From the Trading desk
Asian shares rose on Thursday on encouraging US economic data, but share
prices could falter ahead of a European summit where Germany, France and
Italy deeply divided on how to tackle the protracted euro zone debt crisis
and stop it spreading further. Wall Street stocks logged their largest gain in
week on Wednesday and oil prices rose after data showed demand for long-lasting U.S. manufactured goods rebounded more than expected in May'12.
Advances / Declines
Crude oil futures extended gains from Wednesday on tighter North Sea
supplies and EU ban on import of Iranian crude from July'12. In lieu of the
above events Indian market could remain edgy and could turn positive if any
liquidity infusing measures are undertaken at the summit but the rising crudeprices give some negative vibes to the range bound market.
Top 5 BSE 200 - GAINERS
Ranbaxy may lose Nexium 180days exclusivity on Novartis petition
(-Ve for Ranbaxy)
Sandoz, the generic pharmaceuticals division of Novartis has filed a citizen
petition requesting the USFDA to revoke the 180days exclusivity granted to
Ranbaxy for generic Nexium. Sandoz has filled the petition on the basis
arguing that Ranbaxy received tentative approval from on Feb5, 2008 which
was a day after the end of the statutory 30month counted from the day offiling the generic plea. We believe it's a negative news for Ranbaxy(-Ve for
Top 5 Nifty - GAINERS
Amara Raja close to tying up OE deals for 2-wheeler batteries. (+Ve
Amara Raja Batteries Ltd is in advanced stage of negotiations with a few 2-
wheeler manufacturers for supplies of batteries. When this happens it will be
a first for the company. The company is confident of starting supplies to 2-
wheeler manufacturers by July-August.
Top 5 BSE 200 - LOSERS
Strides Arcolab has redeemed its entire outstanding $ 80mn FCCBs on the
Bosch to shut plants at Jaipur, Bangalore temporarily.
Slump-hit Tata Motors shuts plant for 3 days.
Top 5 Nifty - LOSERS
Tata Sons hikes stake in IHCL by 4.78% for Rs 497.47 cr
JSW targets 20-22% growth in crude steel output in 2012-13
Videocon industries to finalise a deal to sell 40% in its consumer electronic
goods retail chain, Next, by Diwali.
Panna-Mukta and Tapti field output hit 500 mn barrels mark
MARG Karaikal Port Attracts Equity Investment of Rs. 130 Crores.
In step towards decontrol, levy sugar system may be scrapped
FY13 current account deficit gap seen at 3.5% on account of softening of
Refiners' crude oil import increased 5.8% Y-o-Y in the month of May to 14.586
Revise diesel price by no more than Rs.1 at a time, says panel
FINQUEST research also available on BLOOMBERG FSPL <GO> and REUTERS.
ADR Price Movement
Volume Pr. Day
US markets end higher boosted by better than expected data
The US markets ended higher amidst thin trade boosted by better than
expected data. But investors remained cautious ahead of the two-day EU
Dow Jones Industrial Average added 0.74% or 92.34 points at
12627.01. Nasdaq Composite rose 0.74% or 21.26 points at
2875.32. Standard & Poor's 500 gained 0.9% or 11.86 points at
Encouraging news on economic front, durable goods orders jumped 1.1%
in May following a revised 0.2% decrease in April. This was much higher
than analyst expectations. Pending home sales climbed 5.9% to 101.1,
hitting a two-year high in May. Weekly mortgage applications dropped
7.1% last week. In key data from US, initial jobless claims are seen
coming in slightly lower at 385000 compared to 387000 last week. Watch
out for the final reading of the first quarter GDP data. The forecast is for
a 1.9% reading. In the currency space, the euro remained sluggish ahead
of the impending summit of European leaders. The dollar index touched
a two-week high at 82.69 but eventually stabilised to 82.40 mark in Asia
trade. In the commodity space, Brent crude rose to USD 93 a barrel on
Net Inflow (Rs. cr.)
as tighter North Sea supplies and strong US economic data offset concerns
that a European summit would do little to solve the region's debt crisis.
In the precious metal space, gold futures gained after trading flat for
Close Pr. Close
most of the day as investors held their bets in anticipation of news from
the impending European Union summit.
Asia trading mixed; Hang Seng up, Shanghai Composite down
Asian markets were trading mixed. China's Shanghai Composite was down
0.14% or 3.06 points at 2,213.87. Hong Kong's Hang Seng rose 0.21%
or 41.09 points at 19,218.04. Japan's Nikkei gained 0.93% or 81.23
points at 8,811.72. Singapore's Straits Times was flat at 2,843.27. South
Korea's Seoul Composite was down 0.27% or 4.82 points at 1,812.83.
Taiwan's Taiwan Weighted was up 0.18% or 12.60 points at 7,195.61.
FII & DII Activity
June 28, 2012
Investment policy for urea gets nod
The ministry of chemicals and fertilizers has approved the new investment policy for urea and sent it for
inter-ministerial consultations. The policy will be ready for Cabinet consideration in the next few weeks.
Under the proposed policy, imported liquified natural gas(LNG) used for urea production would be given pass
through status so that fertilizer producers get enough subsidy to use the expensive fuel and still make a 12%
return on investment. The new urea investment policy also talks about providing incentives on natural gas
price to fertilizer companies for reviving, expanding and setting up of new plants to boost domestic production.
It is good that some positive is happening in the ministry but it is to be seen how the government plans to
implement the same. The government is trying to generate enough investments for new plants, but it needs
to be seen what is happening to the existing plants, managing director of Iffco said.
Novartis battles Ranbaxy over generic Nexium
Sandoz, the generic pharmaceuticals division of Novartis AG as filed a citizen petition requesting the USFDA
to revoke the sales exclusivity given to Ranbaxy for a copy of AstraZeneca Nexium, a blockbuster treatment
for heartburn. Ranbaxy was the first company to file a generic application for Nexium, making it eligible to
get 180 days of sales exclusivity under U.S. federal law. It received tentative approval from the U.S. Food
and Drug Administration for generic Nexium on Feb. 5, 2008, which Sandoz said was a day after the end of
the statutory 30-month period counted from the day of filing the generic plea. Sandoz in the citizen petition
dated June 19, said Ranbaxy should forfeit its sales exclusivity as it failed to obtain the approval within the
stipulated time frame. Ranbaxy had received the FDA's approval for 20 milligram and 40 mg base strengths
of esomeprazole magnesium, the generic version of Nexium. Sandoz's move could jeopardize Ranbaxy's
chances of starting exclusive sales of its copy of Nexium from May 27, 2014 on patent expiry in the US, thus
hurting its chances of making significant profits in the six months before other generic competitors like
Sandoz enter the market and push down prices. Nexium is one of the world's top-selling drugs and has
generated billions of dollars in revenue for AstraZeneca. Several generic drug makers have launched cheap
copies of it in some European countries, but in the US, cheap copies of the pill aren't expected until 2014,
following settlement deals struck between AstraZeneca and generic drug companies. It isn't known when the
FDA will rule on the petition.
Thought for the Day
Lying to ourselves is more deeply ingrained than lying to others.
Source: Bloomberg, Economic Times, Business-Standard, Financial Express & Business Line
June 28, 2012
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June 28, 2012
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