Volatility continued in mid-morning trade as key benchmark indices regained positive terrain after slipping into the red in morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was up 51.46 points or 0.2% at 26,012.24. The Nifty 50 index was currently up 10.80 points or 0.13% at 8,013.10. Trading so far during the day has been in a narrow range around the flat line. The Sensex was currently trading above the psychological 26,000 mark after alternately moving above and below that mark in morning trade after reclaiming that level in early trade. The Nifty regained the psychological 8,000 level after falling below that mark in morning trade. Firmness in Asian stocks supported gains on the domestic bourses.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,461 shares rose and 687 shares fell. A total of 134 shares were unchanged. Buying was witnessed in mid-cap and small-cap stocks for the second day running after witnessing a recent strong selling pressure in these counters. The BSE Mid-Cap index was currently up 0.56%. The BSE Small-Cap index was currently up 0.76%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian stocks extended previous session's gains as investors tried to share in the exuberance of Wall Street's record run. Japanese stock markets were closed for a holiday. US stocks closed at record highs for a second straight session yesterday, 22 November 2016. The Dow Jones Industrials Average and S&P 500 cleared psychological milestones but major indexes simultaneously reached record highs for a second straight day with Dow closing above the 19,000 level for the first time. US markets have been in a strong uptrend since the presidential election two weeks ago. Donald Trump's unexpected victory was viewed as a positive for Wall Street, because the president-elect is expected to advocate for policiesincluding massive corporate tax cuts and financial and environmental deregulationseen as supportive for economic growth.
IT stocks were mixed. HCL Technologies (down 0.34%), and Wipro (down 1.31%) edged lower. Tech Mahindra (up 0.86%), Infosys (up 0.22%), and TCS (up 0.78%) gained.
Pharma stocks gained on weak rupee. Aurobindo Pharma (up 0.64%), Cipla (up 0.67%), Dr Reddy's Laboratories (up 0.32%), Divi's Laboratories (up 0.11%), Glenmark Pharmaceuticals (up 0.35%) and Cadila Healthcare (up 1.91%) gained. Weakness in rupee could boost sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports.
Lupin gained 1.38% after the company announced that it has received tentative approval for its Abacavir Sulfate and Lamivudine Tablets, 600 mg/300 mg from the United States Food and Drug Administration (FDA) to market a generic version of ViiV Healthcare Company's Epzicom Tablets, 600 mg/300 mg. Lupin's Abacavir Sulfate and Lamivudine Tablets, 600 mg/300 mg are the AB rated generic equivalent of ViiV Healthcare Company's Epzicom Tablets, 600 mg/300 mg. Abacavir Sulfate and Lamivudine Tablets, 600 mg/300 mg in combination with other antiretroviral agents is indicated for the treatment of human immunodeficiency virus type 1 (HIV-1) infection. Epzicom Tablets had US sales of $426 million as per IMS MAT September 2016 data. The announcement was made during market hours today, 23 November 2016.
Sun Pharmaceutical Industries rose 1.05% after the company announced the execution of definitive agreements by its wholly owned subsidiary, for the acquisition of 85.1% of JSC Biosintez, a Russian pharmaceutical company engaged in manufacture and marketing of pharmaceutical products in Russia and CIS region. The announcement was made before trading hours today, 23 November 2016. The equity consideration for the 85.1% stake is $24 million. Sun Pharma would also assume a debt of approximately $36 million as part of this transaction. Biosintez is a Russian pharmaceutical company focusing on the hospital segment with annual revenues of approximately $52 million for 2015. It has a manufacturing facility in Penza region with capabilities to manufacture a wide variety of dosage forms including pharmaceuticals for injections, blood substitutes, blood preservatives, ampoules, tablets, ointment, creams, gels, suppositories, APIs, etc.
The transaction, expected to be completed by end of 2016, is subject to approval of the Russian Federal AntiMonopoly Service and other closing conditions. As per IMS (MAT September 2016), the Russian pharmaceutical market recorded sales of approximately $10 billion. The market recorded a growth of 7.4% in local currency terms as per IMS.
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In a separate announcement after market hours yesterday, 22 November 2016, Sun Pharma said it received a letter from the Chief Financial Officer (CFO), Uday Baldota that he would be tendering his resignation as the CFO of Sun Pharmaceutical Industries to be effective with effect from in and around April 2017 due to his shifting to United States of America in and around April 2017 to look after the business of Taro Pharmaceutical Industries, a subsidiary of Sun Pharmaceutical Industries as its Chief Executive Officer.
Wockhardt lost 2.26% after the company announced that US Food and Drug Administration has issued a warning letter to its stepdown subsidiary, C P Pharmaceuticals, Wrexham, United Kingdom. The announcement was made during market hours today, 23 November 2016. Wockhardt said that currently, there is no business being conducted from C P Pharmaceuticals to the US market. C P Pharmaceuticals has already initiated required steps to address the concerns raised by US Food and Drug Administration (USFDA) and will be responding to the agency within the prescribed time, Wockhardt said.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 68.445, compared with its close of 68.25 during the previous trading session.
A2Z Infra Engineering rose 5.6% after the company announced that its subsidiary, A2Z Green Waste Management (A2Z Green), has on 19 November 2016, agreed to a framework with one of its lenders for a settlement of its various debt obligation aggregating to Rs 416.18 crore. The settlement may include the transfer of two projects of A2Z Green namely, a 500 tonne per day (TPD) of processing and disposal unit for the purposes of municipal solid waste management at Indore city; and a 1500 TPD of P&D unit, collection & transportation facility of municipal solid waste along with 15 megawatts (MW) power plant, located in Kanpur city. The settlement would be subject to execution of definitive agreements and further subject to various requisite approvals of its stake holders including shareholders and lenders as may be required.
JBF Industries advanced 4.25% after net profit surged 244.89% to Rs 11.14 crore on 13.75% rise in total income to Rs 954.77 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 22 November 2016.
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