Asian stock markets are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 0.2% while the Hang Seng is up 0.7%. The Shanghai Composite is trading up by 1.4%. The three major US stock indices closed higher on Monday as investors applauded a strong US earnings season with results from Berkshire Hathaway impressing and Facebook lifting Nasdaq after a report it was planning new services.
Back home, India share markets have opened the day on a flat note. The BSE Sensex is trading up by 35 points while the NSE Nifty is trading up by 17 points. The BSE Mid Cap index opened and BSE Small Cap index opened the day up by 0.4% & 0.2% respectively.
The rupee is currently trading at 68.68 to the US$.
Sectoral indices have opened the in on a mixed note with metal stocks and automobile stocks witnessing maximum buying interest. While, bank stocks and power stocks have opened the day in red.
In the news from the pharma sector. As per an article in a leading financial daily, Sun Pharma, has launched Kapspargo Sprinkle in the US. The drug is used in the treatment of chest pain, heart failure and high blood pressure.
Kapspargo Sprinkle, approved by USFDA is a patented formulation of metoprolol succinate, the only extended-release sprinkle formulation of the beta1-selective adrenoreceptor blocking agent called beta-blocker.
Reportedly, the metoprolol succinate extended release tablets have sales of around US$600-700 million sales per annum in US.
Kapspargo Sprinkle pellets can be sprinkled over soft food or administered via a nasogastric tube, and are designed to facilitate long-term, once-daily administration, particularly for patients who have difficulty in swallowing tablets.
Kapspargo Sprinkle capsules may make it easier for patients to take their antihypertensive medication. This innovative product is the latest example of Sun Pharma's use of advanced technology to create novel formulations.
The extended-release capsules are available in dosage strengths of 25 mg, 50 mg, 100 mg and 200 mg.
Sun Pharma share price opened up by 0.3%.
To know what's moving the Indian stock markets today, check out the most recent share market updates here.
Meanwhile, in the latest edition of our stock market podcast, we talk to Rahul Shah, Co-Head of Research, about his buy-list for this market. Have a question for Rahul? Write in. Don't miss it! Sign up for our free podcast today. Visit SoundCloud, iTunes or Stitcher.
Moving on to the news from IPO space. As per an article in a leading financial daily, Sembcorp Energy India, an independent power producer, and construction company Montecarlo have received capital markets regulator's go ahead to float an initial public offer.
With this, the total number of companies getting approval for IPO has reached 39 so far this year.
Sembcorp Energy's IPO comprises fresh issue of shares worth up to Rs 41 billion and an offer for sale (OFS) of up to 146.8 million equity scrips by the existing shareholders. This includes sale of 128.9 million shares by Sembcorp Utilities and up to 17.8 million equity scrips by Gayatri Energy Ventures.
Speaking of the IPOs, The IPO of HDFC Asset Management Company closed on Thursday, 27 July 2018.
At the end of the third day, the IPO was subscribed a whopping 83 times!
It listed today at a 58% premium.
Now, the question is: Why such a crazy rush for this IPO?
The short answer is the HDFC brand. The HDFC Group stocks have been such phenomenal wealth-creators that no investor wants to miss any opportunity to pick up a stock with the HDFC brand tag.
The chart below shows the number of times you could have multiplied your wealth by being an early investor in any HDFC Group company.
The HDFC Group of Multibaggers...
As you can see in the chart, the returns translate as below:
HDFC Ltd delivered compounded returns of 28% over 28.6 years.
HDFC Bank delivered compounded returns of 27% over 23.2 years.
Gruh Finance delivered compounded returns of 22% over 25.5 years.
HDFC Standard Life Insurance delivered absolute gains of 75% in a little over eight months from its issue price of Rs 290 per share.
In Ankit Shah's premium newsletter Equitymaster Insider, he'd also recommended one HDFC Group company as a long-term investment. It's currently slightly above the recommended maximum buy price. But should it correct, it could be a lucrative opportunity to build long-term wealth (requires subscription).
This article was originally published in English at www.equitymaster.com
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