After opening the day in green, share markets in India witnessed buying an interest in the afternoon session and ended the day strong. Gains were seen across most sectors with stocks in the metals sector and stocks in the FMCG sector, leading the gains.

At the closing bell, the BSE Sensex stood higher by 348 points (up 1.1%) and the NSE Nifty closed higher by 112 points (up 1.1%). The BSE Mid Cap index ended the day up by 1%, while the BSE Small Cap index ended the day up by 1.2%.

Asian stock markets finished higher mixed, while the Japanese indices continued their rise from a record close. As of the most recent closing prices, the Hang Seng was higher marginally by 0.2% and the Shanghai Composite was down by 0.1%. The Nikkei 225 was up by 0.5%. European markets too were trading marginally in green. The FTSE was 100 up by 0.2%. The DAX was higher by 0.1% while the CAC 40 was flat.

The rupee was trading at Rs 65.05 against the US$ in the afternoon session. Oil prices were trading at US$ 50.84 at the time of writing.

In the news from pharma sector, Cadila Healthcare received final nod from US drug regulator for Desvenlafaxine tablets.

As per the news, the company has received final approval from the USFDA to market Desvenlafaxine extended-release tablets, 50 mg and 100 mg.

The drug, which is used to treat major depression, will be manufactured at the group's formulations manufacturing facility at Moraiya, Ahmedabad.

Owing to the above development, Cadila Healthcare Ltd share price witnessed buying interest today and closed the day up by around 2.4%.

Speaking of pharma companies and drug approvals, note that USFDA alerts on Indian pharma companies have increased over the past few years. Regulators used to visit the plants every two years. Now they come every eight months. Increasing inspections have led to a total of 41 import alerts in the past eight years - 33 of them (80%) in just the last four years (2013-16). This clearly signifies increased USFDA scrutiny on Indian pharma firms. If that wasn't enough, increasing pricing pressure in the generics segment has dented realisations.

However, the recent development of USFDA expediting the drug approval process can bring some respite for Indian pharma companies. This comes as drug approvals for Indian companies have gone up 50% in the period from January to June 2017 compared to the same period last year, as can be seen from the chart below:

Expediting Drug Approval Process to be a Positive for Industry

While short-term pain is expected, companies with strong R&D capabilities and compliant plants will do well over the long term. The uncertainties make it important to be stock specific in the sector. It is important to look for companies that have the competence and staying power to overcome the challenges.

In the news from commodity markets, the International Energy Agency (IEA) stated that global supply and demand for crude oil will be largely balanced next year. This, as per the agency, is because growth in consumption will help erode a three-year-old overhang of unused fuel and should mostly offset a steep rise in output.

The news fueled optimism in the crude oil markets. It also comes at a time when Saudi Arabia said it would cut oil exports in November. Also, a big chunk of US offshore production has remained offline.

As per the news, the Saudis have sought to expedite Organisation of the Petroleum Exporting Countries' (OPEC's) effort to drain a global glut of crude oil by capping exports in addition to making voluntary production cuts. OPEC and other crude exporters led by Russia are keeping 1.8 million barrels a day off the market.

The above news led to optimism of lower supply levels and aided crude oil prices.

One shall note that the OPEC and non-OPEC producers including Russia have agreed to reduce crude oil output by about 1.8 million barrels per day (bpd) until March in order to reduce global oil inventories and support prices.

The group is now in talks to extend the above expiry in March.

From the IPO markets, General Insurance Corporation of India (GIC's) 113 billion IPO got subscribed over 80% on the second day of the bidding process today.

General Insurance Corporation of India (GIC Re), a leading Government PSU, was incorporated in 1972 and is the largest re-insurance company in India. It provides reinsurance for various general insurance products.

GIC Re is the largest reinsurance company in India in terms of gross premiums accepted in Fiscal 2017, and accounted for approximately 60% of the premiums ceded by Indian insurers to reinsurers during Fiscal 2017.

According to CRISIL Research, it ranked as the 12th largest global reinsurer in 2016 and the 3rd largest Asian reinsurer in 2015, in terms of gross premiums accepted. GIC provides reinsurance across many key business lines including fire (property), marine, motor, engineering, agriculture, aviation/space, health, liability, credit and financial and life insurance.

And here's a note from Profit Hunter:

Bharti Infratel is among the top gainers in the Nifty 50 Index up 5%. Take a look at its chart below.

The stock topped out at 500 in August 2015. It traded in a down sloping channel line to touch a low of 282 in February 2017. It formed a double bottom pattern near the channel's support line. After the stock broke out the pattern, it rallied strongly to break above the channel's resistance line in April 2017.

But, the rally didn't stop and the stock continued to move up. Today, it is up 5% with strong volumes to touch a new 52-week high.

What remains to be seen is, if the stock can go on to challenge its August 2015 high of 500.

Bharti Infratel at its 52-Week High

(Click on image to enlarge)