Key indices continued to trade with small gains in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, rose 38.08 points or 0.11% at 33,869.47. The Nifty 50 index gained 13.55 points or 0.13% at 10,476.75. The movement of indices was restricted within a small range around the flat line so far.
The market swung between gains and losses near the flat line in early trade. The Sensex and Nifty, both, hit record high at the onset of the session. Stocks soon slipped into the red and traded with small losses in morning trade. Indices turned positive in mid-morning trade and traded with small gains in early afternoon trade.
The S&P BSE Mid-Cap index rose 0.46%. The S&P BSE Small-Cap index gained 1.01%. Both these indices outperformed the Sensex.
The broad market depicted strength. There were more than two gainers for every loser on BSE. 1,670 shares rose and 828 shares fell. A total of 162 shares were unchanged.
Pharma stocks gained. Sun Pharmaceutical Industries (up 0.61%), Aurobindo Pharma (up 0.23%), Cipla (up 1.05%), Lupin (up 2.12%), Wockhardt (up 2.38%), Divi's Laboratories (up 0.37%), Glenmark Pharmaceuticals (up 3.05%) and Cadila Healthcare (up 0.38%) gained. Dr Reddy's Laboratories declined 1.42%.
Capital goods stocks extended recent gains. Bharat Heavy Electricals (Bhel) (up 0.55%), Havells India (up 0.08%), ABB India (up 0.74%), Bharat Electronics (up 1.03%), and L&T (up 1.33%) gained. Thermax (down 0.37%), and Siemens (down 0.09%) declined.
Morepen Laboratories jumped 16.44% after the company received an approval from US drug regulator for its drug, Montelukast Sodium, used to treat asthma. The announcement was made during trading hours today, 20 December 2017.
The United States Food and Drug Administration (USFDA) has cleared Montelukast Sodium, a bulk drug/active pharmaceutical ingredient (API) manufactured by Morepen Laboratories for sale in the US market. This gives Morepen an entry into the Rs 2000 crore (approximately $300 million) US market for Montelukast. The first commercial orders for the bulk drug are expected in Q2 of FY 2018-2019.
Montelukast's global market is estimated at about Rs 13000 crore (approximately $2 billion) out of which US market alone is Rs 2000 crore. The patent for Montelukast has expired in all the markets worldwide. In US, the product patent got expired in 2012 and subsequently process patent expired in 2014.
Meanwhile, the Companies (Amendment) Bill, 2017 which seeks to bring about major changes in the Companies Act, 2013, was passed by the Rajya Sabha yesterday, 19 December 2017 by a voice vote. The bill, which was adopted by the Lok Sabha in July, will now have to receive the assent of the President to become law. The amendment seeks to strengthen corporate governance standards, initiate strict action against defaulting companies and help improve ease of doing business in the country.
Overseas, Asian stocks dropped after Senate passed Republican tax bill in 51-48 vote sending the tax cut package back to the House of Representatives for a final vote later in the day.
US stocks ended with modest losses yesterday, 19 December 2017, pulling back from all-time highs. Stocks remained lower as the House of Representatives, as expected, passed tax legislation that would slash corporate rates but will have to vote again today because the current draft doesn't comply with Senate rules.
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