Indian markets rush forward

Fri, 22 May 01:30 pm

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After opening the day on a positive note, the Indian Indices are trading higher in the post noon trading session. Most sectoral indices are trading in the green with stocks from the banking and capital goods sectors leading the gainers.

The BSE-Sensex is trading up 192 points (up 0.69%) and the NSE-Nifty is trading up 48 points (up 0.57%). The BSE Mid Cap index is trading up 0.4% and the BSE Small Cap index is trading up 0.3%. Commodity prices are trading on a positive note. Gold prices, per 10 grams, gained 0.6% or Rs 165 and are trading at Rs 27,273 levels. Silver price, per kilogram, gained about 0.7% or Rs 273 and is trading at Rs 39,439 levels. Crude oil is trading flat at around Rs 3,873 per barrel. The rupee is trading at 63.50 to the US dollar.

Pharma stocks are trading mixed with Ranbaxy Lab and Wockhardt Ltd witnessing maximum buying activity. Stock of Wockhardt Ltd rose over 2% today in the morning trade after one of its products received the Qualified Infectious Disease Product (QIDP) status from the US Food and Drug Administration (FDA). The company on Thursday reported the QIDP approval from FDA was granted for WCK 4873, a product from their new drug discovery program. This is the third product for the company, after WCK 771 and WCK 2349 last year, to receive this desirable status which will provide a strong boost to its drug development program. The company stated that this new product is a new class of antibiotic drug which will be used for the treatment of Community Acquired Bacterial Pneumonia which has risen by alarming proportions globally. At the time of writing, the stock of Wockhardt was trading up by 2.5%.

Auto stocks are also trading on a mixed note with Escorts and Tata Motors leading the gains. Bajaj Auto's March quarter actual numbers did not met the Street's estimates because of higher provisions for gratuity and loss due to a fire at the Akurdi plant in January. The company's realizations were up, after adjusting the higher expenses. Bajaj managed to improve realizations by 15% over a year, for both domestic and export segments. Net sales for the company declined by 4% YoY (year-on-year) and 16 per cent sequentially to Rs 47 bn, despite a sharp fall in volumes while the net profit was reported at Rs 6.2 bn (down 19% YoY). The company has been facing headwinds in the domestic markets although analysts are in the belief that exports would continue to support growth even if domestic volumes remain a challenge. Stock of Bajaj Auto is currently trading down about 1%.