Thursday February 28, 01:00 PM
Signs of recovery? |
|
By Equitymaster.com
The indices pared some of their early morning losses during the previous two hours of trade. Stocks from the auto, metals, energy and pharma sectors are witnessing buying interest. However, select stocks in the banking, cement and power sector continue to face selling pressure. The selling pressure is however, not restricted to frontline stocks as declines are outnumbering advances by a ratio of 1.3 to 1 on the broader NSE.
The BSE Sensex is trading at 17,800 (down 26 points) while the NSE Nifty is trading at 5,269 (no change). The rupee is trading at 39.82 to the dollar.
Auto components manufacture, Bharat Forge (BFRG.BO, news) 's board has approved a proposal to raise debt of up to US$ 100 m by way of external commercial borrowings or a bank loan. The board has also approved an issue of convertible warrants to the founders totalling Rs 3 bn to help fund its expansion in the non-automotive forgings sector. The move that is in line with the company's plan to support funding of its ongoing organic growth program in the capital goods and non-auto space will also enhance the promoters' stake in the company. While the company uses its capital efficiently and generates a fair amount of cash from internal accruals, the intensity of capital investments have necessitated its current fund raising program. While the stock is trading higher by 3%, its peer Amtek Auto (AMTK.BO, news) is trading lower by 1%.
Sun Pharma (SUN.BO, news) has received US FDA approval to market its generic version of Hoffman la Roche's 'Demadex torsemide' tablets. The drug, a generic version of Hoffman-La Roche's 'Demade', is indicated for the treatment of edema associated with congestive heart failure and renal disease. The 5 mg, 10 mg, 20 mg and 100 mg dosages for which it has received approval had annual sales of about US$ 35 m in the US. This is a positive development for the company and will enable it to augment its product portfolio in the highly competitive US generics market. The stock (up 3%), along with its peers Cipla (CIPL.BO, news) , Wockhardt (each up 2%) and Dr Reddy's (marginally up), is trading firm.
|
