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Market turns range bound

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Last Updated : Apr 27 2016 | 3:47 PM IST

Key benchmark indices moved in narrow range in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex, was up 22.01 points or 0.08% at 26,029.31. The Nifty 50 index was currently up 10.50 points or 0.13% at 7,973.15. The Sensex was currently trading above the psychologically important 26,000 mark. The barometer index alternately moved above and below that level in intraday trade so far. A rally took the Sensex past the psychologically important 26,000 mark yesterday, 26 April 2016.

The Sensex rose 51.87 points, or 0.2% at the day's high of 26,059.17 in morning trade, its highest level since 21 April 2016. The index fell 122.06 points, or 0.47% at the day's low of 25,885.24 in early trade. The Nifty rose 20.35 points, or 0.26% at the day's high of 7,983 in morning trade, its highest level since 6 November 2015. The index fell 22.10 points, or 0.28% at the day's low of 7,940.55 in early trade.

The market breadth indicating the overall health of the market was positive. On BSE, 1,269 shares rose and 981 shares rose. A total of 147 shares were unchanged. The BSE Mid-Cap index was currently up 0.43%. The BSE Small-Cap index was currently up 0.48%. Both these indices outperformed the Sensex.

In overseas stock markets, Asian stocks edged lower as traders awaited policy decisions from the Federal Reserve and the Bank of Japan. The Bank of Japan's (BOJ) two-day monetary policy meeting began today, 27 April 2016. Speculation is rife that the Japanese central bank will announce further easing of monetary policy. The BOJ in January decided to begin charging 0.1% interest on some bank reserves parked with the institution, in a bid to kick-start the economy and pull it out of two decades of deflation.

US stocks closed with mixed results yesterday 26 April 2016, ahead of a barrage of tech earnings and monetary policy statement from the Federal Reserve. The Federal Reserve's two-day policy meeting concludes today, 27 April 2016. As per market expectations, the Fed is likely to hold rates steady this week. The Fed statement could provide clues on the future interest rate increases.

Telecom stocks were in demand. MTNL (up 6.61%), Tata Teleservices (Maharashtra) (up 4.22%), Reliance Communications (up 1.31%) and Idea Cellular (up 0.77%), edged higher.

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Telecom major Bharti Airtel was up 2.3% to Rs 368.70 ahead of its Q4 results today, 27 April 2016.

Telecom towers firm Bharti Infratel was up 3.46% at Rs 376.40 after consolidated net profit rose 19% to Rs 661.70 crore on 7% growth in revenue to Rs 3161.90 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 26 April 2016. Bharti Infratel's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 9% to Rs 1443.90 crore in Q4 March 2016 over Q4 March 2015. EBITDA margin edged higher to 45.7% in Q4 March 2016, from 45.1% in Q4 March 2015.

Bharti Infratel's board of directors at its meeting held yesterday, 26 April 2016, approved the proposal to buyback equity shares of the company on a proportionate basis through a tender offer. The buyback shall be up to an aggregate amount not exceeding Rs 2000 crore at a maximum price of Rs 450 per share. At maximum buyback price, the buyback translates into approximately 4.44 crore equity shares of the company, representing 2.34% of the total paid up equity share capital of the company.

Most cement stocks edged higher. Ambuja Cements (up 0.71%) and ACC (up 0.69%), edged higher. UltraTech Cement was down 1.93%.

Grasim Industries was up 1.12%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Aurobindo Pharma was down 0.1% at Rs 774.70. The company announced during trading hours today, 27 April 2016, that it has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Famotidine tablets USP, 10 mg and 20 mg (OTC). The drug is used to relieve heartburn associated with acid indigestion and sour stomach. This product is expected to be launched in Q2 September 2016. The approved Abbreviated New Drug Application (ANDA) is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Pepcid AC Tablets, 10 mg and 20 mg, of McNeil Consumer Pharmaceuticals Co. The approved product had an estimated market size of $31 million in the US for the twelve-month period ended February 2016 according to IMS data.

In a separate announcement, the company said that it has received final approval from the USFDA to manufacture and market Oxymorphone Hydrochloride Tablets, 5 mg and 10 mg. The drug is used to help relieve moderate to severe acute pain where the use of an opioid is appropriate. The product is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Opana (oxymorphone hydrochloride) tablets, 5 mg and 10 mg, of Endo Pharmaceuticals, Inc. The approved product has an estimated market size of $55.5 million in the US for the twelve-month period ended February 2016 according to IMS data.

State-run NHPC lost 5.64% to Rs 21.75 as the offer for sale by the Government of India to sell a 11.36% stake in the company through the stock exchanges mechanism began today, 27 April 2016. NHPC's promoter and principal shareholder Government of India (GoI) is selling up to 125.76 crore equity shares, constituting 11.36% of the total paid up equity share capital of the company, through Offer for Sale (OFS) via the stock exchanges mechanism. The floor price for the OFS was fixed at Rs 21.75 per share. The floor price is at a discount of 5.63% to the stock's closing price of Rs 23.05 on BSE yesterday, 26 April 2016.

As at 12:15 IST, the OFS received bids for a total of 156.32 crore shares from non-retail investors as against 100 crore shares on offer for this category of investors.

Bidding for the shares in the OFS by non-retail investors takes place in a single trading session today, 27 April 2016. However, those non-retail investors who have placed their bids today, 27 April 2016 and have chosen to carry forward their bids to tomorrow, 28 April 2016, will be allowed to revise their bids tomorrow, 28 April 2016. Bidding by retail investors will take place in a single trading session tomorrow, 28 April 2016. Retail investors will be allocated offer shares at a discount of 5% to the cut off price. GoI currently holds 85.96% stake in NHPC (as per the shareholding pattern as on 31 March 2016).

Separately, NHPC said that the board of directors of the company at its meeting held yesterday, 26 April 2016, considered and approved the proposal for raising of debt up to Rs 900 crore through issuance of U-Series secured redeemable non cumulative non convertible corporate bonds in the nature of debentures on private placement basis.

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First Published: Apr 27 2016 | 12:19 PM IST

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