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Revealed
India's Third Giant Leap

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Indian Markets Trade Flat
Wed, 6 Jan 11:30 am

After opening the day on a bearish note, the Indian Markets registered some gains and are presently trading near the dotted line. Sectoral indices are trading on a firm note with stocks from the energy, telecom and oil and gas sectors leading the gains.

The BSE Sensex is trading up by 15 points (up 0.1%) and the NSE Nifty is trading up by 10 points (up 0.1%). The BSE Mid Cap index and the BSE Small Cap index are also trading positively, up by 0.5% and 0.7% respectively. The rupee is trading at 66.71 to the US$.

Pharma stocks are trading on a positive note with Dishman Pharma and Cadila Healthcare leading the gains. As per a leading financial daily, Zydus Cadila has announced the strategic acquisition of select animal health brands and a manufacturing unit from Zoetis Inc. This comes as the company's Board of Directors at its meeting approved the proposal to expand its animal health business.

According to the company, the acquisition will help Zydus gain access to a wide range of nutrition as well as therapeutic products. Further, a major boost to Zydus' portfolio would be the addition of livestock farm care products which are well accepted in the market.

On a separate note, the US Food and Drug Administration (USFDA) had recently issued a warning letter to Cadila Healthcare's Moraiya facility. The letter points out failures in standard operating procedures. According to the USFDA, the company has failed to investigate out-of-specification reports that are associated with the potency and content uniformity specifications for warfarin sodium, a narrow therapeutic index drug.

Presently the stock of Cadila Healthcare is trading up by 3.2%.

Stocks in the power sector are also trading on a positive note with Torrent Power and Jaiprakash Power witnessing maximum buying interest. According to an economic daily, power regulator Central Electricity Commission (CERC) has initiated a suo-moto probe on Tata Power's alleged irregularities in commissioning of four of five units of its Mundra ultra mega power project (UMPP).

The regulator is acting on complaints received from a retired engineer of the Madhya Pradesh Electricity Board. The complaints are regarding non-compliance of provisions of power purchase agreement (PPA) by Mundra mega power project leading to excess billing of Rs 50 billion by Tata Power.

However, the company has denied these allegations on the basis that they are absolutely baseless, devoid of merit and carry neither authentication nor any weight. Scrip of Tata Power is presently trading up by 0.3% on the BSE.

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