A bout of volatility was witnessed as key benchmark indices slipped into negative zone from positive zone in mid-morning trade. At 11:17 IST, the barometer index, the S&P BSE Sensex, was down 20.19 points or 0.07% at 28,132.21. The Nifty 50 index was down 12 points or 0.14% at 8660.15. The Sensex rose 46.70 points, or 0.17% at the day's high of 28,199.10 in morning trade. The index fell 61.55 points, or 0.22% at the day's low of 28,090.85 at the onset of trading session. The Nifty rose 10.20 points, or 0.12% at the day's high of 8,682.35 in morning trade. The index fell 25.05 points, or 0.29% at the day's low of 8,647.10 at the onset of trading session.
The market breadth indicating the overall health of the market was negative. On BSE, 1,286 shares fell and 985 shares rose. A total of 118 shares were unchanged. The BSE Mid-Cap index was currently up 0.44%, outperforming the Sensex. The BSE Small-Cap index was currently down 0.04%. The decline in this index was lower than the Sensex's decline in percentage terms.
In overseas markets, most Asian stocks edged lower as fresh record closing highs in US overnight failed to boost sentiment. All three main indices in the US closed at record high yesterday, 15 August 2016, thanks in part to a sharp uptick in oil prices, which boosted energy and materials shares.
FMCG shares were in demand. Dabur India (up 1.05%), Colgate Palmolive (India) (up 1.04%), Marico (up 0.89%), Bajaj Corp (up 0.8%), Jyothy Laboratories (up 0.51%), Tata Global Beverages (up 0.51%), Hindustan Unilever (up 0.47%), Britannia Industries (up 0.42%), Godrej Consumer Products (up 0.36%), Procter & Gamble Hygiene & Health Care (up 0.34%) and GlaxoSmithKline Consumer Healthcare (up 0.27%), edged higher. Nestle India was down 0.85%.
Pharmaceutical shares were mixed. Wockhardt (down 2.99%), IPCA Laboratories (down 2.08%), Strides Shasun (down 1.88%), Aurobindo Pharma (down 1.58%), Biocon (down 1.38%), Sun Pharmaceutical Industries (down 1%), Cadila Healthcare (down 0.85%), Alkem Laboratories (down 0.8%), Dr Reddy's Laboratories (down 0.22%) and GlaxoSmithKline Pharmaceuticals (down 0.06%), edged lower. Lupin (up 0.61%), Glenmark Pharmaceuticals (up 1.17%), Piramal Enterprises (up 4.34%) and Divi's Laboratories (up 5.39%), edged higher.
Cipla shrugged off weak Q1 results. The stock was up 2.17% at Rs 527.85. The company's consolidated net profit fell 43.74% to Rs 365.24 crore on 6.94% fall in total income to Rs 3618.92 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours on Friday, 12 August 2016. Earnings before interest, taxation, depreciation and amortization (EBITDA) fell 42% to Rs 611 crore in Q1 June 2016 over Q1 June 2015. EBITDA margin dropped to 17% in Q1 June 2016 from 27.5% in Q1 June 2015.
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Cipla said that the growth momentum in key markets - India, South Africa and the US with focused cost containment measures has resulted in enhanced profitability in the base business. The recent acquisitions of InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc. are EBITDA margin-accretive at a consolidated level with the integration plans progressing smoothly. The company is preparing itself for the future with focused investments in R&D as well as portfolio build-up through strategic inorganic moves. The quarter also saw an improvement in cash flows on account of operational efficiencies, Cipla said.
Cipla also announced resignation of Subhanu Saxena from the post of Managing Director & Global Chief Executive Officer with effect from the close of business hours on 31 August 2016. The company has appointed Umang Vohra as the Managing Director & Global Chief Executive Officer of the company effective 1 September 2016. Vohra joined the company in October 2015 as the Global Chief Financial & Strategy Officer and was elevated as the Global Chief Operating Officer early this year as part of a planned progression.
L&T gained 0.66% after the company won a contract from the Maharashtra state government to convert Nagpur into an integrated smart city. The scope of work in phase 1 of the Nagpur smart city project will cover laying of 1,200 kilometers of optical fiber network backbone, creating 136 city wifi hotspots at key locations, establishing 100 digital interactive kiosks and developing city surveillance systems with 3,800 IP based cameras. Further, the city has identified a strip of approximately 6 kilometers from Japanese Garden Square to Orange City Hospital Square to be developed as a 'Smart Strip' with state-of-the-art systems powered by smart ICT interventions like smart transport, solid waste management. smart lighting, etc. which can be leveraged in a phased manner to ultimately cover the entire city. The Nagpur smart city project will be executed by L&T's Smart World & Communications business vertical.
On the macro front, inflation based on the consumer price index (CPI) accelerated 6.07% in July 2016 from 5.77% in June 2016. The core CPI inflation moved up to 4.52% in July 2016 from 4.39% in June 2016. The data was released after market hours on Friday, 12 August 2016.
Another data showed that industrial production (IIP) expanded 2.1% in June 2016 from a year earlier. The rise was primarily led by expansion in electricity and mining production. The data was released after market hours on Friday, 12 August 2016.
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