Indices in the Indian stock markets witnessed more selling pressure during the closing stages and as a consequence, closed significantly lower for the day as well as the week. While Sensex edged lower by around 320 points (down 1.9%), fall on the Nifty came in at around 100 points. The BSE Mid Cap and Small Cap indices were equally badly hit, edging lower by around 2% each. Only about 4 stocks on the Sensex managed to keep their head above the water.
Most Asian stocks also closed lower today with Europe too trading in the red currently. The rupee was placed at Rs 53.9 to the dollar at the time of writing.
India emerged as the worst performer amongst major Asian indices today. This shows that the fall today had an India angle to it rather than being driven internationally. Perhaps the biggest reason why the indices fell had to do with the Government's announcement that it is reviewing its tax treaty with Mauritius. With a chunk of foreign investors operating out of Mauritius, the news obviously led to sell off on the indices. However, this could be a boon in disguise for long term investors as more forced selling could make fundamentally strong attacks attractive from a long term perspective.
Pharma major Dr Reddy's has received US Food and Drug Administration's approval for selling ibandronate sodium tablets used to treat osteoporosis. The tablets are believed to be the generic version of Boniva, a brand of Swiss drugmaker Roche. The osteoporosis drug aims to help increase bone mass to reduce the risks associated with weak bones and spinal fractures in women. The total size of the osteoporosis market is $18 billion in the United States. The stock of the company however closed marginally lower today.
Kansai Nerolac, one of India's largest paint companies also closed marginally lower today. This despite the positive development about its expansion plans. As per reports, the company is likely to invest Rs 3 bn this year for setting up a plant in the southern city of Bangalore. This will take the company's annual capacity to 260,000 tonnes from the existing 220,000 tonnes. The company also plans to expand its dealer network by 5% from the current 14,000 dealers. It will also add 5 new Nerolac Style Zone outlets in the current fiscal. It has 30 such stores presently.