Key indices marched ahead and hit fresh intraday high in mid-morning trade. Barring IT stocks, all other sectors rallied. The Nifty crossed 11,600 mark and traded firmly higher. At 11:25 IST, the barometer index, the S&P BSE Sensex, was up 1190.97 points or 3.13% at 39,205.59. The Nifty 50 index was up 350.40 points or 3.11% at 11,624.60.
The S&P BSE Mid-Cap index was up 2.94%. The S&P BSE Small-Cap index was up 2.26%.
The market breadth was tilted towards the buyers. On the BSE, 1537 shares rose and 690 shares fell. A total of 136 shares were unchanged. In the Nifty 50 index, 34 stocks advanced while 16 stocks declined.
Dr Reddy's Laboratories fell 3.27% to Rs 2736 after media reports suggested that the company has halted worldwide supply of Ranitidine until the outcome of a US FDA investigation becomes available. Ranitidine is an over-the-counter (OTC) and prescription drug which decreases the amount of acid created by the stomach. As per reports, the drug maker has suspended supply of its drug ranitidine worldwide as a precautionary measure, following the ongoing probe by the US Food and Drug Administration into the reported impurity N-nitrosodimethylamine in it at low levels. The reports said that the FDA in a statement on September 13 had said it is working with international regulators and industry partners to determine the source of this impurity in ranitidine and examining levels of NDMA in ranitidine and evaluating any possible risk to patients. The FDA has been investigating NDMA and other nitrosamine impurities in blood pressure and heart failure medicines such as Valsartan since last year, the reports added.
Filatex India advanced 4.19% after the company its polymerization capacity. The company announced that the commercial production of expansion scheme to increase its polymerization capacity of 150 TPD from 900 TPD to 1,050 TPD through debottlenecking and adding machines for producing 170 TPD of Partially Oriented Yarn at Dahej unit has commenced on 19 September 2019. Filatex India benefitted from FM Nirmala Sitharaman's move to slash corporate tax to 22% without cess and exemptions. As on 31 March 2019, Filatex India paid a corporate tax of 35.21%.
IT stocks declined amid firmness in the rupee. Infosys (down 3.74%), Oracle Financial Services Software (down 3.71%), TCS (down 2.96%), Mphasis (down 2.55%), Hexaware Technologies (down 2.45%), Tech Mahindra (down 2.37%), Wipro (down 1.89%), HCL Technologies (down 1.44%) and Zensar Technologies (down 0.72%) declined.
The S&P BSE IT was down 2.81% at 15,141.26. The Nifty IT was down 2.5% at 15,104.10.
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In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 70.925, compared with its close of 70.94 during the previous trading session.
A firm rupee adversely affects operating profit margin of IT firms as the sector derives a lion's share of revenue from exports.
Overseas, Asian shares are trading mixed on Monday on hopes of an interim Sino-US tariff deal after the two countries described their talks as productive and constructive.
U.S. stocks closed lower Friday, as investors looked beyond a litany of central-bank decisions of the past week and focused on the state of China-U.S. trade talks.
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