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Pharma stocks gain across the board

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Last Updated : Dec 17 2013 | 11:56 PM IST

Key benchmark indices hovered in positive zone in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 81.97 points or 0.4%, off 42.54 points from the day's high and up 9.95 points from the day's low. The market breadth, indicating the overall health of the market, was strong. Gains in Asian stocks aided upmove on the domestic bourses today, 17 December 2013. In the foreign exchange market, the rupee edged lower against the dollar as investors bet improving US economic data may usher in a reduction in monetary stimulus for the US economy from the US Federal Reserve.

Asian stocks edged higher on Tuesday, 17 December 2013, after reports on Monday, 16 December 2013, showed manufacturing growth accelerated in Europe and the US.

Pharma stocks gained across the board on renewed buying. Aurobindo Pharma hit record high, with the extending recent gains triggered by the company receiving the final approval from USFDA to manufacture and market a generic medicine in the United States. GlaxoSmithkline Pharmaceuticals hit record high, with the stock extending Monday's surge after GlaxoSmithKline Pte along with GlaxoSmithkline plc on Monday, 16 December 2013, announced a voluntary open offer to the public shareholders of GlaxoSmithkline Pharmaceuticals to acquire 2.06 crore equity shares, representing 24.33% stake of the total voting share capital of the company, at Rs 3,100 per share. Glenmark Pharmaceuticals rose after two bulk deals were executed on the scrip on BSE today, 17 December 2013. Bharti Airtel gained on reports the company is close to selling its operations in Sri Lanka to UAE-based telecom company Etisalat.

Key benchmark indices edged higher in early trade on firm Asian stocks. A bout of volatility was witnessed as key benchmark indices trimmed initial gains in morning trade. Key benchmark indices hovered in positive zone in mid-morning trade.

Foreign institutional investors (FIIs) bought shares worth a net Rs 159.55 crore on Monday, 16 December 2013, as per provisional data from the stock exchanges.

At 11:16 IST, the S&P BSE Sensex was up 81.97 points or 0.4% to 20,741.49. The index jumped 124.51 points at the day's high of 20,784.03 in early trade, its highest level since 13 December 2013. The index rose 72.02 points at the day's low of 20,731.54 in morning trade.

The CNX Nifty was up 23.80 points or 0.39% to 6,178.50. The index hit a high of 6,190.55 in intraday trade, its highest level since 13 December 2013. The index hit a low of 6,174.75 in intraday trade.

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The market breadth, indicating the overall health of the market, was strong. On BSE, 1,069 shares gained and 589 shares fell. A total of 121 shares were unchanged.

The total turnover on BSE amounted to Rs 864 crore by 11:20 IST, compared with Rs 642 crore by 10:20 IST.

Among the 30-share Sensex pack, 24 stocks gained and rest of them declined.

Bharti Airtel gained 3.68% to Rs 325.60, with the stock extending intraday gain. As per reports, Bharti Airtel is close to selling its operations in Sri Lanka to UAE-based telecom company Etisalat. Bharti Airtel and Etisalat have been negotiating for over five months now and have agreed on the broad characteristics of the deal.

Bharti Airtel had announced the launch of its Sri Lanka operations in 2009 but the company has not been able to make inroads in terms of market share, with just under two million users.

Bharti Airtel Lanka, a subsidiary of Bharti Airtel, commenced commercial operations of services in Sri Lanka on 12 January 2009, as the fifth entrant in a highly saturated market, and was the fastest operator to reach 1 million customers in Sri Lanka. As one of Sri Lanka's largest foreign investors, Airtel has invested over $300 million in Sri Lanka and has achieved island-wide coverage in under two years which has enabled it to emerge as Sri Lanka's fastest expanding network.

Pharma stocks gained across the board on renewed buying. Cipla (up 2.73%), Dr Reddy's Laboratories (up 1.44%), Ranbaxy Laboratories (up 5.38%), Wockhardt (up 11.91%), Cadila Healthcare (up 0.14%), Lupin (up 1.15%) and Sun Pharmaceutical Industries (up 1.7%) advanced.

Aurobindo Pharma rose 2.03% to Rs 356.05, after hitting a record high of Rs 360.90 in intraday trade. The stock extended recent gains triggered by the company receiving the final approval from USFDA to manufacture and market a generic medicine in the United States.

Aurobindo Pharma during trading hours on Friday, 13 December 2013 said it has received the final approval from the US Food & Drug Administration (USFDA) to manufacture and market Duloxetine Hydrochloride Delayed-Release Capsules 20mg (base), 30mg (base) and 60mg (base) which was earlier tentatively approved.

Duloxetine Hydrochloride Delayed-Release Capsules 20mg (base), 30mg (base) and 60mg (base) are the generic equivalent of Eli Lilly & Company's Cymbalta Delayed-Release Capsules 20mg (base), 30mg (base) and 60mg (base). Duloxetine Hydrochloride Delayed-Release Capsules are indicated for the treatment of for the treatment of major depressive disorder (MDD) and falls under the Neurological (CNS) therapeutic category. According to IMS data, the market size of the product is estimated to be $5.4 billion for the twelve months ended September 2013.

Aurobindo now has a total of 188 abbreviated new drug application (ANDA) approvals (163 final approvals including 7 from Aurolife Pharma LLC and 25 tentative approvals) from USFDA.

GlaxoSmithkline Pharmaceuticals rose 0.47% to Rs 2,941.05 after striking a record high of Rs 2,960 in intraday trade. The stock had jumped 18.6% to Rs 2,927.40 on Monday, 16 December 2013. GlaxoSmithKline Pte along with GlaxoSmithkline plc on Monday, 16 December 2013, announced a voluntary open offer to the public shareholders of GlaxoSmithkline Pharmaceuticals to acquire 2.06 crore equity shares, representing 24.33% stake of the total voting share capital of the company, at Rs 3,100 per share.

GlaxoSmithkline plc currently holds 50.67% stake in GlaxoSmithkline Pharmaceuticals. Its stake will rise to 75% if it gets the entire 2.06 crore equity shares through the voluntary open offer. The hike in stake will cost the overseas parent about Rs 6389 crore.

Glenmark Pharmaceuticals rose 0.72% to Rs 523.95. A bulk deal of 4.50 lakh shares was executed on the scrip at Rs 518.80 per share at 10:06 IST on BSE today, 17 December 2013. Another bulk deal of 16.99 lakh shares was executed on the scrip at Rs 519 per share at 10:07 IST on BSE today, 17 December 2013.

The Central Board of Direct Taxes (CBDT) has extended the time limit for payment of the December installment of Advance Tax by two days from 15 December 2013 to 17 December 2013. This was done in view of the fact that 15 December 2013 was a Sunday.

In the foreign exchange market, the rupee edged lower against the dollar as investors bet improving US economic data may usher in a reduction in monetary stimulus for the US economy from the US Federal Reserve. The partially convertible rupee was hovering at 61.9475, compared with its close of 61.73/74 on Monday, 16 December 2013.

The Reserve Bank of India (RBI) is widely expected to increase in main lending rate viz. the repo rate by 25 basis points to 8% from current 7.75% after a mid-quarter monetary policy review tomorrow, 18 December 2013, to rein in inflation after recent data showed that both consumer prices and wholesale prices accelerated last month.

Asian stocks edged higher on Tuesday, 17 December 2013, after reports on Monday, 16 December 2013, showed manufacturing growth accelerated in Europe and the US. Key benchmark indices in Taiwan, Hong Kong, Singapore, Japan, Indonesia and South Korea rose by 0.09% to 1.21%. China's Shanghai Composite fell 0.4%.

The Bank of Japan (BoJ), which buys more than 7 trillion yen ($67.6 billion) of Japanese Government Bonds (JGBs) every month in its bid to stoke inflation, holds a two-day monetary policy meeting on 19 and 20 December 2013.

Trading in US index futures indicated that the Dow could advance 13 points at the opening bell on Tuesday, 17 December 2013. US stocks surged on Monday as a flurry of economic data indicated solid improvements in business activity across the country. The Empire State Manufacturing Index rebounded in December after a slump in November. Markit's US Purchasing Managers' Manufacturing index rose further into expansion at 54.4. Industrial production jumped 1.1% in November, its biggest one-month gain in a year, and surpassed its pre-recession peak, versus a 0.1% fall the month before.

The Federal Open Market Committee's (FOMC) two-day policy meeting on interest rates in the United States begins today, 17 December 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.

Euro-area manufacturing reached a 31-month high in December, led by Germany, a survey from London-based Markit Economics showed on Monday, 16 December 2013.

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First Published: Dec 17 2013 | 11:19 AM IST

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