Stock markets in India fell in the afternoon trading session following losses in global markets and a weaker rupee. Losses are largely seen in consumer durables stocks and realty stocks.
The BSE Sensex is trading down by 195 points and the NSE Nifty is trading down by 73 points. Meanwhile, the BSE Mid Cap index is trading down by 1.5% while, the BSE Small Cap index is trading down by 1.3%.
Pharma stocks are trading on a mixed note with Biocon & Alembic Pharma being among the top gainers. As per an article in a leading financial daily, Zydus Cadila has received final approval from the US Food and Drug Administration (USFDA) to market Acyclovir Sodium Injection.
Reportedly, the drug will be marketed in the strengths of 500 mg (base)/10 mL (50 mg (base)/ml) and 1,000 mg (base)/20mL (50 mg (base)/mL) single-dose vials (US RLD-Zovirax for injection).
It will be manufactured at the group's formulations manufacturing facility at Moraiya in Ahmedabad.
Acyclovir is an antiviral drug. It slows the growth and spread of the herpes virus in the body. Acyclovir injection is used to treat severe infections caused by herpes viruses.
Note that, the group now has 216 approvals and has so far filed over 330 ANDAs since the commencement of the filing process in FY 2003-04.
At the time of writing, Cadila Healthcare share price was trading down by 0.4%.To know more about the company, you can access to Cadila Healthcare's Q1FY19 result analysis and Cadila Healthcare's 2017-18 Annual Report Analysis on our website.
To know what's moving the Indian stock markets today, check out the most recent share market updates here.
Moving on to the news from the steel sector. As per an article, The Economic Times, JSW Steel and its promoters have acquired around 88% stake in the Monnet Ispat and Energy Ltd following completion of the insolvency resolution proceedings.
The National Company Law Tribunal (NCLT) had earlier approved an Rs 28.8-billion bid by a consortium of Aion Investments and JSW Steel to acquire the bankrupt Monnet Ispat & Energy, which owes over Rs 110 billion to a clutch of lenders.
The Aion-JSW consortium was the sole bidder for the 1.5-million-tonne asset in Chhattisgarh.
Monnet Ispat had recently said the insolvency resolution plan approved by NCLT was completed under which JSW Steel provided a working capital advance of Rs 1.3 billion. It had also said Rs 24.6 billion has been paid to the secured financial creditors.
Monnet Ispat, one of the country's foremost steelmakers, ran a successful coal-based sponge iron plant with an annual capacity of 1.5 million tonnes in Chhattisgarh.
The company ran into problems when coal mines attached to the plant were canceled in 2014 after the Supreme Court order. Crashing steel prices on account of Chinese dumping further aggravated its crisis and resulted in bankruptcy proceedings.
Monnet was one of the 12 accounts that the Reserve Bank had identified in its first list tagged as the 'dirty dozen' for an immediate resolution mid-last year.
Meanwhile, it should be noted that when it comes to resolving insolvency, India's rank is still low at 103, much below our neighboring countries.
India Lags in Resolving Insolvencies
On both factors (i.e. recovery rate and the time to resolve a bankruptcy), India is slower than even its poorer neighbors.
However, going forward, the IBC framework will change India's position as it is a time-bound process.
Cases once admitted are to be resolved within 270 days; if not, companies go into liquidation.
We already had a taste of success with the successful conclusion of the Bhushan steel case.
Enthused by this success, the finance ministry expects banks to write back more than Rs 1 trillion after the resolution of all 12 big NPA cases that have been referred for insolvency proceedings by the RBI.
We believe this can be a big boon for the banking sector and the Indian economy. This will not only help banks recover bad loans to an extent but also help bring back credit growth.
Steel stocks are trading on a mixed note with Bhushan Steel & Jindal Saw leading the losses.
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