Amid a divergent trend among various index constituents, key benchmark indices provisionally settled near the flat line. The barometer index, the S&P BSE Sensex, fell 9.74 points or 0.04% to 24636.74, as per the provisional closing data. The 50-unit Nifty 50 index fell 0.05 points at 7,485.30, as per the provisional closing data. The two key benchmark indices witnessed intraday volatility. Metal shares edged higher after overnight rally in commodity prices. Index heavyweights Reliance Industries, ITC and HDFC edged higher.
The Sensex fell 137.27 points, or 0.56% at the day's low of 24,509.21 in mid-afternoon trade, its lowest level since 3 March 2016. The barometer index rose 147.14 points, or 0.6% at the day's high of 24,793.62 in morning trade, its highest level since 2 February 2016. The Nifty fell 43.20 points, or 0.58% at the day's low of 7,442.15 in mid-afternoon trade, its lowest level since 3 March 2016. The Nifty rose 41.80 points, or 0.56% at the day's high of 7,527.15 in early trade, its highest level since 2 February 2016.
The market breadth indicating the overall health of the market was negative. On BSE, 1,328 shares fell and 1,319 shares rose. A total of 144 shares were unchanged. The BSE Mid-Cap index provisionally fell 0.25%. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index provisionally rose 0.24%, outperforming the Sensex.
The total turnover on BSE amounted to Rs 4883 crore, higher than turnover of Rs 3249.13 crore registered during the previous trading session.
In overseas stock markets, European stocks fell after disappointing Chinese February trade data. Trading in US index futures indicated that the Dow Jones Industrial Average could fall 108 points at the opening bell today, 8 March 2016. Most Asian stocks fell, stepping back from their recent rally, with weak China trade data weighing on the sentiment. China's February exports fell 25.4% in dollar terms, while imports fell 13.8%. The drop in exports was the largest on-year drop since 2009.
Index heavyweight and housing finance major HDFC rose 1.52% to Rs 1,145.65. The stock hit a high of Rs 1,149 and a low of Rs 1,120 in intraday trade.
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Index heavyweight Reliance Industries (RIL) rose 1.94% to Rs 1,026. The stock hit a high of Rs 1,031 and a low of Rs 1,006 in intraday trade.
Index heavyweight and cigarette major ITC rose 1.17% to Rs 319.70. The stock hit a high of Rs 325 and a low of Rs 315.15 in intraday trade.
Index heavyweight and IT major Infosys edged lower volatile trade. The stock fell 0.39% to Rs 1,166. The stock hit a high of Rs 1,190 and a low of Rs 1,148 in intraday trade.
Metal shares edged higher after overnight rally in commodity prices. Steel Authority of India (up 8.36%), Jindal Steel & Power (up 4.67%), National Aluminium Company (up 4.41%), Hindalco Industries (up 4.35%), Bhushan Steel (up 2.25%), Hindustan Copper (up 2.14%), Hindustan Zinc (up 0.98%) and Tata Steel (up 0.95%), edged higher. JSW Steel was down 0.56%. Vedanta (up 3.61%) and NMDC (up 6.23%) surged as spot iron ore price rose by almost 20% in a single trading session in the global markets yesterday, 7 March 2016. According to reports, the surge in iron ore price was fueled by optimism about the ability of China -- the biggest consumer of iron ore in the world -- to avoid a disastrous hard-landing of its economy. The Chinese government said over the weekend that it will emphasize growth over economic restructuring this year. The news added to rising optimism about Chinese demand. Other commodities, including oil, are also on the upswing.
Shares of pharmaceutical companies were mixed. Wockhardt (up 6.11%), Lupin (up 2.80%), Piramal Enterprises (up 1.84%), Aurobindo Pharma (up 1.08%), Divi's Laboratories (up 0.47%) and Sun Pharmaceutical Industries (up 0.16%), edged higher. Glenmark Pharmaceuticals (down 0.56%), Dr Reddy's Laboratories (down 0.58%), Cadila Healthcare (down 0.84%), Cipla (down 1.09%), GlaxoSmithKline Pharmaceuticals (down 1.35%) and IPCA Laboratories (down 2.27%), edged lower.
Alkem Laboratories rose 1.90% to Rs 1,336 after the company said that its manufacturing plant at Mandva, Gujarat, has successfully obtained the Establishment Inspection Report from the US Food and Drug Administration. The plant manufactures active pharmaceutical ingredients (APIs) and was inspected by US Food and Drug Administration (USFDA) in September 2015. Alkem Laboratories' CEO Prabhat Aggarwal said that this development re-affirms the company's focus towards the United States as its key market and further boosts its ability to enhance its product offering in the market.. The announcement was made on Monday, 7 March 2016, when the stock market was closed on account of Mahashivratri.
Strides Shasun rose 2.56% to Rs 1,060.05 after the company announced that its wholly owned subsidiary Strides Pharma Inc. has entered into an agreement with Moberg Pharma, Sweden and its affiliates to acquire their Jointflex, Fergon and Vanquish brands for a total consideration of $10 million plus inventory value at closing. The acquisition strengthens Strides Shasun's strategy to build a global over the counter (OTC) franchise. The transaction adds $6.1 million of revenue and delivers above company earnings before interest, tax, depreciation and amortization (EBITDA) margins. The transaction is immediately accretive and is expected to close within next four weeks. The announcement was made yesterday, 7 March 2016. The market was shut on that day due to holiday.
Meanwhile, the government has scrapped the controversial proposal to tax withdrawals from the Employees' Provident Fund (EPF). Finance Minister Arun Jaitley announced the decision in Lok Sabha today,8 March 2016. In Union Budget 2016-17 on 29 February 2016, the government had announced that 40% of the total corpus withdrawn at the time of retirement would be tax-exempt, both under EPF and National Pension System. This made the remaining 60% of the EPF's incremental corpus taxable from 2016-17 unless the amount was invested in an annuity product. At present, withdrawal from EPF is entirely tax-free.
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