Biocon's Bold Move

Aaj Ka Bazaar

US markets ended flat in yesterday's trading session as investors were wary of taking aggressive bets ahead of the crucial CPI data due later this week. The changing expecations of a delayed rate cut was visible on the US bond yields which rose to the highest level in 2024. Additionally, worries over a wider war in the Middle East kept crude oil prices elevated, with Brent crude trading above the USD 90 per barrel mark. Asian markets, however, defied the cautious mood in the US and other asset classes and were trading in positive territory this morning. Taking cues from the upbeat mood in Asia, Indian markets are likely to open higher and above the 22,700 mark on the Nifty today. With volumes likely to be muted on account of Gudi Padwa today, markets will turn focus on the crucial consumer price inflation data due on Friday for further hints on rate cut expectations in India. Additionally, stock specific action would take centre stage with the commencement of earnings season, with TCS being the first major to report fourth-quarter earnings on Friday.

Markets Around Us?

BSE Sensex - 75,124.28 (0.51%)

Nifty 50 - 22,721.60 (0.24%)

Bank Nifty - 48,667.05 (0.18%)

Dow Jones - 38,908.43 (0.01%)

Nasdaq - 16,253.03 (0.03%)

FTSE - 7,943.47?(0.41%)

Nikkei 225 - 39,585.86 (0.61%)

Hang Seng - 16,836.40 (0.62%)

Sector: Pharmaceuticals

Gland Pharma gets US FDA nod for breast cancer drug

Gland Pharma, a company known for making medicines, just got the green light from the US Food and Drug Administration to sell a new drug that helps treat breast cancer. This drug, called Eribulin Mesylate Injection, is a big deal because it's the first of its kind to be sold as a generic, which usually means it's more affordable. They're planning to start selling it soon with the help of a partner company. The drug is already doing well, with sales hitting around US$ 92 million in the US over the last year. Gland Pharma is working with another company, Orbicular Pharmaceutical Technologies, to create more complex medicines like this one.?

Why it Matters:

The immediate increase in Gland Pharma's share price following the announcement reflects investor confidence in the company's growth trajectory and its ability to bring new products to market successfully. This uptick in share price can be seen as a direct vote of confidence from the market, acknowledging the potential for long-term value creation.

NIFTY 50 GAINERS

ADANIPORTS - 1,026.40?(1.30%)

SHRIRAMFIN - 2,602.05?(1.28%)

INFY - 1,491.55?(1.01%)

NIFTY 50 LOSERS

TATACONSUM - 1,135.75?(-0.14%)

HINDUNILVR - 2,266.00?(-0.13%)

DIVISLAB - 3,792.25?(-0.10%)

Sector: Pharmaceuticals

Biocon to push for weight-loss drugs in UK

Biocon Ltd, a major pharmaceutical company in India, is taking the lead in the weight loss drug market as patents for popular drugs like Saxenda are ending. They've got the UK's go-ahead to make a generic version of liraglutide, a weight loss injection, marking a big step since it's the first of its kind. This move comes as Saxenda's patent protection runs out in November, opening doors for cheaper alternatives. Biocon's management mentioned they're working on 15 more similar drugs, with plans to ask for approval for one or two this year. Although they haven't sought approval in India yet, they're aiming for a piece of the global anti-obesity market, which might reach US$ 100 billion by 2030. Other Indian companies and international giants like Novo Nordisk and Eli Lilly are also eyeing this lucrative market, with new products and clinical trials underway.

Why it Matters:

The development of 15 additional peptide formulations, with one or two drugs expected to seek regulatory approval within the year, showcases Biocon's robust R&D capabilities and commitment to expanding its presence in the anti-obesity and broader therapeutic markets. This strategic focus on innovation and pipeline development enhances Biocon's long-term growth prospects and resilience against market volatility.

Around the World

Asian stock markets mostly saw improvements on Tuesday, bouncing back a bit from last week's big losses. However, everyone's waiting on new data about U.S. inflation and what it might mean for future interest rate changes, which kept the excitement in check. U.S. stock futures didn't show much movement, reflecting a cautious mood among investors. Taiwan's market was the standout performer, thanks mainly to a big boost for chipmaker TSMC after it received a substantial subsidy from the U.S. government. Meanwhile, stocks in China didn't do as well, but Hong Kong saw some gains after promises of support to help its market. Japanese stocks also recovered some ground, though they're still not back to their recent highs, partly because of fluctuations in the value of the yen. Other places like Australia and South Korea saw mixed results, with all eyes on upcoming economic reports and interest rate decisions.

Option Traders Corner

Max Pain

Nifty 50 - 22,600

Bank Nifty - 51,100

Nifty 50 - 22,637 (Pivot)

Support - 22,578, 22,491, 22,431

Resistance - 22,725, 22,784, 22,872

Bank Nifty - 48,574 (Pivot)

Support - 48,431, 48,282, 48,139

Resistance - 48,724, 48,866, 49,016

Did you know?

CEO salary goes up

The average compensation of a chief executive officer in 2024 stood at Rs 13.8 crore, up 40% from pre-covid levels, according to the Deloitte India Executive Performance and Rewards Survey.

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