Indian stock market had a rather volatile outing today. While the indices opened on a cautious note, buying activity propelled them into the positive. However, this foray proved short lived as profit booking began to take its toll. Thus, the afternoon session saw the indices languishing deep in the red with no respite in the final trading hour as well. While the BSE-Sensex closed lower by around 244 points (down 1.5%), the NSE-Nifty closed lower by around 72 points (down 1.4%). The BSE Mid Cap and the BSE Small Cap were not spared either as they closed lower by 1% each. Losses were largely seen in metals, auto and banking stocks.
As regards global markets, Asian indices closed mixed today while European indices have opened in the red. The rupee was trading at Rs 49.11 to the dollar at the time of writing.
Aluminium stocks closed mixed. While Hindalco closed into the red, Nalco (NYSE:NLC) found favour. As per a leading business daily, Nalco has envisaged becoming a strong player in the metal and energy sector by 2020. With this aim in mind, the company is targeting a turnover of Rs 250 bn by that time. However, to do so the company is keen to diversify and not just focus on aluminium. Nalco's diversification and expansion plans would involve an investment of Rs 400 bn. Nalco would be exploring business opportunities in other mineral sectors such as copper, gold, uranium and titanium. In this regard, the company has already signed Memorandum of Understanding (MoUs) with Hindustan Copper Limited and Indian Rare Earths Limited for different diversification projects. It must be noted that currently, Nalco is India's largest producer of alumina and one of the leading producers of aluminium.
As per a leading business daily, Glenmark has received tentative U.S. FDA approval for its generic version of IMR's drug "Zomig" used for treating migraine. The tentative approval granted by the U.S. regulator is for the 2.5 mg and 5 mg tablets and constitutes one of two tentative approvals granted for a generic version of the drug. It must be noted that Glenmark will be able to launch this drug only on receiving final approval from the U.S. FDA. Further, the company believes that there are no first filers for this drug, which means that the company can launch this drug on day 1 of patent expiry (in May 2013). According to IMS Health, "Zomig" had generated revenues to the tune of US$ 141 m for the 12 month period ending June 2011. This is a positive Glenmark and will enable the company to enhance its sales from the highly competitive U.S. generics market where continuous product launches are the order of the day. Glenmark's current portfolio consists of 73 generic products authorized for distribution in the U.S. market. The stock closed higher today.