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Pharma stocks in demand

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Last Updated : Jun 09 2017 | 12:01 AM IST

Key indices were trading near the flat with tiny losses in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex was down 3.27 points or 0.01% at 31,268.01. The Nifty 50 index declined 0.85 points or 0.01% at 9,660. Indices hovered in a narrow range so far as investors maintained caution ahead of key global events of elections in the UK and the European Central Bank's monetary policy review.

Indices edged higher in early trade tracking steady Asian stocks. Stocks soon slipped into the red and largely languished in negative zone near the flat line later during the session.

Among other indices, the S&P BSE Mid-Cap index rose 0.36%. The S&P BSE Small-Cap index advanced 0.38%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,313 shares rose and 1,232 shares declined. A total of 157 shares were unchanged.

FMCG stocks were mixed. Tata Global Beverages (down 0.39%), Nestle India (down 0.16%), Britannia Industries (down 0.19%), Hindustan Unilever (HUL) (down 0.58%), Bajaj Corp (down 0.19%) and Dabur India (down 0.6%) declined. Marico (up 0.31%), Jyothy Laboratories (up 1.6%), Procter & Gamble Hygiene and Health Care (up 0.19%), Colgate Palmolive India (up 1.06%), GlaxoSmithkline Consumer Healthcare (up 0.01%), and Godrej Consumer Products (up 1.35%) gained.

Pharma stocks were in demand on bargain hunting after the recent losses. Sun Pharmaceutical Industries (up 4.03%), Aurobindo Pharma (up 1.83%), Cipla (up 2.08%), Lupin (up 1.82%), Wockhardt (up 3.25%), Dr Reddy's Laboratories (up 4.29%), Divi's Laboratories (up 1.5%), Glenmark Pharmaceuticals (up 1.18%) and Cadila Healthcare (up 0.29%) gained.

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The S&P BSE Healthcare rose 2.04%, outperforming the Sensex. The index gained for the second day in a row.

Housing Development & Infrastructure lost 3.76% on reports that the company has failed to repay loan worth Rs 144 crore to Central Bank of India.

As per reports, Central Bank of India has taken symbolic possession of HDIL's property in Kurla West. The property is a 10-acre portion of all pieces and parcels of land and premises admeasuring 2.13 lakh square metres. The bank is carrying out the procedures required under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, reports indicated. The bank had issued a public notice on 1 June 2017, asking HDIL to pay the loan amount, reports added.

Overseas, European stocks edge higher as UK voting began and European Central Bank's (ECB) monetary policy takes center stage. Asian stocks were mixed ahead of a number of news events with global implications.

German industrial production growth beat forecasts in April as manufacturing output rose for the fourth straight month, underpinning expectations of robust economic growth in the second quarter. Industrial output in Europe's largest economy increased by 0.8% from March, adjusted for seasonal swings and calendar effects.

The voting for the general elections in the UK began. The ECB will hold its latest meeting later in the day and James Comey, the former director of the Federal Bureau of Investigation, will testify on Capitol Hill.

Among global macro data, China's May exports rose 8.7% from a year earlier, while imports expanded 14.8%, both beating expectations, official data showed. That left the country with a trade surplus of $40.81 billion for the month, the General Administration of Customs said.

Japan's economy grew at a slower pace than initially estimated in the first quarter. The nation's gross domestic product, the broadest measure of economic activity, grew at an annualized pace of 1.0% from the previous three months, according to government data.

In the US, banks and other financial companies led stocks slightly higher yesterday, 7 June 2017, snapping a two-day losing streak for the market.

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First Published: Jun 08 2017 | 2:18 PM IST

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