Sensex Surges 718 Points; Pharma Stocks Lead Gains

After opening the day in green, share markets in India witnessed positive trading activity throughout the day and ended the day in above the dotted line. All sectoral indices traded in green, with stocks in the pharma sector and stocks in the realty sector, leading the gains.

At the closing bell, the BSE Sensex stood higher by 718 points (up 2.2%) and the NSE Nifty closed up by 221 points (up 2.2%). The BSE Mid Cap index ended the day up 2.8%, while the BSE Small Cap index ended the day up by 2.1%.

The rupee was trading at Rs 73.44 against the US$ in the afternoon session. Oil prices were trading at US$ 77.48 at the time of writing.

Asian stock markets finished mixed. As of the most recent closing prices, the Hang Seng was up by 0.3% and the Shanghai Composite was down by 2.5%. The Nikkei 225 was down by 0.1%. Meanwhile, European markets, were trading on a positive note. The FTSE 100 was up by 1.4%. The DAX, was up by 1.3% while the CAC 40 was up by 0.3%

In news from stocks in the pharma sector. Granules India share price was in focus today after the company’s US subsidiary received two observations from the US Food and Drug Administration (USFDA).

The USFDA, after the completion of the inspection of the Chantilly, Virginia based facility, issued two observations in form 483 to the company.

As per USFDA, observations are made in Form 483 when investigators feel that conditions or practices in the facility are such that products may become adulterated or render injuries to health.

Granules India share price ended the day up 8.2%.

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 since FY17.