Sensex continues strong, but pharma stocks limit gains; Nifty holds above 8,400

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Published: January 12, 2017 2:13:28 PM

Pharmaceutical shares’ extended losses continued to limit the gains in Indian markets, even as IT stocks tried to pull up the benchmark indices, as the US President-elect Donald Trump did not give any hint of more stringent rules for granting visa to Indians.

In the afternoon trade, BSE Sensex rose 114.19 points to 27,254.6, while NSE Nifty was up 28.9 points at 8,409.55, crossing the 8,400-mark for the first time since November 11.In the afternoon trade, BSE Sensex rose 114.19 points to 27,254.6, while NSE Nifty was up 28.9 points at 8,409.55, crossing the 8,400-mark for the first time since November 11.

Pharmaceutical shares’ extended losses continued to limit the gains in Indian markets, even as IT stocks tried to pull up the benchmark indices, as the US President-elect Donald Trump did not give any hint of more stringent rules for granting visa to Indians.

In the afternoon trade, BSE Sensex rose 114.19 points to 27,254.6, while NSE Nifty was up 28.9 points at 8,409.55, crossing the 8,400-mark for the first time since November 11.
The US President-elect Donald Trump targeted drug makers and warned them to move their business operations back to the homeland.

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BSE Healthcare Index fell almost 1% to 14,974.35 points despite Biocon CMD Kiran Mazumdar Shaw and Wockhardt Chairman Dr Habil Khorakiwala’s assurances of no significant impact on Indian generic drugmakers. Dr Reddy’s was down 1.69%; Sun Pharma was down 1.19%; Lupin was down 1.71%; Torrent Pharma was down 2.12%; Aurobindo Pharma was down 1.72%; Wockhardt was down 1.96%.
Trump said at a press conference last night (India time) 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.
Biocon’s shares were trading strong on the bourses, up about 2%, 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.

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Energy and utilities continued to remain firm, with NTPC up 4.77%, Power Grid up 4.27% and Tata Power up 2.8% on NSE, and ONGC up 1.82% on BSE.
Capital goods and IT stocks were also up. Infosys extended early morning gains and was up 2.28% from the previous close, ahead of third quarter results announcement by the industry leader Tata Consultancy Services.
FMCG and some metal stocks were marginally down, and Coal India pared previous day’s gains to fall 1.58%, weighing on the indices.

The government is due to release monthly industrial manufacturing output number and consumer price inflation data later today.

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