Key benchmark indices edged lower in early trade. At 9:24 IST, the barometer index, the S&P BSE Sensex was down 35.32 points or 0.14% at 25,217. The decline in 50 unit Nifty 50 index in percentage terms was lower than the Sensex's fall. The Nifty was off 2.05 points or 0.03% at 7,681.25.
In overseas stock markets, Asian markets edged lower as record low oil prices weighed on energy stocks. US stocks edged higher yesterday, 10 December 2015, as beaten down energy stocks witnessed bargain hunting.
Closer home, the broad market depicted strength. There were almost two gainers against every loser on BSE. 781 shares rose and 398 shares declined. A total of 68 shares were unchanged. The BSE Mid-Cap index was currently up 0.06%. The BSE Small-Cap index was currently up 0.21%. Both these indices outperformed the Sensex.
Shares of oil exploration and production (E&P) firms declined along with drop in global crude oil prices. Oil India (down 0.77%), ONGC (down 0.14%) and Reliance Industries (down 0.51%) edged lower. Cairn India (up 0.55%) edged higher. Lower crude oil prices would result in lower realization from crude sales for oil exploration firms.
Infosys rose 0.44% at Rs 1,051.05 after the company announced that it has won a five-year contract to transform the application landscape of DNB Bank of Norway. The announcement was made after market hours yesterday, 10 December 2015.
TCS fell 0.2% at Rs 2,376.05. The stock hit a high of Rs 2,395 and a low of Rs 2,363.05 so far during the day. TCS announced the inauguration of phase II of its campus at Kalinga Park in Bhubaneswar. With the addition of 3,000 seats in phase II, the Kalinga Park campus now has operational capacity of 4,000 seats. The announcement was made after market hours yesterday, 10 December 2015.
Cipla rose 0.29% at Rs 637.05 after the company announced that the board of directors of the company yesterday, 10 December 2015, approved the transfer of the consumer healthcare business of the company to Cipla Health on a going concern basis by way of a slump sale for a lumpsum consideration of Rs 16 crore. Cipla Health is a newly incorporated subsidiary of the company and was incorporated on 27 August 2015. It will focus its business activities in the consumer healthcare space. The company made the announcement after market hours yesterday, 10 December 2015.
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The consumer healthcare business to be transferred to Cipla Health includes the scope of the business as approved on 9 July 2015 along with certain additional business. The amount and percentage of the turnover contributed by the consumer healthcare business of the company for the financial year ended 31 March 2015 (FY 2015) was Rs 54.28 crore and about 0.48% respectively. The net worth of consumer healthcare business of the company as on 31 March 2015 was Rs 7.88 crore contributing 0.07% of the net worth of the company.
The transaction will enable Cipla to participate in the attractive and growing over-the-counter market.
Pursuant to the Board approval, the business transfer agreement is in the process of being finalised. The transaction is expected to be completed within the fourth quarter of the financial year ending 31 March 2016 (FY 2016), subject to the execution of the agreement and completion of certain conditions precedent.
On macro front, the government is scheduled to unveil index of industrial production (IIP) data for October 2015 after market hours today, 11 December 2015. India's IIP growth moderated to 3.6% in September 2015 over a year ago compared with the revised growth of 6.3% in August 2015. The IIP growth had showed an improvement from 2.6% growth recorded in September 2014.
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