Thursday March 8, 10:30 AM
Cautious optimism... |
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By Equitymaster.com
After the broad based sell off witnessed yesterday, markets opened the day's proceedings on a cautious note on the back of buying activity in select index heavyweights. Buying is being witnessed in select sectors with energy, banking, cement and pharma stocks leading the pack. Steel and auto stocks continue to shed gains.
The BSE Sensex is trading at 12,615 (up 36 points) while the NSE Nifty is trading at 3,644 (up 17 points). The rupee is trading at 44.32 to the dollar.
As per a leading business daily, India's largest pharmaceutical company, Ranbaxy, has been taken to court in the US by a consumer health group, which supports the sale of low-priced generic medicines. The organisation has filed a suit against Ranbaxy and three other generic companies - Mylan, Teva and Barr - as well as Cephalon Inc for allegedly delaying the US launch of 'Modafinil', the generic version of Cephalon's sleep disorder drug 'Provigil'. Indian companies like Ranbaxy have been fighting a long and expensive battle with MNC pharmaceutical companies to enter the generics market in the West. In this, they have received support from groups that work for bringing down the cost of drugs. However, the suit against Ranbaxy alleges that Cephalon paid US$ 136 m to Ranbaxy, Mylan, Teva and Barr to postpone marketing 'Modafinil' until 2011 or 2012, thereby blocking the availability of a cheap generic medicine. The US FDA had tentatively approved Ranbaxy's abbreviated new drug application (ANDA) for 'Modafinil' 100 mg and 200 mg tablets in August 2004. Cephalon, after initiating legal proceedings against the generic companies that had got the US FDA's nod, chose to settle the patent litigation out of court in December 2005. The stock of Ranbaxy is trading 2% higher currently after losing 4% yesterday. Its peers Dr. Reddy (REDY.BO, news) 's (up 2%) and Cipla (marginally up) are also in favour in early trades.
In the US markets, higher crude prices and the release of unenthusing reports in the Fed 'beige book' led to blue chip stocks shed gains yesterday. All the three-benchmark indices, the Dow Jones, the S&P 500, and the tech-heavy NASDAQ gained 2%. The release of the Fed's beige book survey, which showed that several U.S. regions saw slower economic growth in February dampened investor sentiments. Oil prices settled higher at US$ 62 per barrel. As regards global markets, while the Asian indices are currently trading in the positive, the European markets also closed higher yesterday.
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