Indian share markets climb higher

Thu, 12 Jun 01:30 pm

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Indian share markets continued to firm up in the post-noon trading session. Barring IT, all the sectoral indices are trading in the green with realty and metal stocks being the biggest gainers.

BSE-Sensex is up 100 points and NSE-Nifty is trading 21 points up. BSE Mid Cap is trading 0.7% up and BSE Small Cap index is trading up by 0.8%. The rupee is trading at 59.32 to the US dollar.

Majority of the engineering stocks are trading in the green with Emco Ltd and Kalpatru Power being among major gainers whereas Suzlon and Sanghvi Movers are trading in the red. As per a leading financial daily, the Ministry of Heavy Industries and Public Enterprise has asked BHEL to enter the electricity generation business. The company has said that it has already ventured into power generation through joint ventures with some state generation companies. In light of slowdown in the power sector, the Ministry has asked the company to increase its presence in other areas such as renewable, transportation, transmission and defence. The company has signed an initial agreement with five other public sector enterprises in 2014 for setting up the world's largest ultra mega solar project (4,000 MW) in Rajasthan. The Department of Heavy Industries would be setting up the joint venture company to execute the project valued at Rs 75 bn in the first phase. The joint venture company will have equity shareholding of 26% from BHEL, 23% from Solar Energy Corporation of India, 16% from Sambhar Salt Ltd, 16% from Power Grid, 16% from Satluj Jal Vidyut Nigam and 3% from Rajasthan Electronics & Instruments Ltd. BHEL' s performance has been very disappointing in FY14 with significant erosion in sales and margins. BHEL's 20% of the order book is slow moving. Also, despite employing cost cutting measures the company could not salvage a significant drop in its margins. Non-payment of dues is another issue which the company is facing.

Most of Indian Pharma stocks are trading on a firm note today. Natco Pharma and Biocon are leading the stock of gainers whereas few stocks like Dishman Pharma and Piramal Enterprises are trading weak. As per a leading business daily, Ranbaxy has filed an application for seeking approvals to sell drugs in the US market which is manufactured from its Gurgaon plant. The company has recently filed ANDAs in the US and the generic drugs to be sold are to be manufactured from the unit. Ranbaxy's Gurgaon plant is not among the plants banned by the US FDA (Food and Drug Administration) from supplying drugs. The company has a total of five plants in India that are registered with the US FDA. Apart from the Gurgaon plant, the other four plants are located in Paonta Sahib, Mohali, Toansa and Dewas and are barred by US FDA from supplying medicines to the US market. This move comes at a time when the company has signed a decree with the US FDA for undertaking corrective measure in its four barred plants and Sun Pharma is in a process of acquiring the company. Ranbaxy is trading higher by 1% today.