Tuesday November 6, 01:30 PM
Profit booking time... |
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By Equitymaster.com
Although in the positive, the broader markets shed some of their gains as profit booking was witnessed during the previous hour of trade. The advance to decline ratio is poised at 7:3 on the BSE. Heavyweights in the power sector are registering the highest gains currently.
The BSE Sensex is trading at 19,684 (up 93 points) while the NSE Nifty is trading at 5,880 (up 32 points). The rupee is trading at 39.29 to the dollar.
Indian pharma stocks are trading mixed with Dr. Reddy (REDY.BO, news) 's and Biocon (2% each) leading the pack of gainers. On the other hand, Dabur Pharma is trading lower by 4%. As per a leading daily, the Drug Controller General of India (DCGI) is considering giving fresh licenses to 78 of the 150 combination drugs, which were earlier categorised as "need further examination", provided pharma companies furnish data to prove their stability, i.e. the specified therapeutic effect. Companies generally take up to 3 months to test the stability of drugs. For the balance 72 combination drugs, companies will have to conduct studies of new combinations to prove their safety and efficacy that generally takes 6 to 12 months. For some drugs it may even take as long as 4 years. It maybe noted that 294 combination drugs worth around Rs 35 bn were asked to be withdrawn earlier because companies were marketing them without regulatory approval from the DCGI. The DGCI had categorised them into "absurd", "banned", "rejected", "need further examination", "need clinical trials and bioequivalence studies" and "approved categories".
Engineering stocks are trading mixed with Engineers India (6%), Thermax (THMX.BO, news) and BHEL (3% each) leading the pack of gainers. On the other hand Punj Llyod is trading lower by 2%. BHEL (BHEL.BO, news) has been among the top gainers over the last month appreciating by as much as 25%. During this period, the company emerged as the likely winner of a major contract for the supply of boilers for NTPC's 1,320-MW stage-II thermal power project in Barh, Bihar. While the contract price has not been decided, BHEL is the only vendor bidding for the project. It may be noted that the contract for stage-I went to Technopromoexport, Russia for Rs 190 bn, which could be taken as a benchmark for stage-II. BHEL also achieved a topline growth of 19% YoY in 2QFY08 led by 22% YoY growth in 'power' segment sales. Operating margins expanded by 3.8%, owing to lower raw material and staff costs (both as percentage of sales), while bottomline grew 91% YoY.
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