Share markets in India are presently trading on a negative note. Sectoral indices are trading mixed with stocks in the capital goods sector and metal sector witnessing maximum buying interest while FMCG stocks and IT stocks are witnessing selling pressure.

The BSE Sensex is trading down by 131 points (down 0.4%), while the NSE Nifty is trading down by 39 points (down 0.4%). The BSE Mid Cap index is trading down 0.2%, while the BSE Small Cap index is trading up by 0.2%.

The rupee is trading at Rs 71.19 against the US$.

The Indian rupee on Monday recovered by 34 paise to close at 71.56 against the US dollar.

The recovery came on the back of forex market sentiments driven by the country's narrowing trade deficit in November as also smart gains in domestic equities.

Besides, the American currency's weakness against its major rivals globally helped the rupee further its gains.

According to commerce ministry data, India's trade deficit came down to US$ 16.7 billion in November 2018 from US$ 17.1 billion in October this year.

In the news from the commodity space, oil prices dropped over 1%, falling for the third straight session as reports of inventory build and forecasts of record shale output in the United States, currently, the world's biggest producer, fired up worries about oversupply.

Oil marketing companies (OMCs) such as IOC, HPCL, BPCL were trading higher on the back of the above news.

Prices remained under pressure on concerns around future oil demand amid weakening global economic growth and doubts over the impact of planned production cuts led by the Organization of the Petroleum Exporting Countries (OPEC).

The US crude and Brent have lost more than 30% from early October amid swelling global inventories.

Supply curbs agreed by OPEC and its Russia-led allies might not bring about the desired results as US output goes on increasing as Iran keeps pumping out more oil. The cuts are also coming from currently high production. Oil output from Russia has been at a record high of 11.42 million barrels per day (bpd) so far in December. Meanwhile, for the first time, oil production from seven major US shale basins is expected to climb to 8.03 million barrels per day (bpd) by the end of the year.

Speaking of crude oil, India's crude oil production was lower by 4.2% in September 2018 as compared to last year.

India's Increasing Crude Oil Demand-Supply Gap

The worrying factor is this was the lowest production this year.

Moving on to the news from the pharma space, Glenmark pharma share price is in focus today as the company's subsidiary has received the approval from the United States Food and Drug Administration (USFDA) for Fluocinolone Acetonide Oil, 0.01% (Ear Drops), a generic version of DermOtic Oil, 0.01% (Ear Drops), of Hill Dermaceuticals, Inc.

Earlier, the company's subsidiary, Glenmark Pharmaceuticals Inc., USA was granted final approval by the United States Food & Drug Administration (USFDA) for Azelaic Acid Gel, 15%, a generic version of Finacea Gel, 15%, of Leo Pharma A/S.

Speaking of pharma sector, note that the BSE Healthcare Index has been on a roller coaster ride in the past few years. The period from 2012 to 2015 saw the index go up more than three times.

We believe that 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 as well as in the overall industry.