Key benchmark indices surged and hit fresh intraday high in late trade as European stocks and US index futures rose ahead of the outcome of the two-day meeting of the Federal Open Market Committee which concludes today, 18 September 2013. The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 17 September 2013. The S&P BSE Sensex moved past the psychological 20,000 mark in late trade. The Sensex was provisionally up 197.81 points or 1%, up about 225 points from the day's low and off close to 10 points from the day's high. The market breadth, indicating the overall health of the market turned positive from negative in late trade.
Bank stocks edged higher. Shares of power generation and distribution heavyweights rose. Pharma stocks gained for the second straight day. Index heavyweights Reliance Industries (RIL) and ITC, both, moved higher.
The Sensex gained for the third straight day today, 18 September 2013.
The market edged higher amid initial volatility. Key benchmark indices pared initial gains and swung alternately between gains and losses near the flat line in morning trade. The market hovered in green in early afternoon trade. The market was range bound in afternoon trade. The Sensex retained positive zone in mid-afternoon trade. The Sensex surged and hit fresh intraday high in late trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 17 September 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 318.05 crore on Tuesday, 17 September 2013, as per provisional data from the stock exchanges.
As per provisional figures, the S&P BSE Sensex was up 197.81 points or 1% to 20,001.84. The index surged 209.30 points at the day's high of 20,013.33 in late trade, its highest level since 16 September 2013. The index fell 28.74 points at the day's low of 19,775.29 in morning trade.
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The CNX Nifty was up 59.70 points or 1.02% to 5,909.90, as per provisional figures. The index hit a high of 5,916.90 in intraday trade, its highest level since 16 September 2013. The index hit a low of 5,840.20 in intraday trade.
The total turnover on BSE amounted to Rs 1459 crore, higher than Rs 1452.79 crore on Tuesday, 17 September 2013.
The market breadth, indicating the overall health of the market, turned positive from negative in late trade. On BSE, 1,223 shares rose and 1,111 shares fell. A total of 169 shares were unchanged.
Among the 30-share Sensex pack, 23 stocks rose and rest of them fell. L&T (up 2.68%), Maruti Suzuki India (up 1.54%) and Hindustan Unilever (up 2.65%), edged higher.
Pharma stocks gained for the second straight day. Cipla rose 0.98%.
Dr Reddy's Laboratories rose 2.64%, with the stock extending Tuesday's gain triggered by the company getting USFDA nod for Azacitidine for injection 100 mg/vial, a bioequivalent generic version of VIDAZA (azacitidine for injection). The launch of product in the US market is planned in the near term, the company said during trading hours on Tuesday, 17 September 2013. The VIDAZA brand had US sales of approximately $378.5 million for the twelve months ended July 2013, according to IMS Health data.
Ranbaxy Laboratories gained 0.91% to Rs 333, with the stock gaining for the second day in a row. The company said during market hours on Tuesday, 17 September 2013, that during late hours on Monday, 16 September 2013, the company received communication from the US Food and Drug Administration (USFDA) that the regulator had imposed an import alert on the company's Mohali facility. The USFDA also advised that the Mohali facility will be subject to certain terms of the Consent Decree signed in January 2012. Ranbaxy said it will review the details and will continue to fully cooperate with the USFDA and take all necessary steps to resolve the concerns at the earliest.
The USFDA had conducted inspections at Ranbaxy's Mohali facility in 2012, resulting in certain observations. The company believes that it has made further improvements at its Mohali facility since the last inspection in 2012, and remains committed to adressing all concerns of the USFDA. Ranbaxy is hopeful of an early resolution these concerns, the company said in a statement.
Ranbaxy remains fully committed to upholding the highest standards that patients, prescribers, regulators and all other stakeholders expect from the company. Ranbaxy stays firmly committed to its philosophy of 'Quality and Patients First,' it said in a statement.
Shares of Ranbaxy had tumbled 30.27% in a single trading session to settle at Rs 318.85 on Monday, 16 September 2013, after the USFDA issued an import alert against company's Mohali plant.
Strides Arcolab jumped 3.54% to Rs 877 after the company said it has received USFDA approval for Beltapharm's facility at Milan in Italy. This state-of-the-art, EU and TGA (Australia) approved facility manufactures liquids, semi-solids, ointments and creams, Strides Arcolab said. The company said it is expecting its first approval of a niche semisolid product by Q1 2014.
Strides is developing a portfolio of liquids and semi-solids products for the US and EU markets and it currently has over 12 products at various stages of development/approvals. Strides already sells semi-solids in the UK market.
Sun Pharmaceutical Industries gained 1.46%.
But, Lupin fell 0.61%. The company on Monday 16 September 2013 it has received final approval for its Zolpidem Tartrate Extended release tablets USP, 6.25 mg and 12.5 mg from the United States Food and Drugs Administration (FDA) to market a generic version of Sanofi Aventis, U.S, LLC's (Sanofi) Ambien CR Extended release tablets, 6.25 mg and 12.5 mg. Lupin's wholly owned US subsidiary Lupin Pharmaceuticals Inc. (LPI) shall commence marketing the product shortly, the company said. Lupin's Zolpidem CR tablets 6.25 mg & 12.5 mg is the AB rated generic equivalent of Sanofi's Ambien CR Extended? release tablets, 6.25 mg and 12.5 mg and is indicated for the treatment of insomnia characterized by difficulties with sleep onset and/or sleep maintenance. Sanofi's Ambien CR Extended release tablets had annual US sales of approximately $366 million (IMS MAT Mar 2013).
Index heavyweight and cigarette major ITC rose 1.79% to Rs 344.80. The stock hit a high of Rs 345 and low of Rs 339.30. ITC's hospitality unit ITC Hotels on Monday, 16 September 2013, said it has tied up with RP Group Hotels & Resorts to manage 5 hotels in India and Dubai, under ITC Hotels' 5-star 'WelcomHotel' brand and the group's mid-market to upscale 'Fortune' brand. The tie-up has been firmed up through a Memorandum of Understanding between ITC Hotels and RP Groups Hotels & Resorts. While the two WelcomHotels are already under a management contract and will be flagged off immediately, the three Fortune hotels are a part of the signed MOU and will be launched subsequently, ITC Hotels said in a statement. As part of its expansion drive, ITC Hotels proposes to add several managed hotels to its brand portfolio, it said. On the anvil are an ITC super-premium luxury hotel in Mahabalipuram, a WelcomHotel in Jodhpur, Patna and Chandigarh and more than 30 hotels under the Fortune brand.
Index heavyweight Reliance Industries (RIL) rose 1.55% to Rs 871.40. The stock hit a high of Rs 873.30 and low of Rs 857.
Infosys declined 0.19%. The company during market hours today, 18 September 2013, announced the launch of Finacle 11E, an advanced universal banking solution that simplifies banking transformation.
Bhel dropped 4.43%. The stock was the biggest loser from the Sensex pack.
Shares of power generation and distribution heavyweights rose. NTPC gained 3.67%. Tata Power Company rose 3.57%.
Bank stocks gained. Among PSU bank stocks, State Bank of India, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank gained 2.27% to 3.32%.
Among private sector banks, ICICI Bank (up 1.11%), HDFC Bank (up 1.74%), and Axis Bank (up 2.72%), gained.
Private sector bank Yes Bank rose 5.8%, with the stock extending Tuesday's gain. The bank on Tuesday, 17 September 2013, said it has successfully closed equivalent to $255 million by way of dual currency, multi-tenor syndicated loan facility which will be utilized for general corporate purposes and trade finance. The facility has a maturity of 1 and 2 years with majority commitments coming in the 2 year tenure bucket. The loan has been widely distributed with commitments from 11 banks representing 8 countries across US, Europe, Middle East and Australia, Yes Bank said.
The recent RBI guidelines on offering swap facility to banks for the foreign currency borrowings at 100 basis points below the market rate will further make the landed rupee cost of these funds extremely competitive vis-vis rupee funds of equivalent maturity, Yes Bank said.
Sobha Developers rose 2.19% after credit rating company, ICRA, upgraded the long-term rating of the company from ICRA BBB+ to ICRA A-. Sobha Developers made the announcement during trading hours today, 18 September 2013. Sobha Developers said that ICRA upgraded the long-term rating of the company's fund-based working capital limits of Rs 365 crore, term loans of Rs 648 crore and non fund-based working capital limits of Rs 125 crore to 'ICRA A- (Stable)' from 'ICRA BBB+ (Positive)'.
Gujarat State Fertilizers & Chemicals rose 4.11% to Rs 51.95. A block deal of 12.11 lakh shares executed in the counter at Rs 52.05 per share on BSE at 14:07 IST.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 63.21, stronger than its close of 63.37/38 on Tuesday, 17 September 2013.
The Reserve Bank of India (RBI) cracked down on offshore foreign exchange trading by Indians through online trading websites, asking banks to report any such remittances to the regulator. In a circular issued late on Tuesday, the Reserve Bank of India (RBI) asked banks to advise customers not to undertake forex trading on foreign websites that offer currency contracts by accepting margins through credit card and online money transfer mechanisms. The RBI also asked banks to close the credit card or online bank account of a customer that is found to be in violation of the rule.
Foreign direct investment inflows into India rose an annual 12.9% to $1.66 billion in July 2013, the government said in statement released late on Tuesday, the highest monthly inflow for three months.
At its upcoming mid-quarter monetary policy review on Friday, 20 September 2013, the Reserve Bank of India will have to decide whether to give in to industry demands and lower interest rates in order to boost slowing economic growth, or leave interest rates unchanged for the third straight policy review as it guards against risks of a fresh rise in inflationary pressures.
European stock markets edged higher on Wednesday, 18 September 2013, as investors awaited the latest policy decision from the US Federal Reserve, expected to announce the beginning of tapering of its asset purchases. Key benchmark indices in UK, France and Germany were up 0.2% to 0.5%.
The Bank of England's Monetary Policy Committee earlier in September voted unanimously to keep both interest rates and the asset-purchase program unchanged, according to minutes of the meeting published Wednesday. The interest rate was kept at a record low 0.5%, while the quantitative-easing program stayed at 375 billion pounds ($596.48 billion).
Asian stocks were mixed on Wednesday, 18 September 2013, before the Federal Reserve decides later today whether to slow its $85 billion of monthly asset purchases. Key benchmark indices in China, Japan and Singapore rose by 0.29% to 1.35%. Key benchmark indices in Hong Kong, Taiwan and Indonesia shed by 0.27% to 1.2%. South Korean stock market was closed for a holiday.
Trading in US index futures indicated that the Dow could gain 20 points at the opening bell on Wednesday, 18 September 2013. US stocks rose slightly on Tuesday on expectations the Federal Reserve will make a modest cut in its stimulative bond buying and keep interest rates extraordinarily low. A report in the US on Tuesday showed the cost of living rose less than forecast in August, with the consumer-price index increasing 0.1%, the least in three months.
Investors across the globe are eyeing the two-day policy meeting of the Federal Open Market Committee (FOMC), considered by many to provide an indication on the timing and size of the Fed's cutbacks in its bond-purchase program. The FOMC's two-day policy meeting on interest rates in the United States ends today, 18 September 2013. The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
Investors are also eyeing Fed's forward guidance on policy. The Fed is due to offer its rate expectations for 2016, and it has previously said it wanted to see the US unemployment fall to 6.5% from its current 7.3% before it raises the benchmark fed funds rate target from its present 0-to-0.25% range.
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