Stock markets in India pared gains to turn flat as the rupee continues to remain weak after 6 straight sessions of fall. Losses are largely seen in metal stocks and FMCG stocks.
The BSE Sensex is trading up by 47 points and the NSE Nifty is trading up by 6 points. Meanwhile, the BSE Mid Cap index and the BSE Small Cap index both are trading flat. The rupee is trading at 71.93 to the US dollar.
Pharma stocks are trading on a mixed note with Biocon & Aarti Drugs being among the top gainers. As per an article in a leading financial daily, Aurobindo Pharma’s wholly owned subsidiary, Aurobindo Pharma USA Inc., has entered into an agreement to acquire commercial operations and three manufacturing facilities in the USA from Sandoz Inc., USA, a Novartis Division.
Reportedly, the acquisition will provide a unique opportunity to acquire a premier US generics business with a sizable and broad portfolio across key therapeutic areas.
The acquisition is expected to be completed during the calendar year 2019.
At the time of writing, Aurobindo Pharma share price was trading up by 5.7%.
Moving on to the news from the steel sector. ICRA in its latest report has said that sharp depreciation in the Indian rupee may help the domestic steel industry lower imports and boost exports in the coming months. Accordingly, this is likely to improve the country’s overall steel trade balance.
The report highlighted that in the first quarter of the current financial year (Q1FY19) steel exports declined by over 33%, whereas imports rose by over 11%, and as a result, the country turned a net steel importer, after having been a net exporter for the last two years.
Besides, it stated that while the consumption levels are likely to ease in a seasonally weak second quarter, government’s continued thrust on infrastructure spends and expected improvement in rural demand on the back of higher minimum support prices (MSPs) is expected to drive the steel consumption growth momentum in the coming months.
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