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Firmness persists on positive Asian cues

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Capital Market
Last Updated : Jan 03 2017 | 5:01 PM IST

The market depicted strength as key benchmark indices hit fresh intraday high in early afternoon trade. At 12:16 IST, the barometer index, the S&P BSE Sensex, was currently up 75.29 points or 0.28% at 26,670.74. The Nifty 50 index was currently up 26.90 points or 0.33% at 8,206.40. Strength in Asian stocks boosted investors' sentiment.

The Sensex rose 98.12 points, or 0.37% at the day's high of 26,693.57 in early afternoon trade. The index fell 107.08 points, or 0.40% at the day's low of 26,488.37 in morning trade. The Nifty rose 35.25 points, or 0.43% at the day's high of 8,214.75 in early afternoon trade. The index fell 30.90 points, or 0.38% at the day's low of 8,148.60 in morning trade.

Among secondary barometers, the BSE Mid-Cap index was currently up 0.63%. The BSE Small-Cap index was currently up 0.95%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1798 shares rose and 668 shares fell. A total of 94 shares were unchanged.

Overseas, Asian stocks were trading higher after a key indicator of China's private manufacturing showed robust gains in December 2016. Indonesia's Jakarta Composite Index was, however, down 0.49%. Japan was closed for an extended New Year holiday.

China's Caixin Manufacturing Purchasing Managers' index (PMI) rose 51.9, compared to 50.9 in November and beating forecasts for 50.7, on the back of increased demand. A reading above 50 represents expansion in a sector, whereas a reading below 50 represents contraction. The private manufacturing survey results come after figures at the weekend showed China's official PMI fell to 51.4 in December, slightly weaker than expectations.

Trading in US index futures indicated that the Dow Jones Industrial Average could rise 100 points at the opening bell today, 3 January 2017. US financial markets were closed yesterday, 2 January 2017.

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Back home, most IT shares edged higher. Infosys (down 1.49%), MindTree (down 1.21%), Wipro (down 0.56%), TCS (down 0.54%), MphasiS (down 0.22%) and Oracle Financial Services Software (down 0.06%), edged lower. Hexaware Technologies (up 0.02%), Persistent Systems (up 0.17%), HCL Technologies (up 0.69%) and Tech Mahindra (up 0.97%), edged higher.

Shares of logistics stocks jumped ahead of the meeting of the GST Council scheduled for later in the day. Transport Corporation of India (up 7.26%), Gati (up 6.37%), Snowman Logistics (up 5.98%), Sical Logistics (up 3.24%), Aegis Logistics (up 2.71%), Container Corporation of India (up 2.71%), Allcargo Logistics (up 2.62%), VRL Logistics (up 2.62%), Gateway Distriparks (up 2.52%) and Blue Dart Express (up 0.83%), edged higher.

According to media reports, the committee headed by Finance Minister Arun Jaitley is scheduled to meet representatives of six crucial sectors, including IT, telecom, banking and insurance, to assess the hurdles in the implementation of the new GST regime. Logistics is one sector that is seen as a major beneficiary of GST.

The two-day meeting will conclude on Wednesday. It will try to resolve the issue of dividing the administrative powers between the Centre and states. The meeting will also take up the issues of an integrated GST (IGST), reports added.

Panacea Biotec surged 6.08% after the company said its production of brand Cilamin 250 capsules has increased due to the receipt of additional quantity of raw material. The announcement was made during market hours today, 3 January 2017.

Panacea Biotec now has improved supply of Cilamin 250 capsules which has been made available in the retail market. Cilamin 250 capsules are used for treatment of Wilsons disease, Rheumatoid Arthritis and other conditions. The company had been witnessing short supply of these capsules in the market during the last few months due to non-availability of raw material D-Penicillamine in India.

On 9 December 2016, the company had released limited quantities of Cilamin 250 capsule to select stockiest all over India. Now, additional quantity of the same has been made available starting from 2 January 2017 at different stockiest all over India. Panacea Biotec said it is in regular touch with Department of Pharmaceuticals, NPPA and Drug Controller General of India for facilitating regular supplies of Cilamin 250 capsules in the market.

Suven Life Sciences gained 2.15% after the company announced that it has secured two product patents in Eurasia and Norway. The announcement was made during market hours today, 3 January 2017.

Suven Life Sciences announced the grant of one product patent from Eurasia and one product patent from Norway corresponding to the new chemical entities (NCEs) for the treatment of disorders associated with neurodegenerative diseases and these patents are valid through 2032 and 2025 respectively. The granted claims of the patents are from the mechanism of action include the class of selective H3 Inverse agonist compounds and 5HT6 compounds and are being developed as therapeutic agents and are useful in the treatment of cognitive impairment associated with neurodegenerative disorders like Alzheimer's disease, Attention deficient hyperactivity disorder (ADHD), Huntington's disease, Major Depressive disorder (MDD), Parkinson and Schizophrenia.

On the macro front, core sector output rose 4.9% in November 2016 on the back of a strong expansion in steel production and electricity generation, but the pace of growth was down from 6.6% in October 2016, data released yesterday, 2 January 2017, showed. Part of the buoyancy was due to the base effect of a lower growth rate at 0.6% in November 2015.

Meanwhile, during the current financial year 2016-17, the Government has so far realised Rs 23528.73 crore, which include Rs 21432.38 crore through minority stake sale in 14 central public sector enterprises (CPSEs) and Rs 2096.35 crore through strategic disinvestment. The total realization of Rs 21432.38 crore, by end-November 2016 through CPSEs' disinvestment receipts, constitutes around 59.53% of the budgeted target of Rs 36000 crore (CPSEs' disinvestment), the Ministry of Finance said in a statement during trading hours today, 3 January 2017.

The disinvestment target for the current financial year ending March 2017 has been estimated at Rs 56500 crore comprising Rs 36000 crore from disinvestment of CPSEs and Rs 20500 crore from strategic disinvestment.

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First Published: Jan 03 2017 | 12:24 PM IST

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