After opening the day in green share markets in India witnessed choppy trading activity and are presently trading below the dotted line. Sectoral indices are trading on a mixed note, with stocks in the realty sector and stocks in the power sector witnessing maximum buying interest. While stocks in the IT sector are leading the losses.
The BSE Sensex is trading down by 20 points (down 0.1%) and the NSE Nifty is trading down by 12 points (down 0.1%). Meanwhile, the BSE Mid Cap index is trading up by 0.8%, while the BSE Small Cap index is trading up by 1.2%. The rupee is trading at 63.66 to the US$.
In news from stocks in the oil and gas sector. Oil India Ltd. (OIL) share price is in focus today after the oil major announced two hydrocarbon discoveries during 2nd and 3rd quarter of 2017-18 through its exploratory efforts.
The discoveries were made in the Dumduma Petroleum Mining Lease (PML) in the Upper Assam basin. The first well discovery in South Chanmari-5 encountered multiple sands in Narpuh and Lakadong+Therria (LK+TH) formations of Eocene age. On testing, a 10m LK+TH sand at a depth of 4290m, produced gas at the rate of 50,000 scmd.
The second well discovery Hukanguri-2 encountered two zones, one each in Narpuh and LK+TH formation. On testing, a 18m Narpuh sand, produced oil at the rate of 55m3/d. Presently, the well is under extended production testing.
The oil discovery in Hukanguri-2 is the first commercial discovery in Narpuh formation. As per the company, this discovery will open up new avenues for exploration in Narpuh play in Upper Assam basin. Both these discoveriies will help in enhancing the oil & gas production with future appraisal & development activities.
At the time of writing, OIL share price was trading up by 0.8%.
Moving on to news from stocks in the pharma sector. Biocon share price is among the most active stocks today after Biocon and Biocon and Mylan's proposed biosimilar trastuzumab was approved by Brazilian regulatory agency ANVISA, through their partner Libbs Farmaceutica (Libbs).
Biosimilar trastuzumab, indicated for breast cancer treatment, has been co-developed by Biocon and Mylan. Biocon said currently biosimilar trastuzumab will be manufactured by it and supplied to Libbs for commercialisation in Brazil.
Earlier this month, the US health regulator approved biosimilar trastuzumab. The proposed biosimilar is also under review by regulatory authorities in Australia, Canada, Europe and several emerging markets.
Biocon share price was trading up by 0.6%.
The Indian pharmaceutical industry has come under a lot of regulatory pressure in the past few years.
The sector has faced great volatility over the years.
We had written about the current predicament of Indian pharma companies in one of the premium editions of the 5 Minute WrapUp:
- Over the past few years, risk in the US markets has increased. The US Food and Drug Administration has become stricter on products entering US borders. Surprise inspections have increased and companies are being issued warning letters. This has impacted the business and earnings of Indian pharma players, causing major volatility for the sector.
Is the Worst Over for all the Pharma Stocks?
The list of pharma sector woes is long. So, is there light at the end of the tunnel? Girish Shetty, Research Analyst thinks there is.
As per him, it doesn't make sense to paint all pharma stocks with the same brush. The leaders of the industry will certainly survive this phase. There are interesting, niche pharma stocks that are worth your attention.
Facing pricing pressures in the domestic and export markets, currency fluctuations, as well as manufacturing issues related to their plant, there is a transformation happening in the overall sector as to how business is done and will be done in the future.
This article was originally published in English at www.equitymaster.com
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