Indian Indices Continue Momentum; Healthcare Stocks Witness Buying

After opening the day on a positive note, stock markets in India have continued their momentum and are presently trading in the green. Sectoral indices are trading on a positive note with stocks in the realty sector, healthcare sector and capital goods sector witnessing maximum buying interest.

The BSE Sensex is trading up 224 points (up 0.7%) and the NSE Nifty is trading up 61 points (up 0.6%). The BSE Mid Cap index is trading up by 1.4%, while the BSE Small Cap index is trading up by 1.8%. The rupee is trading at 64.28 to the US$.

In news from stocks in the pharma sector. Cadila Healthcare share price is among the top gainers on the bourses today.

The surge came after the company reported that the US Food and Drug Administration (USFDA) successfully completed the audit and inspection of it facility in Moraiya, Ahmedabad, without any adverse observations.

Cadila’s Moraiya facility was audited by USFDA as a surprise inspection which was triggered due to the product recalls last year. Moraiya is key facility for Cadila as significant number ANDAs are filled from this facility. This facility had been under import alert prior to its clearance by the USFDA last year.

At the time of writing, Cadila Healthcare share price was trading up by 3%.

The Indian pharmaceutical industry has come under a lot of regulatory pressure in the past few years.

The sector has faced great volatility over the years.

We had written about the current predicament of Indian pharma companies in one of the premium editions of the 5 Minute WrapUp:

Over the past few years, risk in the US markets has increased. The US Food and Drug Administration has become stricter on products entering US borders. Surprise inspections have increased and companies are being issued warning letters. This has impacted the business and earnings of Indian pharma players, causing major volatility for the sector.