Indian benchmarks witnessed yet another volatile day of trade as investors largely looked to keep profits as the expiry of current month's F&O contracts on Thursday took center stage. Investors remained concerned over the inflationary pressures hovering over the markets and drying foreign fund inflows too did not give comfort to the investors. The domestic bourses caught up with the weakness that was evident across the globe with European markets struggling to find a bottom as ongoing Euro-zone sovereign debt crisis and the overnight jump in international crude oil prices weighed on the sentiments. Marketmen squared off hefty positions from India's top listed real estate firm DLF which plummeted 4.04% being the top laggard on the Sensex as the company reported 19.19% fall in consolidated net profit to Rs 344.54 crore for quarter ended March 2011. While the IT stocks too got hammered after software services exporter Infosys Technologies disclosed that it has received a subpoena from a grand jury in a US district court that requires the company to provide certain documents and records related to B1 business visas. The NSE's 50-share broadly followed index, Nifty settled below the psychological 5,350 support level after taking around a percent point cut while the Bombay Stock Exchange's Sensitive Index Sensex slipped by over hundred and fifty points and ended the day just below the psychological 17,850 level. The broader markets too succumbed to the intense selling pressure exerted on the heavyweights but did not drift as much as their larger peers. The midcap index declined by 0.57% while the smallcap index dropped 0.65% points. On the BSE sectoral space, the Capital Goods counter languished at the bottom of the table with losses of 1.53% on the back of the 2.24% and 1.47% plunge in heavyweights like L&T and BHEL respectively. While the profit booking was also witnessed in the IT index which sank by 1.52% as stocks like TCS and Infosys got pounded by 2.09% and 1.76% respectively. Index heavyweights like RIL, SBI and ONGC too failed to make their presence felt as they sank in the range of 1% to 2%. On the other hand, only respite came from the Consumer Durables counter which managed to keep its head above the water and settled with gains of 1.23% as bellwethers like VIP Industries and Titan Industries zoomed by 4.39% and 1.55% respectively.
On the global front, majority of Asian equity indices settled in the negative terrain with the South Korean benchmark being the top laggard in the space after plunging around one and a quarter percent points. The European counterparts too got off to a weak start but have managed to narrow down their losses as France's CAC 40 eased 0.19%, Germany's DAX edged down 0.19% and London's FTSE 100 was marginally lower 0.06%. On the other hand, the screen trading for US index futures too indicated that the Dow could open on a flat note.
Earlier on Dalal Street, the benchmark got off to a pessimistic opening in line with the weak trends that prevailed in most Asian markets as investors in the region were largely influenced by the overnight Wall Street which continued its southward journey on the persisting concerns over European sovereign financial problems. After the negative opening the frontline indices failed to show any kind of enthusiasm and continued declining as ruthless across the board position squaring remained the flavor of the session. The benchmarks eventually snapped the day with huge cuts of around a percentage points, just below the crucial 5,350 and 17,850 support levels. On the expected lines, the markets registered large volumes compared to that on Tuesday as it was the penultimate day of May series F&O settlement. The market breadth on the BSE was negative as only 1080 shares were on the gaining side against 1649 shares on the losing side while 149 shares remained unchanged.
Finally, the BSE Sensex slipped 164.73 points or 0.91% to settle at 17,847.24 while the S&P CNX Nifty fell 45.90 points or 0.85% to settle at 5,348.95.
The BSE Sensex touched a high and a low of 17,976.36 and 17,786.13, respectively. The BSE Mid cap and Small cap index lost 0.57% and 0.65% respectively.
The top gainers on the Sensex were Jindal Steel up 1.13%, Tata Motors up 1.00%, ITC up 0.91%, NTPC up 0.33% and Maruti Suzuki up 0.12%.
On the flip side, DLF down 4.04%, Reliance Communication down 2.48%, L&T down 2.24%, TCS down 2.09% and SBI down 2.06% were the major losers on the index.
The Indian Pharmaceutical industry has been witnessing phenomenal growth in recent years, driven by rising consumption levels in the country and strong demand from export markets. The pharmaceutical industry in India is estimated to be worth about $10 billion, growing at an annual rate of 9 percent. There are around 10,000 pharmaceutical manufacturers in India, producing bulk drugs and formulations, of which some 7,000 are SMEs, contributing 35 percent of the total domestic turnover of Rs 45,000 crore.
In order to enhance the performance in the domestic and export markets, the small and medium enterprises (SMEs) in the pharma sector are looking for government support on technology upgrade in manufacturing, brand promotion and marketing. The marketing and regulatory constraints are putting pressure on SMEs growth. To overcome this, the SMEs need financial support from the government. The opportunity is mainly in contract manufacturing, for both MNCs operating in India and Indian companies, which are looking to outsource manufacturing activities for the domestic market and focus on exports to regulated markets like the US and Europe. For which the SMEs first have to upgrade their capabilities to comply with manufacturing standards like Good Manufacturing Practices (GMPs) set by the Indian government and the World Health Organization (WHO).
Upgrading facilities according to the WHO-GMP and Indian GMP standards needs liberal funding from the government and some financial incentives, but without so many restrictions. The government has implemented financial assistance programmes like the Credit Linked Capital Subsidy Scheme (CLCSS) for technology up gradation of small-scale industries to enable them to comply with GMP standards with the revised Schedule M norms under the Drugs and Cosmetics Act. Besides, the government also announced a Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) that provides a 5 percent interest subsidy for SMEs to upgrade their facilities to WHO-GMP standards.
The SMEs also face the challenge of eligibility barriers, including fixed turnover limits and ORG rankings set by institutional buyers in their bidding process for medicine procurement. Small enterprises, which mainly rely on government and institutional supplies, could perform well if these restrictions are removed. Further, the government could also provide SMEs with soft loans for brand promotion.
The MSMEs constitute over 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. The contribution of SMEs to pharmaceutical units, output, investment, and employment is considerably higher than many other sectors. In the year 2011-12, the Indian domestic pharma market is expected to grow at a compounded annual growth rate (CAGR) of nearly 16%. Export market is also expected to grow much faster than the domestic market.
The only gainers on the BSE sectoral space were Consumer Durables (CD) up 1.23% and FMCG up 0.01%.
On the flip side, Capital Goods (CG) down 1.53%, IT down 1.52%, Realty down 1.31%, TECk down 1.20% and Oil & Gas down 0.98% were the major losers in the BSE sectoral space.
The S&P CNX Nifty touched high and low of 5,389.10 and 5,328.70, respectively.
The top gainers of the Nifty were Kotak Bank up 2.49%, Sun Pharma up 1.90%, Ambuja Cement up 1.67%, Jindal Steel up 1.29% and Tata Motors up 1.18%.
On the flip side, DLF down 4.08%, BPCL down 3.04%, L&T down 2.47%, IDFC down 2.46% and SBI down 2.40% were the major losers on the index.
European markets were trading mix. France's CAC 40 lower by 0.16%, Britain's FTSE 100 down 0.10%, and Germany's DAX dropped 0.20%.
The Asian markets made a mixed closing on Wednesday, while Chinese and Japanese market traded lower tracking weakness in other global markets Hang Seng and Straits Times closed in green. In a review of the Chinese banking sector released late on Tuesday, S&P said the People's Bank of China's move to contain credit risks would undermine banks' profitability for the rest of 2011 and the financials emerged as the top drag and investors pulled out of risky assets. Commodities too declined, boosting demand for the safest assets. Japan's Nikkei share average fell to its lowest close in two months. However, Hang Seng market, after initial drubbing managed a close in green as emerging value in heavyweight banking shares lifted the benchmarks out of technically oversold levels.
On the global front, majority of Asian equity indices settled in the negative terrain with the South Korean benchmark being the top laggard in the space after plunging around one and a quarter percent points. The European counterparts too got off to a weak start but have managed to narrow down their losses as France's CAC 40 eased 0.19%, Germany's DAX edged down 0.19% and London's FTSE 100 was marginally lower 0.06%. On the other hand, the screen trading for US index futures too indicated that the Dow could open on a flat note.
Earlier on Dalal Street, the benchmark got off to a pessimistic opening in line with the weak trends that prevailed in most Asian markets as investors in the region were largely influenced by the overnight Wall Street which continued its southward journey on the persisting concerns over European sovereign financial problems. After the negative opening the frontline indices failed to show any kind of enthusiasm and continued declining as ruthless across the board position squaring remained the flavor of the session. The benchmarks eventually snapped the day with huge cuts of around a percentage points, just below the crucial 5,350 and 17,850 support levels. On the expected lines, the markets registered large volumes compared to that on Tuesday as it was the penultimate day of May series F&O settlement. The market breadth on the BSE was negative as only 1080 shares were on the gaining side against 1649 shares on the losing side while 149 shares remained unchanged.
Finally, the BSE Sensex slipped 164.73 points or 0.91% to settle at 17,847.24 while the S&P CNX Nifty fell 45.90 points or 0.85% to settle at 5,348.95.
The BSE Sensex touched a high and a low of 17,976.36 and 17,786.13, respectively. The BSE Mid cap and Small cap index lost 0.57% and 0.65% respectively.
The top gainers on the Sensex were Jindal Steel up 1.13%, Tata Motors up 1.00%, ITC up 0.91%, NTPC up 0.33% and Maruti Suzuki up 0.12%.
On the flip side, DLF down 4.04%, Reliance Communication down 2.48%, L&T down 2.24%, TCS down 2.09% and SBI down 2.06% were the major losers on the index.
The Indian Pharmaceutical industry has been witnessing phenomenal growth in recent years, driven by rising consumption levels in the country and strong demand from export markets. The pharmaceutical industry in India is estimated to be worth about $10 billion, growing at an annual rate of 9 percent. There are around 10,000 pharmaceutical manufacturers in India, producing bulk drugs and formulations, of which some 7,000 are SMEs, contributing 35 percent of the total domestic turnover of Rs 45,000 crore.
In order to enhance the performance in the domestic and export markets, the small and medium enterprises (SMEs) in the pharma sector are looking for government support on technology upgrade in manufacturing, brand promotion and marketing. The marketing and regulatory constraints are putting pressure on SMEs growth. To overcome this, the SMEs need financial support from the government. The opportunity is mainly in contract manufacturing, for both MNCs operating in India and Indian companies, which are looking to outsource manufacturing activities for the domestic market and focus on exports to regulated markets like the US and Europe. For which the SMEs first have to upgrade their capabilities to comply with manufacturing standards like Good Manufacturing Practices (GMPs) set by the Indian government and the World Health Organization (WHO).
Upgrading facilities according to the WHO-GMP and Indian GMP standards needs liberal funding from the government and some financial incentives, but without so many restrictions. The government has implemented financial assistance programmes like the Credit Linked Capital Subsidy Scheme (CLCSS) for technology up gradation of small-scale industries to enable them to comply with GMP standards with the revised Schedule M norms under the Drugs and Cosmetics Act. Besides, the government also announced a Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) that provides a 5 percent interest subsidy for SMEs to upgrade their facilities to WHO-GMP standards.
The SMEs also face the challenge of eligibility barriers, including fixed turnover limits and ORG rankings set by institutional buyers in their bidding process for medicine procurement. Small enterprises, which mainly rely on government and institutional supplies, could perform well if these restrictions are removed. Further, the government could also provide SMEs with soft loans for brand promotion.
The MSMEs constitute over 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. The contribution of SMEs to pharmaceutical units, output, investment, and employment is considerably higher than many other sectors. In the year 2011-12, the Indian domestic pharma market is expected to grow at a compounded annual growth rate (CAGR) of nearly 16%. Export market is also expected to grow much faster than the domestic market.
The only gainers on the BSE sectoral space were Consumer Durables (CD) up 1.23% and FMCG up 0.01%.
On the flip side, Capital Goods (CG) down 1.53%, IT down 1.52%, Realty down 1.31%, TECk down 1.20% and Oil & Gas down 0.98% were the major losers in the BSE sectoral space.
The S&P CNX Nifty touched high and low of 5,389.10 and 5,328.70, respectively.
The top gainers of the Nifty were Kotak Bank up 2.49%, Sun Pharma up 1.90%, Ambuja Cement up 1.67%, Jindal Steel up 1.29% and Tata Motors up 1.18%.
On the flip side, DLF down 4.08%, BPCL down 3.04%, L&T down 2.47%, IDFC down 2.46% and SBI down 2.40% were the major losers on the index.
European markets were trading mix. France's CAC 40 lower by 0.16%, Britain's FTSE 100 down 0.10%, and Germany's DAX dropped 0.20%.
The Asian markets made a mixed closing on Wednesday, while Chinese and Japanese market traded lower tracking weakness in other global markets Hang Seng and Straits Times closed in green. In a review of the Chinese banking sector released late on Tuesday, S&P said the People's Bank of China's move to contain credit risks would undermine banks' profitability for the rest of 2011 and the financials emerged as the top drag and investors pulled out of risky assets. Commodities too declined, boosting demand for the safest assets. Japan's Nikkei share average fell to its lowest close in two months. However, Hang Seng market, after initial drubbing managed a close in green as emerging value in heavyweight banking shares lifted the benchmarks out of technically oversold levels.
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