Benchmark Indian indices opened marginally higher with most Pharmaceutical stocks taking a major beating after the US President-elect Donald Trump target drug makers and warned them to move their business operations...
Benchmark Indian indices have held onto early morning gains, with most pharmaceutical and healthcare stocks still in the red, after the US President-elect Donald Trump targeted drug makers and warned them to move their business operations back to the homeland.
NSE Nifty, which crossed the 8,400-mark for the first time since November 11, was trading 0.25% 8401.75 points, while the BSE Sensex was up 0.37% at 27242 points.
US President-elect Donald Trump last night (India time) said in a press conference that the Pharma companies are “getting away with murder”. He added that there was a need for more competitive pricing and that US will start bidding to save billions of dollars over time.
However, Biocon’s Chairman and Managing Director Kiran Mazumdar Shaw said in an interview to CNBC TV18 that their will not be much impact upon generic drug suppliers based in India. “I don’t think these are going to be big issues; if Indian pharma companies are supplying these products to the US markets and if there are no US suppliers, which is mostly the case, this doesn’t affect the Indian pharma companies,” she said in the interview.
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Biocon’s shares were trading strong on the bourses following the US Food and Drug Regulator accepting its application for a proposed cancer drug. Its shares rose to an intraday high of Rs 1,052, up nearly 5% from the previous close.
Other stocks weighing on the indices were some from the FMCG sector, with Kohinoor Foods down 1.89% and Tata Global Beverages down 1.85%. Adani Ports was down 1.4%, and Coal India pared previous day’s gains to fall 1.41%.
Among the gainers, energy and utilities were trading impressively, with Power Grid Corp up 4.61%; NTPC up 3.28%; Tata Power up 2.21%; ONGC up 1.47%.
Capital goods and IT stocks were also up. Infosys maintained early morning gains and was 2.14% up from the previous close, ahead of third quarter results announcement by the industry leader Tata Consultancy Services. TCS is likely to report that Oct-Dec net fell a little, mainly due to adverse currency movements.
The government is due to release monthly industrial manufacturing output number and consumer price inflation data later today.