Sensex Surges In Afternoon Session; Metal Stocks Top Gainers

After opening the day in green, share markets in India witnessed buying an interest in the afternoon session and ended the day strong. Gains were seen across most sectors with stocks in the metals sector and stocks in the FMCG sector, leading the gains.

At the closing bell, the BSE Sensex stood higher by 348 points (up 1.1%) and the NSE Nifty closed higher by 112 points (up 1.1%). The BSE Mid Cap index ended the day up by 1%, while the BSE Small Cap index ended the day up by 1.2%.

Asian stock markets finished higher mixed, while the Japanese indices continued their rise from a record close. As of the most recent closing prices, the Hang Seng was higher marginally by 0.2% and the Shanghai Composite was down by 0.1%. The Nikkei 225 was up by 0.5%. European markets too were trading marginally in green. The FTSE was 100 up by 0.2%. The DAX was higher by 0.1% while the CAC 40 was flat.

The rupee was trading at Rs 65.05 against the US$ in the afternoon session. Oil prices were trading at US$ 50.84 at the time of writing.

In the news from pharma sector, Cadila Healthcare received final nod from US drug regulator for Desvenlafaxine tablets.

As per the news, the company has received final approval from the USFDA to market Desvenlafaxine extended-release tablets, 50 mg and 100 mg.

The drug, which is used to treat major depression, will be manufactured at the group’s formulations manufacturing facility at Moraiya, Ahmedabad.

Owing to the above development, Cadila Healthcare Ltd share price witnessed buying interest today and closed the day up by around 2.4%.

Speaking of pharma companies and drug approvals, note that USFDA alerts on Indian pharma companies have increased over the past few years. Regulators used to visit the plants every two years. Now they come every eight months. Increasing inspections have led to a total of 41 import alerts in the past eight years – 33 of them (80%) in just the last four years (2013-16). This clearly signifies increased USFDA scrutiny on Indian pharma firms. If that wasn’t enough, increasing pricing pressure in the generics segment has dented realisations.