build an open ecosystem of affordable smartphones.
Public Sector Bank stocks finished in red in today's trade with UCO Bank share price and Allahabad Bank share priceleading the losses.
The global ratings agency, Moody's Investors Service in its latest report has said that the government's ambitious plan to infuse Rs 2.11 trillion capital over the next two years into public sector banks (PSBs) is likely to help narrow the gap between the capital profiles of Indian public and private sector banks.
Moody's believed that the capital infusion will also help public sector banks build their provisioning coverage ratios as they will be able to allocate much of their operating profits towards loan-loss provisioning without having to worry about the impact on their capital positions.
Moody's further said that the package will facilitate the two key policy initiatives of non-performing loan (NPL) resolution and Basel III implementation.
In news from pharma sector, Lupin share price surged 2.5% in today's trade after the company launched Flucytosine capsules USP, 250 mg and 500 mg, having received an approval from the United States Food and Drug Administration (USFDA) which are AB rated generic equivalent of Valeant Pharmaceuticals International Inc's ANCOBON Capsules.
Flucytosine Capsules USP, 250 mg and 500 mg had annual sales of approximately US$48 million in the US, as per IMS MAT October 2017.
The total filings of abbreviated new drug applications (ANDAs) for generic drugs rose to 1,292 in FY17 from 852 in the previous year. While, faster approvals expedite the commercialisation of product pipelines of domestic pharma companies spurring growth. At the same time however, it has raised the intensity of competition resulting in pricing pressures. The price erosion has been further compounded by a consolidation among US distributors and the decline in the number of products going off-patent over the past few years.
Generic Drug Approvals Hit The Roof
Indian pharma companies catering to the US markets are breathing a sigh of relief. After being adversely affected by import bans and the suspension of new drug approvals from manufacturing facilities in the past three years, there has been a sharp pick-up in new drug approvals in FY17.
With an aim to lower the overall healthcare costs in the country, the USFDA approved a record 763 generic drugs for the financial year ending 30th September.
And here's a note from Profit Hunter:
The Nifty 50 Index traded the week on a volatile note. After opening on a flattish note on Monday, the index plunged nearly 100 points for the day. The selling pressure continued until mid-week, setting a low of 10,405. But the bulls came to rescue on Thursday, where the index recovered some of its losses. Finally, on Friday, the Nifty index opened gap up and rallied strongly to touch a fresh life-time high of 10,566. However, it ended the weekly session marginally up.
Last week, we saw the index breaking out of an important resistance level of 10,500, which could possibly act as a support now, according to the change of polarity principle . This week, it slipped below this level, but recovered immediately to touch a new life-time high. This indicates that the 10,500 level will be a big hurdle for the bears.
So will the bears challenge the 10,500 level in the coming week or can we see the bulls maintaining the momentum?
Let's track it...
Nifty 50 Index Hits New Life-time High
This article was originally published in English at www.equitymaster.com
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