Indian Markets: Positive Momentum Throughout the Day

The intensified buying activity among index heavyweights in the final hours of trade caused markets to gain further ground to close well into the positive territory. Barring select auto, FMCG, energy, engineering and telecom stocks, buying was seen across the board. As regards the global markets, while the Asian indices closed mixed, the European indices are trading in the positive currently.

The BSE Sensex closed almost 580 points higher and the NSE Nifty closed higher by 170 points. The BSE Midcap and Smallcap indices closed in the green, higher by 3.6% and 2.3% respectively. The rupee was trading at 47.37 to the dollar.

Following global peers, the Indian benchmark indices opened in the positive and maintained this momentum throughout today's trading session. Every successive trading hour saw the indices scale higher and the buoyancy spilled over to the final trading hour as well resulting in the markets closing comfortably above breakeven. The overall market breadth was positive with gainers outnumbering losers by a ratio of 3.3 on the NSE. While Sterlite Industries (up 14%) and Tata Steel (up 13%) led the pack of gainers on the BSE Sensex today, ITC (down 1%) and Maruti Suzuki and HDFC Bank (each marginally down) emerged as the top losers.

Glenmark Pharmaceuticals’ US subsidiary Glenmark Generics has initiated distribution of Morphine Sulfate Oral Concentrate Solution in the US market through a licensing agreement with a US based pharmaceutical development company. The fifth product offered by Glenmark is indicated for the relief of moderate to severe pain. As per IMS data, the total sales of the drug for the 12-month period ending June 2008 were in excess of US$ 15 m.

The product launch complements Glenmark's presently established portfolio of 36 products in the US market. The increased presence in niche areas would enable the company to bolster revenues from this highly competitive generics market going forward. The stock (up 10%), along with its peers Ranbaxy (up 7%) and Dr. Reddy’s up (2%), closed in the positive.

As per a leading business daily, Axis Bank has raised Rs 15 bn through private placement of debentures to augment its Tier-II capital. The move to increase capital is aimed at sustaining its credit growth in the future. The bank had recorded yet another period of strong growth in advances in 1HFY09, with the same growing by 54% YoY. Out of this, retail advances grew by 55% YoY and formed 24% of the bank’s total advances at the end of the second quarter (24% in 2QFY08). The stock of Axis Bank closed higher by 4%. Its peers SBI (up 4%) and ICICI Bank (up 9%) also ended higher.