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Apollo Tyres scrip on a roll

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Last Updated : Jan 08 2014 | 11:55 PM IST

Key benchmark indices extended intraday gains in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 68.69 points or 0.33%, up 73.75 points from the day's low and off 17.61 points from the day's high. The market breadth, indicating the overall health of the market, was strong. Gains in Asian stocks and overnight rally in US stocks underpinned sentiment on the domestic bourses. In the foreign exchange market, the rupee edged higher against the dollar on global risk on sentiment.

Bajaj Auto rose after three bulk deals were executed on the counter on BSE. Pharma stocks were in demand on renewed buying. Ranbaxy Laboratories rose in volatile trade after the company said that its wholly owned subsidiary Ranbaxy Pharmaceuticals Canada Inc. (RPCI) has received approval from Health Canada to manufacture and market RAN-Donepezil Hydrochloride 5 mg and 10 mg tablets. Tyre shares edged higher, with Apollo Tyres hitting record high.

Asian stocks edged higher on Wednesday, 8 January 2014, as the International Monetary Fund said it will raise its global economic growth forecast and as the US trade deficit narrowed.

Key benchmark indices edged higher amid initial volatility on firm Asian stocks. The Sensex retained positive zone in morning trade. Key benchmark indices extended intraday gains in mid-morning trade.

Foreign institutional investors (FIIs) sold shares worth a net Rs 567.02 crore on Tuesday, 7 January 2014, as per provisional data from the stock exchanges.

At 11:15 IST, the S&P BSE Sensex was up 68.69 points or 0.33% to 20,761.93. The index gained 86.30 points at the day's high of 20,779.54 in early trade. The index fell 5.06 points at the day's low of 20,688.18 in early trade.

The CNX Nifty was up 22.85 points or 0.37% to 6,185.10. The index hit a high of 6,190.65 in intraday trade. The index hit a low of 6,160.35 in intraday trade.

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The market breadth, indicating the overall health of the market, was strong. On BSE, 1,412 shares gained and 637 shares fell. A total of 135 shares were unchanged.

The total turnover on BSE amounted to Rs 815 crore by 11:15 IST, compared with Rs 488 crore by 10:20 IST.

Among the 30-share Sensex pack, 20 stocks gained and rest of them declined.

Bajaj Auto rose 0.75% to Rs 1,904.15 after three bulk deals were executed on the counter on BSE today, 8 January 2014. A bulk deal of 55,181 shares was executed at Rs 1,902.15 per share at 9:47 IST. One more bulk deal of 55,182 shares was executed at Rs 1,895.80 per share at 9:47 IST. Another bulk deal of 1 lakh shares was executed at Rs 1,902.50 per share at 10:36 IST.

Pharma stocks were in demand on renewed buying. Cadila Healthcare (up 5.43%), Cipla (up 2.22%), Dr Reddy's Laboratories (up 0.47%), Glenmark Pharmaceuticals (up 0.1%), Lupin (up 1.09%), Sun Pharmaceutical Industries (up 2.4%) and Wockhardt (up 2.41%) gained.

Ranbaxy Laboratories rose 0.03% to Rs 481.10 in volatile trade. The stock hit a high of Rs 485.50 and low of Rs 476 so far during the day. Ranbaxy Pharmaceuticals Canada Inc. (RPCI), a wholly owned subsidiary of Ranbaxy Laboratories (RLL), today, 8 January 2014, announced that RPCI received approval from Health Canada on 24 December 2013 to manufacture and market RAN-Donepezil Hydrochloride 5 mg and 10 mg tablets. The total market size of Aricept (Donepezil Hydrochloride) in Canada is $153.9 million ($ CAD) [IMS-CDH: November 2013] and growing at 38% (extended units). Donepezil Hydrochloride is indicated in the treatment of dementia in Alzheimer's patients.

Ranbaxy Pharmaceuticals Canada Inc. (RPCI) based in Mississauga, Ontario, Canada, is a wholly owned subsidiary of Ranbaxy Laboratories (RLL). RPCI is engaged in the sale and distribution of generic prescription products in the Canadian healthcare system.

Tyre shares edged higher. CEAT (up 1.24%), JK Tyre & Industries (up 1.87%), MRF (up 0.58%) and TVS Srichakra (up 0.3%) gained.

Apollo Tyres jumped 5.32% to Rs 111.95 after striking a record high of Rs 113.50 in intraday trade. High volumes accompanied the rally in the counter. On BSE, so far 46.41 lakh shares were traded in the counter, compared with average daily volume of 13.01 lakh shares during the past one quarter.

Apollo Tyres late last month issued a press statement in response to Cooper Tire & Rubber Company's decision to terminate merger agreement with Apollo Tyres. The company said that the management is disappointed as Cooper has prematurely attempted to terminate the merger agreement. While Cooper's lack of control over its largest Chinese subsidiary -- Cooper Chengshan Tire Company -- and its inability to meet its legal and contractual financial reporting obligations has considerably complicated the situation, Apollo has made exhaustive efforts to find a sensible way forward over the past several months, Apollo Tyres said. However, Cooper has been unwilling to work constructively to complete a transaction that would have created value for both the companies and their shareholders, Apollo Tyres said. Cooper's actions leave Apollo no choice but to pursue legal remedies for Cooper's detrimental conduct, Apollo Tyres said.

Apollo Tyres said that the company has many other compelling growth opportunities around the world which it will continue to pursue. The company said its business is performing well, as evidenced by the strong top line and bottom line results for Q2 September 2013 and that the management remains focused on executing the company's standalone strategic plan to maximum value for Apollo's shareholders.

In the foreign exchange market, the rupee edged higher against the dollar on global risk on sentiment. The partially convertible rupee was hovering at 62.24, compared with its close of 62.30/31 on Tuesday, 7 January 2014.

The next major trigger for the stock market is Q3 December 2013 corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year and/or the next year. The Q3 earnings season begins later this week when IT major Infosys and private sector bank IndusInd Bank unveil their earnings on Friday, 10 January 2014.

The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.

Asian stocks edged higher on Wednesday, 8 January 2014, as the International Monetary Fund said it will raise its global economic growth forecast and as the US trade deficit narrowed. Key benchmark indices in Taiwan, China, Hong Kong, Singapore and Japan rose by 0.27% to 1.5%. Key benchmark indices in South Korea and Indonesia fell by 0.01% to 0.02%.

China is due to publish December trade data today, 8 January 2014. China will release December inflation figures tomorrow, 9 January 2014.

Trading in US index futures indicated that the Dow could advance 21 points at the opening bell on Wednesday, 8 January 2014. US stocks rallied on Tuesday, 7 January 2014, helped by data showing a smaller-than-expected trade gap and gains by health-care stocks following an upgrade for UnitedHealth Group Inc. The US trade deficit fell almost 13% to $34.3 billion in November from a revised $39.4 billion in the prior month, the Commerce Department said Tuesday.

Boston Fed President Eric Rosengren on Tuesday said the central bank should only wind down its bond-buying program gradually. San Francisco Fed President John Williams said the Fed likely will end its bond buys this year, adding that he sees "newfound momentum" in the economy.

The US Federal Reserve will release minutes of its December Federal Open Market Committee policy meeting later in the global day today, 8 January 2014.

The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. The Federal Reserve said after a two-day monetary policy review on 18 December 2013 that it will cut its monthly bond purchases to $75 billion from $85 billion starting in January 2014 amid an improved outlook for the job market in the world's largest economy. The US central bank is poised to continue winding down its stimulus measures gradually this year.

The ADP Research Institute reports the change in US company payrolls later in the global day today, 8 January 2014.

The US government will unveil the influential non-farm payroll report for December 2013 on Friday, 10 January 2014.

The European Central Bank holds a monetary policy meeting tomorrow, 9 January 2014. UK's central bank -- Bank of England -- also undertakes monthly monetary policy review tomorrow, 9 January 2014.

The IMF expects to upgrade its outlook for global economic growth, IMF Managing Director Christine Lagarde told reporters in Kenyan capital of Nairobi. The organization plans to announce new forecast "in about three weeks from now," she said.

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First Published: Jan 08 2014 | 11:17 AM IST

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