Share markets in India continued their upward climb in afternoon trade. At the closing bell, the BSE Sensex closed higher by 244 points. While, the NSE Nifty finished higher by 72 points. Meanwhile, the S&P BSE Midcap Index and the S&P BSE Small Cap Index both ended up by 1%.

All sectoral indices finished the day in green with metal sector and healthcare sector witnessing maximum buying interest.

Asian equity markets finished broadly higher today with shares in China leading the region. The Shanghai Composite is up 1.36% while Hong Kong's Hang Seng is up 0.56% and Japan's Nikkei 225 is up 0.10%. European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.11% while France's CAC 40 is up 0.09% and Germany's DAX is up 0.04%.

The rupee was trading at Rs 64.32 against the US$ in the afternoon session. Oil prices were trading at US$ 46.71 at the time of writing.

Pharma stocks closed the day on a positive note with Aurobindo Pharma and Wockhardt leading the gains. Aurobindo Pharma share price soared over 4.5% after the company received final approval from the US Food & Drug Administration (USFDA) to manufacture Sevelamer Carbonate tablets 800mg.

Sevelamer Carbonate tablets are a therapeutic equivalent generic version of Genzyme's Renvela tablets and is indicated for the control of serum phosphorus in patients with chronic kidney disease (CKD) on dialysis.

The approved product has an estimated market size of US$1.9 billion for the twelve months ending May 2017, according to IMS.

In another development, Zydus Cadila has commercially launched its Mesalamine Delayed Release Tablets USP, 1.2g in the US market. Zydus was the first to file an Abbreviated New Drug Application (ANDA) for a generic version of Lialda.

Reportedly, this is currently the only generic available to patients in the US.

Lately, pharmaceutical companies have been facing a surfeit of problems in the largest generic market, the US. Rising competition and consolidation in the distribution channel have led to price erosion and delayed approvals for them.

Once considered a safe haven for investors has been on a steady decline over the past two years.

The list of pharma sector woes (subscription required) is long. But, is there light at the end of the tunnel? Girish Shetty, our pharma analyst thinks there is.

As per him, it doesn't make sense to paint all pharma stocks with the same brush. The leaders of the industry will certainly survive this phase. And just like IT, there are interesting, niche pharma stocks that are worth your attention.

So, what is key to identifying potential multibagger stocks? How does one pick them at the right time and ride them to their full potential? How many multibaggers do you really need to achieve the big riches that you desire?

Cadila Healthcare share price finished up by 3.7%.

Moving on to the news from the economy. Global ratings agency Fitch Ratings in its latest report on impact of Goods and Services Tax (GST) on different sectors, has said that the new indirect tax regime is likely to be beneficial for auto, cement and organised retail sectors.

However,it will have a negative impact on oil and gas, and SME sectors. It further said that the impact would be broadly neutral for property, electricity, telecom, pharmaceutical and fertiliser sectors.

GST's Impact on Aam Aadmi's Spending

The rating agency pointed that under the Indian GST regime, a corporate will only be able to apply GST input tax credits after its supplier of goods or services has first settled its GST payment with the government.

This means that the burden of non-compliance by the supplier will rest with the purchaser and not the government. Further, GST tax truancy by financially weak and non-compliant companies lower down the supply chain could limit the amount of input tax credits available for the larger and financially strong corporate.

Also, as Rahul Shah, co-head of research, is of opinion that the positives will far outweigh the negatives in the long term. Here's an excerpt of what he wrote in the recent edition of The 5 Minute WrapUp:

• "All of this is formalisation in action. Formalisation is good for the economy, good for consumers, and good for the government too. In fact, it is a long-term positive for all stakeholders. And if everyone benefits, stock markets can't be far behind."

The process, however, certainly won't be glitch-free. There will be pain in the short term as the informal economy could see job losses and decreased demand.

And here's a note from Profit Hunter:

Aurobindo Pharma is the top gainer from the Nifty 50 Index - up 4% for the day. Let's have a look at its chart.

The stock resisted twice from its life high of 890 levels and fell to a new 52-week low of Rs 503. In an earlier note, we mentioned the stock was forming bullish divergence with the RSI indicator near its 52-week low. The volumes were also confirming the price action. But the neckline of the double bottom pattern at Rs 590 was a major hurdle.

But the stock surpassed this hurdle and rallied almost vertically to gain 35% from the 590 level.

Today, the stock surged 4.5% with heavy volumes after a USFDA nod for a tablet version of gRenvela

Given the current strong momentum, will the stock re-test its life high? Let's wait and watch...

Aurobindo Pharma Rallied 4% for the Day

(Click on image to enlarge)