Indian share markets continued to trade near the dotted line during closing hours and ended the day marginally higher. Gains were largely seen in the realty sector and energy sector.

At the closing bell, the BSE Sensex stood higher by 86 points (up 0.2%) and the NSE Nifty closed higher by 18 points (up 0.2%). The BSE Mid Cap index closed down by o.2%, while the BSE Small Cap index ended the day down by 0.6%.

Asian stock markets finished on a mixed note as of the most recent closing prices. The Hang Seng stood up by 0.4% and the Nikkei was trading down by 0.1%. The Shanghai Composite stood higher by 0.4%.

European markets were also trading on a mixed note. The FTSE 100 was down by 0.1%. The DAX was up by 0.6% while the CAC 40 was up by 0.7%.

The rupee was trading at 71.22 to the US$ at the time of writing.

Speaking of Indian share markets, there has been a steady rise in direct participation by Indians in stock markets as can be seen in the chart below.

Direct Participation in Stock Markets is Growing Steadily

This increased participation has resulted in not just money flowing into mutual funds, but also in the opening of demat accounts.

In fact, the attractiveness of Indian equities and the fact that investing in demat accounts is now very easy has led to a steady rise in accounts.

What more, this trend is all set to continue, as the Indian stock markets scale new highs in the coming years.

In the news from the cement sector, UltraTech Cement share price was in focus today as the company reported a 13.6% year-on-year (YoY) drop in consolidated profit at Rs 3.9 billion for December quarter.

Net sales during the quarter rose 19% YoY to Rs 92.6 billion from Rs 77.8 billion last year.

Domestic sales volume for the company grew 15% YoY.

The company in a regulatory filing said that its numbers during the quarter were hurt on the back of 11% rise in costs which came in largely due to higher fuel expenses and a depreciation in the rupee.

Interest cost also jumped on account of higher loans raised for the acquisition of UNCL.

The company said that one of its plants in central region underwent a major overhaul in December quarter and has achieved cost improvements.

Regarding its future guidance, the company said demand is witnessing an upward movement with higher spends on infrastructure and government sponsored housing program.

It added that with the additional capacities acquired through the organic and inorganic route and its rapid ramp-up, UltraTech is very well placed to participate in the growth of the economy.

Apart from UltraTech Cement, market participants were also tracking Yes Bank share price, Mphasis share price, Pfizer share price, and PVR share price as these companies were set to announce their December ended quarter results today.

You can also read our analysis of some recently released Q3FY19 results: Infosys, TCS, Trident, HDFC bank, NIIT Technologies, Asian Paints, TVS Motor, Havells.

Moving on to the news from the pharma sector, Glenmark Pharmaceuticals share price was in focus today as the company has received a tentative nod from the US health regulator for Topiramate extended release capsules. The capsules are used to treat certain types of seizures.

The approved product is a generic version of Upsher-Smith Laboratories, LLC's QUDEXY XR extended release capsules.

Glenmark's current portfolio consists of 148 products authorised for distribution in the US market and 54 abbreviated new drug applications (ANDAs) pending approval with the USFDA.

Speaking of drug approvals, note that Indian pharma companies catering to the US markets are breathing a sigh of relief. After being adversely affected by import bans and the suspension of new drug approvals from manufacturing facilities in the past three years, there has been a sharp pick-up in new drug approvals.

Faster approvals expedite the commercialisation of product pipelines of domestic pharma companies spurring growth. At the same time, however, it has raised the intensity of competition resulting in pricing pressures.

The price erosion has been further compounded by a consolidation among US distributors and the decline in the number of products going off-patent over the past few years.

In other words, acceleration in generic drug approvals is like a double-edged sword. The growth boost can be quickly offset by the ensuing pricing pressures.

Pharma companies that invest in creating a pipeline of complex generics or building competencies in alternative dosage forms are better equipped to tackle the changing dynamics in the US generics market.