Renewed concerns in the eurozone led indices in the Indian stock market to collapse during the closing stages of the day and thus ended the day deep in the red. While BSE-Sensex lost in the region of around 310 points (down 1.9%), NSE-Nifty edged lower by around 100 points. BSE Mid Cap and BSE Small Cap indices also witnessed losses as both of them shed around 1.3% each. On the Sensex, only three stocks out of a total of 30 managed to close the day in the positive.
While most Asian indices closed in the red today, Europe too was witnessing a negative trend. The rupee was trading at Rs 50.1 to the dollar at the time of writing.
The eurozone tsunami just doesn't show any signs of coming under control. This time it was Spain which came in the firing line. As per reports, the 10-year Spanish bond yield hit a Euro era high of 6.63%, leading to concerns that the debt crisis in Europe could be spreading. However, this was still not enough to cajole Germany into printing more money and buying bonds on a greater scale. And until this 400 pound elephant in the room refrains from taking any action, the downward spiral for the biggest economic bloc in the world is likely to continue. For Indian investors, however, this could present a good opportunity to invest in good quality stocks at attractive valuations from a long term perspective.
Pharma major Lupin closed lower on the bourses today. The stock was down around 2%. The decline came despite the news that the company's Japanese subsidiary has entered into an agreement with I'rom Holdings Company, an integrated Japanese Healthcare Provider, to acquire 100% of outstanding shares of the latter's subsidiary, I'Rom Pharma Company (IP). It should be noted that IP is a specialty injectables company based in Tokyo and recorded sales of JPY 5.4 bn in FY11. This deal has come at a good time for Lupin as the market for generic injectables is all set to grow in Japan in the coming years. Lupin is one of the most improved pharma companies in India and has taken huge steps in recent years in expanding its therapy portfolio.
While engineering major BGR Energy may not be having the best of times on the bourses, it is definitely performing a lot better on the order bagging front. As per reports, the company has been awarded an EPC contract for setting up a 600 MW coal based thermal power plant by TRN Energy, New Delhi. The value of the order stands at Rs 17 bn. The project has received forest and environmental clearances and the coal linkage has also been tied up. The stock of BGR Energy closed marginally higher today.