Share markets in India are presently trading on a flat note. Sectoral indices are trading mixed with stocks in the power sector, capital goods sector and oil & gas sector witnessing maximum selling pressure while healthcare stocks and telecom stocks are witnessing buying interest.

The BSE Sensex is trading up by 15 points while the NSE Nifty is trading down by 5 points. The BSE Mid Cap index is trading down by 0.2% and the BSE Small Cap index is trading on a flat note.

The rupee is trading at Rs 69.98 against the US$.

In the news from the commodity space, oil prices remained stable supported by hopes that talks underway in Beijing involving US and Chinese officials could end trade disputes between the world's biggest economies, while OPEC-led supply cuts also tightened markets.

Reportedly, there is also concern that a worldwide economic slowdown will dent fuel consumption, resulting in a reduction of bullish positions the hedge fund industry holds in crude futures.

Looking at oil supplies, 2019 crude prices have been supported by supply cuts from a group of producers around the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC) as well as non-OPEC member Russia.

Crude oil prices, however, are on a decline over the last few weeks over concerns of a supply glut.

OPEC oil supply fell by 460,000 barrels per day (bpd) between November and December, to 32.7 million bpd, as top exporter Saudi Arabia made an early start to a supply-limiting accord, while Iran and Libya posted involuntary declines.

It would be interesting to see how this pans out. Meanwhile, we will keep you updated on all the developments from this space.

Moving on to the news from the pharma space, Lupin share price is in focus today as the European Commission (EC) has approved NaMuscla (mexiletine) for the symptomatic treatment of myotonia in adults with nondystrophic myotonic (NOM) disorders.

Non-dystrophic myotonic disorders are a group of rare, inherited neuromuscular disorders which cause the inability to relax muscles following voluntary contraction. NaMuscla reduces myotonia symptoms in adult patients, resulting in a significant improvement in patient quality-of-life and other functional outcomes.

The drug major has also received approval from the United States Food and Drug Administration (USFDA) for Lurasidone Hydrochloride Tablets, 20 mg, 40 mg, 60 mg, 80 mg & 120 mg to market a generic version of Sunovion Pharmaceuticals, Inc's Latuda Tablets, 20 mg, 40 mg, 60 mg, 80 mg, and 120 mg.

To know more about the company, you can read Lupin Q2FY19 result analysis and Lupin annual report on our website.

In another news, Thirumalai chemicals share price is also in focus today as the company received approval from its board for formation of a Wholly Owned Subsidiary (WOS) in the Netherlands for marketing and distribution of the company's products in Europe and other countries.

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.

And since then it has been a painful ride downwards, as can be seen from the chart below:

The Roller Coaster Ride of the BSE Healthcare Index

As we wrote in one of our editions of The 5 Minute WrapUp...

• Pre-2015, pharma companies enjoyed a fairytale ride in the US market. Low labor costs, good chemistry skills, along with efficiency, ensured Indian companies could copy innovator drugs to make generic drugs at a fast pace.
  
  The generic business had lucrative margins for all major pharma players. But the party did not last long. In the quest to supply drugs quickly, they compromised on quality at their manufacturing facilities.
  
  No wonder, the US regulatory authority (USFDA) took strict action. Sun Pharma received a warning letter for its Halol manufacturing facility in 2015. It was like a bolt out of the blue. Since then, the downward spiral began and has continued till date.

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.