Key benchmark indices recovered soon after trimming intraday gains in mid-afternoon trade. At 14:19 IST, the barometer index, the S&P BSE Sensex, was up 78.63 points or 0.32% at 24,756. The gains for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was currently up 32.70 points or 0.44% at 7,545.25.
The market breadth indicating the overall health of the market was negative. On BSE, 1,369 shares fell and 1,072 shares rose. A total of 171 shares were unchanged. The BSE Mid-Cap index was currently down 0.04%. The BSE Small-Cap index was currently up 0.09%. Both these indices underperformed the Sensex.
In overseas stock markets, most Asian stocks edged higher on stronger currencies relative to the US dollar. A broad based weakness in the dollar aided gains in Asian currencies on the heels of the US Federal Reserve slashing its projections for rate increases to two in 2016 from an earlier projection of four after keeping rates unchanged at the conclusion of a two-day monetary policy review on Wednesday, 16 March 2016. Fewer US interest rates hikes could support demand for emerging-market assets because investors have less incentive to draw out money from risky assets in their search for higher yields in the US.
European stocks edged higher in the aftermath of a dovish statement from the Federal Reserve at the conclusion of a two-day monetary policy review on 16 March 2016. US stocks edged higher yesterday, 17 March 2016, as energy, materials and industrials sectors rose sharply, helped by soaring commodity prices.
Cement stocks extended previous session's gains. Shree Cement (up 2.44%), ACC (up 4.37%) and Ambuja Cements (up 0.09%) gained.
UltraTech Cement edged higher on media reports that a domestic brokerage has maintained its 'buy' rating on the stock. The stock was up 2.49%. The brokerage expects UltraTech Cement's revenue to grow at compounded annual growth rate of 14% for the period from FY 2016 to FY 2018. The brokerage reportedly said that UltraTech Cement stock offers the best opportunity in the cement sector in India and the stock can continue to outperform in the near term.
Grasim Industries advanced 1.46%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
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Most pharma stocks declined. Strides Shasun (down 1.37%), Glenmark Pharmaceuticals (down 3.42%), Dr Reddy's Laboratories (down 0.69%), Sun Pharmaceutical Industries (down 2.32%), GlaxoSmithKline Pharmaceuticals (down 1.18%), Wockhardt (down 2.38%), and Aurobindo Pharma (down 2.08%) dropped. Alkem Laboratories (up 0.56%), Cipla (up 0.34%), Divi's Laboratories (up 0.21%), Cadila Healthcare (up 0.33%), IPCA Laboratories (up 4.24%), and Piramal Enterprises (up 0.63%) gained.
Last week, the government through a notification in the official Gazette banned 344 fixed dose combination (FDC) drugs in the country after an expert panel appointed by the government found no therapeutic justification for those drugs. Later, a number of aggrieved pharma firms took legal recourse and got interim stay on the ban from the Delhi high court. The next hearing of the case is on 21 March 2016.
Lupin slumped on media reports that a foreign brokerage has downgraded the stock to underperform from buy in the wake of observations by the United States Food and Drug Administration (USFDA) on the company's Goa facility. The stock dropped 6.64% to Rs 1,563.25. The had lost 4.23% to settle at Rs 1,674.50 yesterday, 17 March 2016. The foreign brokerage reportedly said that two out of nine observations by USFDA are critical in nature. The brokerage added that due to the USFDA observations, many pending approvals linked to the company's Goa plant may get delayed.
It may be recalled that Lupin had announced early this week that USFDA recently inspected its Goa facility and cited nine observations. Lupin said that the observations by USFDA were on aspects such as inadequacy and adherence to Standard Operating Procedures (SOPs). Lupin had said that it is in the midst of putting together a response to address the USFDA's observations.
Torrent Pharmaceuticals rose 4.36% after the company's announcement that it has successfully obtained the Establishment Inspection Report from the United States Food and Drug Administration (USFDA) for its plant located at Dahez SEZ, in Gujarat. This plant has been set up to cater mainly to the regulated international markets such as US, Brazil, Germany etc, Torrent Pharma said. The plant has an installed capacity of about 7,500 million tablets/capsules and 25 metric tonne (MT) active pharmaceutical ingredient (API) per annum, the company said. Construction of phase II will commence soon and once commissioned the total capacity will increase to about 14,000 million tablets/capsules and 80 MT API per annum, it added.
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