After hitting intraday low in mid-morning trade, the key benchmark indices recovered in early afternoon trade. At 12:22 IST, the barometer index, the S&P BSE Sensex was down 71.69 points or 0.28% at 25,417.88. The Nifty 50 index was currently down 21.90 points or 0.28% at 7,793. Sentiment was impacted after India's weather department, the India Meteorological Department, in its latest update forecast a delay in the onset of the Southwest monsoon.
Earlier, the Sensex and the Nifty, both, hit one week low. The Sensex lost 137.95 points or 0.54% at the day's low of 25,351.62 in mid-morning trade, its lowest level since 9 May 2016. The barometer index rose 117.35 points or 0.46% at the day's high of 25,606.92 at onset of the trading session. The Nifty fell 42.25 points or 0.54% at the day's low of 7,772.65 in mid-morning trade, its lowest level since 9 May 2016. The index rose 30.75 points or 0.39% at the day's high of 7,845.65 at onset of the trading session.
In overseas markets, most Asian stocks rose, shrugging off soft Chinese data released over the weekend. China's investment, factory output and retail sales all grew more slowly than expected in April, adding to doubts about whether the world's second-largest economy is stabilizing, data released on Saturday showed. Industrial output rose 6% year-over-year in April, compared with 6.8% growth in March, the National Bureau of Statistics said. Fixed-asset investment in urban areas grew by a weaker-than-expected 10.5% year-over-year in the January-to-April period, compared with an annual increase of 10.7% for the first three months of 2016. Retail sales grew by a less-than-expected 10.1% in April compared with a year earlier, slowing from March's 10.5% year-over-year rise. US stocks ended lower during the previous trading session on Friday, 13 May 2016 on a slump in consumer-focused companies.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,228 shares declined and 1,049 shares rose. A total of 142 shares were unchanged. The BSE Mid-Cap index was currently up 0.08%, outperforming the Sensex. The BSE Small-Cap index was currently off 0.21%. The fall in this index was lower than the Sensex's decline in percentage terms.
IT stocks were mixed. TCS (up 0.49%), Infosys (up 0.46%), Tech Mahindra (up 1.68%) and MphasiS (up 1.18%) rose. Wipro (down 0.13%), HCL Technologies (down 0.22%) and Oracle Financial Services Software (down 2.03%),
Pharma shares saw mixed trend. Dr Reddy's Laboratories (up 3.31%), Glenmark Pharmaceuticals (up 0.73%), Lupin (up 0.48%), Alkem Laboratories (up 1.2%) and GlaxoSmithKline Pharmaceuticals (up 0.99%), rose. Cadila Healthcare (down 0.96%), Cipla (down 0.86%), Sun Pharmaceutical Industries (down 0.06%), and Wockhardt (down 0.17%) fell.
Aurobindo Pharma rose 0.09% after the company received final approval from United States Food & Drug Administration to manufacture and market Bupivacaine Hydrochloride Injection. The announcement was made during market hours today, 16 May 2016.
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Aurobindo Pharma said that Bupivacaine Hydrochloride Injection USP, 0.25% (2.5 mg/mL) and 0.5% (5 mg/mL) multiple dose vials is expected to be launched in Q2 September 2016. Bupivacaine Hydrochloride Injection is used for the production of local or regional anesthesia or analgesia for surgery, diagnostic and therapeutic procedures, and for obstetrical procedures. The approved product has an estimated market size of $5.6 million in the US for the twelve months ended 31 March 2016, according to IMS.
Piramal Enterprises gained 1.69%. Shares of Pfizer gained 0.39%. Piramal Enterprises after market hours on Friday, 13 May 2016 said that its consumer products division has entered into an agreement to acquire four brands from Pfizer for a consideration of Rs 110 crore. Piramal Enterprises said that the acquisition includes brands namely, Ferradol, Neko, Sloan's and Waterbury's Compound. Additionally, the agreement also includes the trademark rights for Ferradol and Waterbury's Compound in Bangladesh and Sri Lanka. These brands hold a rich legacy and have a high consumer pull and are available in India for the past 30 plus years, Piramal said in a statement. These products currently operate in a market which is currently estimated at Rs 7000 crore, it added. Completion of the deal is subject to certain conditions including regulatory approvals, Piramal said.
Indraprastha Gas rose 1.48% after net profit rose 12.27% to Rs 107.64 crore on 3.43% decline in net sales to Rs 881.57 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours on Friday, 13 May 2016.
Among macro data, the inflation based on wholesale price index (WPI) stood at 0.34% in April 2016 as compared to a reading of negative 0.85% in March 2016, data released by the government today, 16 May 2016 showed.
India's weather department, the India Meteorological Department (IMD) on Sunday, 15 May 2016 said that the statistical model forecast suggests that the monsoon onset over Kerala in this year is likely to be slightly delayed. The southwest monsoon is likely to set over Kerala on 7 June 2016 with a model error of 4 days. The arrival of the south-west monsoon in Kerala marks the beginning of monsoon season. Earlier, IMD in its release of the long range forecast for the 2016 southwest monsoon season rainfall on 12 April 2016, said that the monsoon seasonal rainfall during the forthcoming monsoon is likely to be 106% of the Long Period Average (LPA) with a model error of 5%. The LPA of the seasonal rainfall over the country as a whole for the period 1951-2000 is 89 cm.
Meanwhile, the latest data showed that India's merchandise exports continued to register year-on-year decline in value terms at the beginning of the new financial year. Merchandise exports fell 6.74% at $20.57 billion in April 2016 over April 2015. Non-petroleum exports fell 3.68% at $18.58 billion in April 2016 over April 2015. The trend of falling exports is in tandem with other major world economies, according to a statement issued by the Ministry of Commerce & Industry. Imports fell 23.1% at $25.41 billion in April 2016 over April 2015. Oil imports fell 24.01% at $5.65 billion. Non-oil imports fell 22.83% at $19.76 billion. The trade deficit fell sharply to $4.84 billion in April 2016 from $10.99 billion in April 2015. The commerce ministry released the trade data for April 2016 after trading hours on Friday, 13 May 2016.
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