Indian Markets Tuesday Wrap-Up: In Line with Asian Peers

The final hour saw the Indian markets strengthen further on account of strong buying activity. The BSE-Sensex ended the day higher by around 450 points, while the NSE-Nifty closed higher by about 140 points. The BSE-Midcap and BSE-Smallcap indices also ended the day on a firm note, ending higher by about 4.3% and 4.5% respectively. Today, buying activity was witnessed in stocks across the board with stocks from the realty, metal and power sectors leading the pack of gainers. At the time of writing, the overall advance to decline ratio stood at 3.1 to 1 on the BSE.

Most of the other Asian markets ended the day on a firm note today. The European indices are currently trading in the green as well. Rupee was trading at 48.9 against the US dollar at the time of writing.

As per a leading business daily, Cadila Healthcare plans to set up a new unit for its transdermal patch 'NuPatch' on account of rising demand from overseas markets especially the US. The company plans to set up the new unit in a special economic zone near Ahmedabad with an investment of around Rs 1 bn. The new unit will manufacture transdermal patches and various injectables. It may be noted that the company had launched 'NuPatch', India's first indigenously manufactured patch for pain relief in 2005. The overseas market for transdermal patches is estimated to be around US$ 5 bn, while the size of the Indian market has been pegged over US$ 20 m. This move will enable Cadila Healthcare to further enhance its revenues from branded generics especially in the US market which is highly competitive.

As per a leading business daily, the IDBI led consortium is expected to raise around US$ 2.6 bn for Reliance Power's Krishnapatanam Ultra Mega Power Projects (UMPP). The funds would be raised along with 13 other banks. It is believed that the bank will also approach market leaders, SBI and ICICI Bank. The deal is expected to be completed in a period of six to seven months. However, the interest rates that the banks will charge have not been divulged. It must be noted that Reliance Power is in the process of executing two UMPPs in Sasan (Madhya Pradesh) and Krishnapatnam (Andhra Pradesh) and has won the bid for building its third UMPP at Tilaiya in the eastern state of Jharkhand.

As per a leading business daily, the World Trade Organisation is of the opinion that the global economy is far from a significant recovery. The WTO believes that while a recovery yet is still far off, not many countries have done away with their respective protectionist barriers. Falling corporate profits and rising unemployment levels have led to some countries imposing trade barriers to protect their countries, little realising that this could have an impact on global trade going forward. In fact, one of the directors of the organisation has remarked that import penalties and other border restrictions are closing off markets and causing more difficulty in a time of depressed demand. Giving its view on the global economy, the director added that while financial markets are showing positive signs, the crisis is far from over.