The BSE Sensex hit fresh intraday high, while the Nifty 50 index held firm at higher level in mid-morning trade. At 11:17 IST, the barometer index, the S&P BSE Sensex, was up 239.25 points or 0.77% at 31,452.84. The Nifty 50 index was up 74.55 points or 0.77% at 9,785.35. Positive cues from from Asian market boosted investors' sentiment.
The Sensex rose 259.33 points, or 0.83% at the day's high of 31,472.92 in mid-morning trade, its highest level since 10 August 2017. The index rose 85.31 points, or 0.27% at the day's low of 31,298.90 in early trade. The Nifty rose 82.75 points, or 0.85% at the day's high of 9,793.55 in morning trade, its highest level since 10 August 2017. The index rose 41.30 points, or 0.43% at the day's low of 9,752.10 in early trade.
Among secondary barometers, the BSE Mid-Cap index was up 1.89%. The BSE Small-Cap index was up 2.09%. Both these indices outperformed the Sensex.
The broad market depicted strength. There were more than three gainers against every loser on BSE. 1,747 shares rose and 490 shares fell. A total of 71 shares were unchanged.
Most IT shares rose. Hexaware Technologies (up 3.43%), Oracle Financial Services Software (up 2.56%), MphasiS (up 1.39%), MindTree (up 1.28%), Persistent Systems (up 0.88%), TCS (up 0.16%) and HCL Technologies (up 0.11%), edged higher. Tech Mahindra (down 0.01%), Wipro (down 0.28%) and Infosys (down 0.58%), edged lower.
Most pharmaceutical shares rose. Cipla (up 5.58%), Strides Shasun (up 2.49%), Piramal Enterprises (up 1.85%), IPCA Laboratories (up 1.76%), Aurobindo Pharma (up 1.59%), Wockhardt (up 1.04%), Glenmark Pharmaceuticals (up 0.85%), Lupin (up 0.79%), Cadila Healthcare (up 0.60%), GlaxoSmithKline Pharmaceuticals (up 0.52%) and Divi's Laboratories (up 0.41%), edged higher. Alkem Laboratories (down 0.12%) and Dr Reddy's Laboratories (down 0.94%), edged lower.
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Drug major Sun Pharmaceutical Industries dropped 0.22% to Rs 450.30 after consolidated adjusted net profit excluding the Modafinil settlement fell 74% at Rs 526 crore on 23% decline in sales to Rs 6167 crore in Q1 June 2017 over Q1 June 2016. The announcement was made after market hours on Friday, 11 August 2017.
Net profit for Q1 June 2017 was adversely impacted by settlements with certain plaintiffs related to the Modafinil antitrust litigation in the US, with the settlement amounting to Rs 950 crore. Net profit for Q1 June 2016 included the benefit of the 180-day exclusivity for Imatinib which expired in July-2016.
Dilip Shanghvi, Managing Director of the company said that Q1 performance was not good and not in line with the past performance due to the combined impact of increasing investments in global specialty business, temporary disruption in India business due to GST implementation, a challenging US generic pricing environment and the Modafinil settlement. The company expects performance to gradually improve in the second half of this year.
Separately, company said that all the necessary formalities for completion of acquisition of 2.03 lakh series A preferred stock-equivalent to 15.91% fully diluted equity stake on conversion, of Krystal Biotech Inc., have now been concluded. On 8 August 2017, the company had disclosed regarding agreement of said acquisition of Krystal Biotech Inc., United States of America.
Bank of Baroda dropped 0.53% to Rs 141.80 after net profit fell 52% to Rs 203.39 crore on 1.9% rise in total income to Rs 12103.86 crore in Q1 June 2017 over Q1 June 2016. The announcement was made after market hours on Friday, 11 August 2017.
Gross non-performing assets (NPAs) rose to Rs 46172.77 crore as on 30 June 2017 as against Rs 42718.70 crore as on 31 March 2017 and Rs 42991.68 crore as on 30 June 2016. The ratio of gross NPAs to gross advances rose to 11.4% as on 30 June 2017 as against 10.46% as on 31 March 2017 and 11.15% as on 30 June 2016. The ratio of net NPAs to net advances rose to 5.17% as on 30 June 2017 as against 4.72% as on 31 March 2017 and 5.73% as on 30 June 2016. Provisions and contingencies rose 18.16% to Rs 2368.05 crore in Q1 June 2017 over Q1 June 2016. The Provision Coverage Ratio (PCR) stood at 66.28% as at 30 June 2017.
Separately, Bank of Baroda said that it allotted 8,500 Basel III compliant unsecured, perpetual bonds carrying coupon of 8.65% and face value of Rs 10 lakh each worth Rs 850 crore to ten allottees on 11 August 2017.
Voltamp Transformers rose 2.96% after net profit rose 30.7% to Rs 14.50 crore on 13.3% increase in net sales to Rs 130.45 crore in Q1 June 2017 over Q1 June 2016. The result was announced on Saturday, 12 August 2017.
On the macro front, India's industrial production in June 2017 contracted 0.1%, the lowest reading since June 2013, driven primarily by a 6.8% contraction in capital goods. Data for growth in the Index of Industrial Production (IIP) for May 2017 was revised to 2.8%. The fall in capital goods production was the most drastic contraction since September 2016.
Overseas, Asian stocks were trading higher after three losing sessions, tracking a firm closing on the Wall Street.
Gains among technology companies helped snap a three-day losing streak for US stocks on Friday, 11 August 2017.
The Dow Jones Industrial Average rose 14.31 points to close at 21,858.32. The S&P 500 gained 3.11 points, or 0.1%, to end at 2,441.32. The Nasdaq Composite Index climbed 39.68 points, or 0.6%, to close at 6,256.56. Investors bet on slower US rate hikes following weaker-than-expected consumer price data. But gains were muted by increasingly aggressive exchanges between Washington and Pyongyang.
Geopolitical risks were expected to remain a key theme for the global markets in the near term, as North Korea celebrates Liberation Day on Tuesday, 15 August 2017, to mark the end of Japanese rule. Investors also braced for tensions ahead of 21 August 2017, when an annual joint US-South Korean military exercise is due to begin.
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