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Sensex drops below 27,000

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Last Updated : Jun 08 2016 | 2:47 PM IST

Key benchmark indices slipped into the red in mid-afternoon trade as weakness in European stocks weighed on sentiment. At 14:25 IST, the barometer index, the S&P BSE Sensex was down 24.29 points or 0.09% at 26,985.38. The Nifty 50 index was currently down 6.45 points or 0.08% at 8,255.50. The Sensex slipped below the psychologically important 27,000 mark.

In overseas markets, European market edged lower today, 8 June 2016, retreating after two straight days of gains, as a drop in Austrian bank Erste knocked back financial stocks. Asian stocks were mixed as weak Chinese export data offset a brightening energy sector outlook and an expected delay in interest rate hikes by the US Federal Reserve. Data showed that China's exports fell more than expected in May as global demand remained stubbornly weak, but imports beat forecasts, adding to hopes that the economy may be stabilising. In dollar terms, China's exports fell 4.1% and imports dropped 0.4% from a year earlier.

Separately, China's central bank People's Bank of China said it was keeping its economic growth forecast for 2016 year steady at 6.8% but it now expects exports to contract and fixed asset investment to grow more strongly than previously forecast. Meanwhile, Japan's economy grew faster than initially estimated in the first quarter. Japan's economy expanded at an annualized 1.9% rate in the first quarter of this year, revised up from a preliminary reading of 1.7% growth.

US stocks eked out modest gains yesterday, 7 June 2016, propelled by a sharp rally in the energy sector.

Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,496 shares rose and 972 shares declined. A total of 155 shares were unchanged. The BSE Mid-Cap index was currently up 0.21%. The BSE Small-Cap index was currently up 0.77%. Both these indices outperformed the Sensex.

Sun Pharmaceutical Industries declined 0.04%. The company said during market hours today, 8 June 2016 that as part of its plans to grow the Global Consumer Healthcare business, the company will focus on dermatology as the fourth engine of growth for its OTC business. As part of this growth strategy, the company today, 8 June 2016 announced roll-out of its first dermatology product through the Global Consumer Healthcare business. Branded as Suncros, this is a sunscreen product, offering maximum protection from harmful UV rays till the inner layers of the skin. Currently marketed as a branded prescription product, Sun Pharma now launched select variants to market directly to consumers.

Currently, Sun Pharma's Global Consumer Healthcare business in India markets dietary supplements, analgesics and antacids. The business division's entry into dermatology category offers Sun Pharma's OTC business a larger play into fast moving consumer goods category. Sun Pharma entered the Consumer Healthcare/OTC Business as a result of Ranbaxy's merger into Sun Pharma. It is a high margin, high growth business which the company want to use as a base to create a global consumer entity. The company is evaluating various options to grow the business including foray in new products categories and potential inorganic opportunities.

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As part of its business plans to drive Suncros growth in India, the company will co-promote the brand across both prescription & consumer channel. This first-time unique co-promotion strategy will ensure that the brand reaches out to a larger section of new consumers while ensuring its legacy customers are equally serviced. The company has also signed former Miss India and Bollywood actress Dia Mirza as Suncros' brand ambassador.

Shares of power generation and power distribution companies gained. NTPC (up 0.03%), Torrent Power (up 0.57%), NHPC (up 1.04%), Tata Power Company (up 0.14%), Adani Power (up 0.17%), Power Grid Corporation of India (up 0.93%), Reliance Infrastructure (up 2.16%) and Reliance Power (up 0.58%) gained.

Realty stocks were mixed. DLF (up 1.04%), D B Realty (up 0.61%), Unitech (up 0.01%), Oberoi Realty (up 1.18%) and Godrej Properties (up 1.58%) gained. Housing Development & Infrastructure (HDIL) (down 0.26%), Sobha (down 0.3%), Indiabulls Real Estate (down 0.69%), and NBCC (down 1.54%) declined.

JSW Steel rose 0.88% after the company said its total crude steel production rose 16% to 13.48 lakh tonnes in May 2016 over May 2015. The announcement was made during market hours today, 8 June 2016. JSW Steel's production of flat rolled products rose 7% to 9.3 lakh tonnes in May 2016 over May 2015. Production of long rolled products rose 22% to 2.98 lakh tonnes in May 2016 over May 2015.

Meanwhile, the India Meteorological Department (IMD) today, 8 June 2016, announced the arrival of the monsoon rains in Kerala. That marks the beginning of the 4-month June-September southwest monsoon season in the country. IMD has forecast above normal rains for the 2016 southwest monsoon season. Quantitatively, monsoon season rainfall for the country as a whole is likely to be 106% of the long period average (LPA) with a model error of plus/minus 4%. The quantum of the rainfall and its spatial and temporal distribution are critical for the country's agriculture.

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First Published: Jun 08 2016 | 2:21 PM IST

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