Stock markets in India are trading lower presently. Among the sectoral indices, metal stocks and energy stocks are witnessing maximum selling pressure.
The BSE Sensex is trading lower by 146 points (down 0.4%), and the NSE Nifty is trading lower by 17 points (down 0.2%). Meanwhile, the BSE Mid Cap index and the BSE Small Cap index are trading up by 0.9% & 1% respectively. The rupee is trading at 73.60 to the US$.
While there is a legitimate fear about the bleak macro environment along with the liquidity in the NBFC space, we, at Equitymaster believe this fear is being extended too far... to some very strong business.
The chart below shows the recent mood of the market. Headline indices have corrected significantly from their peaks in 2018.
Are These Deep Corrections a Buying Signal?
These corrections are a clear sign of fear across sectors and individual stocks.
So, what should you do in such times? How is all of this going to impact you and your portfolio? In our latest edition of the stock market podcast, Richa Agarwal, the editor of small-cap service Hidden Treasure, talked about buying small cap stocks in this massive correction.
In the news from pharma sector. As per an article in a leading financial daily, Glenmark Pharmaceuticals Inc., USA (Glenmark) has been granted final approval by the United States Food & Drug Administration (USFDA) for Fluocinolone Acetonide Topical Oil, 0.01% (Scalp Oil).
It is a generic version of Derma-Smoothe/FS Topical Oil, 0.01% (Scalp Oil), of Hill Dermaceuticals, Inc.
According to IQVIA sales data for the 12-month period ending September 2018, the DermaSmoothe/FS Topical Oil, 0.01% (Scalp Oil) market achieved annual sales of around US$14 million.
Glenmark's current portfolio consists of 141 products authorized for distribution in the US marketplace and 58 ANDA's pending approval with the USFDA.
In addition to these internal filings, Glenmark continues to identify and explore external development partnerships to supplement and accelerate the growth of its existing pipeline and portfolio.
Glenmark Pharma share price was trading down by 0.3% at the time of writing.
To know more about the company, you can access to Glenmark Pharma's latest result analysis and Glenmark Pharma's Stock Analysis on our website.
Moving on to another news, in a bid to support domestic players, the government is mulling a proposal to increase import duties on aluminium scrap and primary aluminium.
The industry has demanded for the same amid a high growth in inwards shipments of these items. Presently, the basic customs duty on primary aluminium is 7.5% while the same on aluminium scrap is 2.5%.
The Aluminium Association of India (AAI) has also urged the government to increase the duty on imports of aluminium scrap as the domestic sector may become a victim of escalating trade war between the US and China.
It said that an estimated 30% of China's aluminium scrap imports come from the US. It noted that aluminium is required by industries like automobile, construction, consumer goods, etc. and all these industries are growing in India and the country is producing sufficient amount of required metal domestically.
Total production of aluminium in India is about 4 million tonnes and consumption is around 3.6 million tonnes. The demand comes in the wake of the US imposing 10% duty on certain aluminium products. China, too, has raised the duties.
As per estimates, during Q1 (April-June) of 2018-19, imports of aluminium scrap increased to 36,000 tonnes from 16,000 tonnes.
To know what's moving the Indian stock markets today, check out the most recent share market updates here.
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