Trading for the week started on a positive note as key equity indices finished higher in a volatile trade on Monday. Pharmaceuticals and IT shares advanced while metals and auto sector shares witnessed selling. Indices were choppy in intraday as rising oil prices and a weakening rupee spooked investors during the earnings season, amid negative Asian cues.
The Sensex rose 131.52 points or 0.38% to settle at 34,865.10. The index rose 275.07 points, or 0.79% at the day's high of 35,008.65. The index fell 173.60 points, or 0.50% at the day's low of 34,559.98.
The Nifty 50 index rose 40 points or 0.38% to settle at 10,512.50. The index rose 53.80 points, or 0.51% at the day's high of 10,526.30. The index fell 62.35 points, or 0.60% at the day's low of 10,410.15.
Among secondary barometers, the BSE Mid-Cap index rose 0.62%. The BSE Small-Cap index rose 1.37%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1637 shares rose and 967 shares fell. A total of 181 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Healthcare index (up 2.22%), the S&P BSE IT index (up 2.17%), the S&P BSE Teck index (up 1.96%), the S&P BSE Telecom index (up 1.09%), the S&P BSE Energy index (up 0.99%), the S&P BSE Power index (up 0.76%), the S&P BSE FMCG index (up 0.62%), the S&P BSE Oil & Gas index (up 0.41%) and the S&P BSE Industrials index (up 0.40%), outperformed the Sensex. The S&P BSE Basic Materials index (up 0.15%), the S&P BSE Finance index (up 0.12%), the S&P BSE Realty index (up 0.08%), the S&P BSE Utilities index (up 0.08%), the S&P BSE Capital Goods index (down 0.26%), the S&P BSE Bankex (down 0.31%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.36%), the S&P BSE Metal index (down 0.36%), the S&P BSE Auto index (down 0.46%) and the S&P BSE Consumer Durables index (down 1.21%), underperformed the Sensex.
Most auto shares declined. Mahindra & Mahindra (down 2.63%), Eicher Motors (down 2.22%), Maruti Suzuki India (down 1.39%), Escorts (down 0.6%), Hero MotoCorp (down 0.52%), TVS Motor Company (down 0.33%) and Bajaj Auto (down 0.1%), edged lower. Tata Motors (up 0.49%) and Ashok Leyland (up 1.30%), edged higher.
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Most IT shares rose. MphasiS (up 7.24%), Infosys (up 2.95%), MindTree (up 2.82%), Hexaware Technologies (up 2.02%), HCL Technologies (up 1.83%), TCS (up 1.60%), Wipro (up 1.39%) and Tech Mahindra (up 0.05%), edged higher. Oracle Financial Services Software (down 0.52%) and Persistent Systems (down 1.91%), edged lower.
Pharmaceutical shares were in demand. Cipla (up 3.78%), Wockhardt (up 3.35%), IPCA Laboratories (up 3.04%), Glenmark Pharmaceuticals (up 2.52%), Aurobindo Pharma (up 2.39%), GlaxoSmithKline Pharmaceuticals (up 2.32%), Cadila Healthcare (up 1.58%), Strides Shasun (up 1.58%), Sun Pharmaceutical Industries (up 1.50%), Divi's Laboratories (up 1.28%) and Piramal Enterprises (up 0.27%), edged higher. Alkem Laboratories fell 0.12%.
Dr. Reddy's Laboratories rose 4.52%. The company announced today that it has entered into a definitive agreement for the sale of its API manufacturing business unit located in Jeedimetla, Hyderabad, to Therapiva Private, an emerging generics pharmaceutical company. This divestiture is being done by way of slump sale (as a going concern) and includes all related fixed assets (land and building), current assets, current liabilities, and its employees.
In a separate announcement today, Dr. Reddy's Laboratories announced receipt of approval for Aspirin and Extended-Release Dipyridamole Capsules, a therapeutic equivalent generic version of Aggrenox (aspirin and extended-release dipyridamole) Capsules in the United States market from the U.S. Food and Drug Administration (USFDA). The Company is working towards launching the product. The Aggrenox brand and generic had U.S. sales of approximately $183 million MAT for the most recent twelve months ending in August 2018 according to IMS Health. Dr. Reddy's Aspirin and Extended-Release Dipyridamole Capsules is available in 25 mg/200 mg strength with 60 count bottle size. Aggrenox is a registered trademark of Boehringer Ingelheim.
Lupin rose 4.15%. The company announced today that it has received tentative approval for its Lurasidone Hydrochloride Tablets, 20 mg, 40 mg, 60 mg, 80 mg and 120 mg from the United States Food and Drug Administration (USFDA). Lurasidone Hydrochloride tablet is the generic version of Sunovion Pharmaceuticals Inc.'s (Sunovion) Latuda Tablets.
On the macro front, the official Wholesale Price Index (WPI) for 'All Commodities' (Base: 2011-12=100) for September 2018 rose by 0.7% to 120.8 (provisional) from 120.0 (provisional) for the previous month. The annual rate of inflation, based on monthly WPI, stood at 5.13% (provisional) for September 2018 (over September 2017) as compared to 4.53% (provisional) for the previous month and 3.14% during the corresponding month of the previous year, Ministry of Commerce & Industry said in a statement during trading hours today, 15 October 2018.
India's industrial production (base year 2011-12=100) increased at moderate pace of 4.3% in August 2018, compared with 6.5% growth recorded in July 2018. The industrial production growth for July 2018 has been revised marginally downwards from 6.6% increase reported provisionally.
The all-India general Consumer Price Index (CPI) inflation rose marginally to 3.77% in September 2018 (new base 2012=100), compared with 3.69% in August 2018. The corresponding provisional inflation rate for rural area was 3.34% and urban area 4.31% in September 2018 as against 3.41% and 3.99% in August 2018. The core CPI inflation declined to 5.82% in September 2018 compared with 5.95% in August 2018.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 74.0225, compared with its close of 73.57 during the previous trading session.
In the global commodities markets, Brent for December 2018 settlement was up 81 cents at $81.24 a barrel. The contract had risen 17 cents, or 0.21% to settle at $80.43 a barrel during the previous trading session.
Overseas, European stocks were mixed, as concerns over Brexit talks, a potential slowdown in the Chinese economy and higher US borrowing costs limited investor appetite.
Asian shares ended lower as worries over US-China trade disputes, a possible slowdown in the Chinese economy and higher US borrowing costs tempered optimism despite a rebound in global equities late last week.
US stocks ended higher on Friday, with equities rebounding from a multi-day rout that slashed 1,400 points from the Dow Jones Industrial Average at its worst and left the Nasdaq on the precipice of a correction.
In the latest economic data, import prices rose 0.5% in September. Separately, an index of consumer sentiment fell to 99 from a previous reading of 100.1.
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