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Ranbaxy, Sun Pharma surge

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Last Updated : Jun 28 2014 | 12:00 AM IST

Intraday volatility continued as key benchmark indices pared gains after extending initial gains in morning trade. The barometer index, the S&P BSE Sensex, was up 73.68 points or 0.29%, off close to 70 points from the day's high and up about 40 points from the day's low. The market breadth indicating the overall health of the market was strong. Indian stocks edged higher today, 27 June 2014, as crude oil prices fell and after recent data showed reduction in rain shortfall in the week to 25 June 2014.

Ranbaxy Laboratories and Sun Pharmaceutical Industries surged after Ranbaxy announced that its wholly owned subsidiary Ohm Laboratories, Inc (Ohm) has received first to file approval from the United States Food & Drug Administration (USFDA) with 180-day marketing exclusivity for a generic version of a medicine for treatment of hypertension and heart failure. GAIL (India) fell on reports at least three people have been killed following an explosion at a fuel pipeline of GAIL (India) in Andhra Pradesh.

At 10:20 IST, the S&P BSE Sensex was up 73.68 points or 0.29% to 25,136.35. The index jumped 146.94 points at the day's high of 25,209.61 in early trade. The index rose 33.88 points at the day's low of 25,096.55 in early trade.

The CNX Nifty was up 25 points or 0.33% to 7,518.20. The index hit a high of 7,538.75 in intraday trade. The index hit a low of 7,503.80 in intraday trade.

The market breadth indicating the overall health of the market was strong. On BSE, 1,436 shares gained and 677 shares fell. A total of 82 shares were unchanged.

The BSE Mid-Cap index was up 38.88 points or 0.42% at 9,219.72. The BSE Small-Cap index was up 79.40 points or 0.8% at 10,060.78. Both these indices outperformed the Sensex.

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TCS (up 2.26%), Wipro (up 1.43%) and Dr Reddy's Laboratories (up 1.31%) edged higher from the Sensex pack.

Ranbaxy Laboratories surged after the company announced that its wholly owned subsidiary Ohm Laboratories, Inc (Ohm) has received first to file approval from the United States Food & Drug Administration (USFDA) with 180-day marketing exclusivity for Valsartan 40 mg, 80 mg, 160 mg and 320 mg tablets -- a generic version of a medicine for treatment of hypertension and heart failure. The stock was up 6.26% at Rs 496.55. The Office of Generic Drugs, USFDA, has determined Ohm formulations to be bioequivalent and have the same therapeutic effect as that the branded drug Diovan. The total annual market sales for Diovan in the United States stands at $2.19 billion (IMS-MAT: April 2014).

Sun Pharmaceutical Industries rose 3.6% to Rs 657.40. In April this year, Sun Pharma had acquired Ranbaxy in a $4 billion transaction.

GAIL (India) fell 0.53% to Rs 457.45 on reports at least three people have been killed following an explosion at a fuel pipeline of GAIL (India) in Andhra Pradesh.

Key benchmark indices edged higher amid initial volatility as crude oil prices dropped on Thursday, 26 June 2014. Intraday volatility continued as key benchmark indices pared gains after extending initial gains in morning trade.

In the foreign exchange market, the rupee edged higher against the dollar as crude dropped on Thursday, 26 June 2014. The partially convertible rupee was hovering at 60.13, compared with its close of 60.14/15 on Thursday, 26 June 2014.

Oil prices dropped as militant violence in Iraq has not yet affected oil production from the country. Brent crude oil futures for August delivery were off 2 cents at $113.19 a barrel. The contract lost 79 cents to settle at $113.21 on Thursday, 26 June 2014, its lowest settlement since 16 June 2014.

As crude prices dropped, concerns arising from the impact of high crude oil prices on India's macroeconomic situation eased. India imports about 80% of its crude oil requirements.

Meanwhile, rain shortfall shrank in the third week since the onset of its monsoon, recovering a little after a poor start. Rains were 31% below average in the week to June 25, improving from 45% below average in the second week of the monsoon. India's farm sector accounts for 14% of its nearly $2 trillion economy.

The Reserve Bank of India on Thursday, 26 June 2014, said in its Financial Stability Report (FSR) June 2014 that the return to political stability has provided impetus to the domestic economic outlook and the capital markets reflect the expectations on policy measures to address the adverse growth-inflation dynamics and saving-investment balance as also efficient implementation of policies and programmes. Further progress on fiscal consolidation, a predictable tax and policy regime, and low and stable inflation rates will be the key anchors in promoting India's macroeconomic as well as financial stability, RBI Governor Raghuram Rajan said in his foreword to the FSR.

Asian stocks edged lower on Friday, 27 June 2014, after a Federal Reserve official said the US may raise interest rates by March. Key benchmark indices in Japan, China, Indonesia, Singapore, Hong Kong, South Korea and Taiwan fell by 0.08% to 1.56%.

Trading in US index futures indicated that the Dow could fall 26 points at the opening bell on Friday, 27 June 2014. US stocks slipped for the third time in four days on Thursday, 26 June 2014, after James Bullard, president of the Federal Reserve Bank of St. Louis, suggested that higher interest rates may happen sooner than people thought. Economic data showing that consumer spending rose less than forecast also led to losses in US stocks. Bullard, speaking in an interview to a business channel, predicted the central bank's first interest-rate rise will happen in the first quarter of next year.

Consumer spending, which accounts for about 70% of the economy, climbed 0.2% in May after being little changed in April, US Commerce Department figures showed.

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First Published: Jun 27 2014 | 10:15 AM IST

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