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Pharma shares gain

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Last Updated : Oct 30 2015 | 10:47 AM IST

After alternately swinging between positive and negative zone, key benchmark indices were slightly higher in morning trade. At 10:18 IST, the barometer index, the S&P BSE Sensex, was up 19.85 points or 0.07% at 26,857.99. The 50-unit CNX Nifty was up 7.20 points or 0.09% at 8,118.95.

The market breadth indicating the overall health of the market was positive. On BSE, 996 shares rose and 766 shares fell. A total of 107 shares were unchanged. The BSE Mid-Cap index was up 0.5%, outperforming the Sensex. The BSE Small-Cap index was up 0.03%, underperforming the Sensex.

In overseas markets, Japanese shares led gains in Asian stocks after the Bank of Japan (BOJ) held policy steady. The BOJ kept monetary policy steady and maintained its pledge to increase base money, or cash and deposits at the central bank, at an annual pace of 80 trillion yen ($662 billion) through aggressive asset purchases. US stocks finished slightly lower yesterday, 29 October 2015 succumbing to weaker-than-expected readings on gross domestic product and pending home sales. Economic data released yesterday, 29 October 2015 showed that US gross domestic product increased at a 1.5% annual rate in the third quarter, slowing from a 3.9% rise in the second quarter. Another economic data released yesterday, 29 October 2015 showed that pending home sales fell in September, the second drop in a row.

Pharma shares rose. Divi's Laboratories (up 2.3%), Cadila Healthcare (up 0.11%), Lupin (up 0.1%), Sun Pharmaceutical Industries (up 0.89%), GlaxoSmithKline Pharmaceuticals (up 0.09%) and Wockhardt (up 0.24%), Aurobindo Pharma fell 1.17%.

Dr Reddy's Laboratories rose 2.71%. The company's consolidated net profit rose 26% to Rs 720 crore on 11% growth in revenue to Rs 3990 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours yesterday, 29 October 2015. In constant currency terms, Dr Reddy's Laboratories' revenue grew 14% in Q2 September 2015 over Q2 September 2014. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 31% to Rs 1140 crore in Q2 September 2015 over Q2 September 2014.

Cipla rose 0.79%. Cipla after market hours yesterday, 29 October 2015 said that it has entered into a definitive agreement to sell its entire remaining 25% stake in Biomab Holding Limited, Hong Kong (BHL) to Biomab Brilliant Limited, British Virgin Islands for a total consideration of $25.77 million. BHL is focused on developing Biosimilars for the Chinese market. Cipla said that the decision to divest its entire remaining stake in Hong Kong based BHL was taken with a view to focus on global product development of Biosimilars in the field of cancer, auto-immune diseases, respiratory diseases and diabetes.

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Glenmark Pharmaceuticals gained 3.84%. The company's consolidated net profit rose 19.81% to Rs 197.78 crore on 13.60% increase in revenue to Rs 1909.36 crore in Q2 September 2015 over Q2 September 2014. Consolidated EBITDA (Earnings before interest, taxation, depreciation and amortization) rose 19.85% to Rs 401.77 crore in Q2 September 2015 over Q2 September 2014. The figures are as per International Financial Reporting Standards (IFRS). The result was announced after market hours yesterday, 29 October 2015.

Tyre stocks declined. Apollo Tyres (down 1.86%), CEAT (down 1.62%), JK Tyre & Industries (down 0.85%), MRF (down 0.16%) and TVS Srichakra (down 0.51%) edged lower. Balkrishana Industries (up 1.08%) and Goodyear India (up 0.13%) rose.

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First Published: Oct 30 2015 | 10:27 AM IST

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