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Reports India

Indian stock market and companies daily report (June 30, 2014, Monday)

June 30, 2014, Monday, 04:08 GMT | 23:08 EST | 07:38 IST | 10:08 SGT
Contributed by Angel Broking


Indian markets are expected to open on a flat note tracking flat opening in SGX Nifty and mixed opening in the Asian markets.

US markets posted modest gains on Friday, as stocks benefited from a late rally. The choppy trading for most of the session was due to the uncertainty about the near-term outlook for the markets however, the sentiment reversed by the afternoon mainly because of the fear of missing out on further upside. Thomson Reuters and the University of Michigan released a report showing improvement in consumer sentiment in the month of June to 82.5 from the preliminary reading of 81.2 against 81.9 in May. In the meanwhile, European stocks faded in the final hours of trading Friday; mainly because of dampened sentiments among investors as a European Commission survey found there was a decline in confidence in the region among businesses and households in June.

On domestic front, the market rose marginally as Brent crude prices steadied near US$113/barrel and the Indian Meteorological Department stated expectation in improvement in the monsoon in July.


Markets Today

The trend deciding level for the day is 25,131 / 7,510 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 25,241 - 25,419 / 7,538 - 7,566 levels. However, if NIFTY trades below 25,131 / 7,510 levels for the first half-an-hour of trade then it may correct 24,953 - 24,843 / 7,481 - 7,454 levels.


Ranbaxy to launch generic Diovan in US

Ranbaxy Labs, is expected to finally launch in the US market, the first generic version of Swiss drug maker NovartisRs. Diovan (Valsartan), for which it enjoys a 180-days exclusive marketing opportunity. This launch, pending since September 2012 would happen immediately without any delay as it has managed an approval from the US Food and Drug Administration (USFDA). Novartis, which earns about US$3.4bn from this drug globally. The Swiss firm reckons that every month without a generic in US for Diovan helps it earn roughly US$1 00mn. The company may clock close to US$200mn during its 6-month exclusivity period if it launches the drug at a 40-50% discount to innovator's branded version and manages to corner half of the market share in the US. On the net profit, it can garner around US$30mn, during the period. Since, its main API plant at Toansa in Punjab was barred from shipping to the US, now sourcing its API from an external party would mean Ranbaxy may have to share a part of the sales. This one of the key opportunities for the company, however, the main upsides for the stock would from heron (around 8%) would accrue after the merger with Sun Pharmaceuticals (currently under the legal hurdles), pending which we remain neutral, as of now.


Economic and Political News

- Indian analytics market to more than double to US$2.3bn by FY18

- SIDBI to mop up Rs.18,000cr during 2014-15

- India, China set to sign MoU for Chinese industrial parks

- P-Notes investment hits US$35bn in May at 6-yr high

- Differential gold import levies may cost India $3 billion: PwC

- Foreign Institutional Investors pour in Rs.32,000cr in June


Corporate News

- REC, PFC to give Rs.7,800cr loan to AP power projects

- ONGC to invest Rs.5,700cr in Mumbai High North development

- Aban Offshore likely to launch up to US$1 50mn share sale on Friday

- GAIL extends Rs.3.89cr relief compensation for explosion victims

- NTPC to commence production at two Chhattisgarh coal mines in 2016