A sudden surge in Chinese stocks helped send key equity benchmark indices in India surging in early afternoon trade. At 12:19 IST, the barometer index, the S&P BSE Sensex, was up 262.68 points or 1.02% at 25,968.61. The 50-unit CNX Nifty was up 71.85 points or 0.92% at 7,900.95. The Sensex hit its highest level in more than two weeks when it jumped 264.27 points at the day's high of 25,970.20 in intraday trade. The Nifty also hit its highest level in more than two weeks when it rose 76.75 points at the day's high of 7,905.85 in intraday trade.
In overseas markets, Chinese stocks surged in volatile trade. The Shanghai Composite was currently up 5.07%. US stocks witnessed broad-based gains yesterday, 15 September 2015, on speculation that the Federal Reserve will hold off on raising interest rates at its two-day policy meeting which concludes on Thursday, 17 September 2015. Amid a recovery in the US economy, the Federal Reserve policy makers are debating the timing of first interest rate increase in the US in nearly a decade.
Closer home, equity markets shrugged off weak exports data. Merchandise exports fell 20.66% to $21.26 billion in August 2015 over August 2014. Non-oil imports rose 7.01% to $26.38 billion whereas oil imports plunged 42.59% at $7.35 billion in August 2015 over August 2014. The trade deficit rose sharply to $12.47 billion in August 2015 from $10.66 billion in August 2014.
The market breadth indicating the overall health of the market was positive. On BSE, 1,228 shares rose and 1,049 shares declined. A total of 116 shares were unchanged. The BSE Mid-Cap index was up 0.32%. The BSE Small-Cap index was up 0.01%. Both these indices underperformed the Sensex.
Pharma stocks were mostly higher. Wockhardt (up 1.72%), Divi's Laboratories (up 1.42%), Cipla (up 1.09%), Lupin (up 1.09%) and Glenmark Pharmaceuticals (up 1.08%) edged higher. Strides Arcolab (down 0.7%), Ipca Laboratories (down 0.73%), GlaxoSmithkline Pharmaceuticals (down 0.37%) and Dr Reddy's Laboratories (down 0.15%) edged lower.
Sun Pharmaceutical Industries (Sun Pharma) rose 2.09% at Rs 884.80 after the company before market hours today, 16 September 2015, announced that one of its subsidiary has entered into an agreement and plan of merger with InSite Vision Inc. (InSite Vision) under which a Sun Pharma subsidiary has offered to acquire InSite Vision. Under the terms of the agreement and plan of merger, an indirect wholly owned subsidiary of Sun Pharma will commence a tender offer for all of the issued and outstanding common stock of InSite Vision at a price of $0.35 per share in cash, a 30% premium to the implied price per share under the terminated 'Amended and Restated Agreement and Plan of Merger' between InSite Vision and a competing bidder for InSite Vision's common stock based on the stock price of the competing bidder as of 11 September 2015. The transaction has a total equity value of about $48 million on fully diluted basis plus related debt and other transaction costs assuming all shares of InSite Vision are tendered in the offer.
Insite Vision focuses on developing new specialty ophthalmic products, including three late stage programs. Sun Pharma is in the process of establishing a branded ophthalmic business in the US. This proposed acquistion of InSite Vision, coupled with the recent in-licensing of Xelpros (Latanoprost BAK-free eye drops) in June 2015, are steps in this direction, Sun Pharma said in a statement. These deals give Sun Pharma access to four late stage branded ophthalmic products in the US, the company said in a statement.
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For the six months period ended 30 June 2015, InSite Vision recorded revenue of $3.8 million, loss of $6.4 million at the EBITDA level and a net loss of $7.5 million.
Shares of power generation and power distribution firms gained. JSW Energy (up 2.67%), Adani Power (up 1.97%), Reliance Power (up 1.28%), Torrent Power (up 0.86%), Tata Power (up 1.06%), Jaiprakash Power Ventures (up 0.34%), NTPC (up 0.08%) and Power Grid Corporation of India (up 0.16%) edged higher. Reliance Infrastructure (down 1.19%) and GVK Power & Infrastructure (down 0.15%) edged lower.
The government has announced the revival of 13 stranded gas based power generation plants with an installed capacity of 8,262.08 megawatts which have successfully bid through a transparent and competitive reverse e-auction process. According to a government statement, the successful bidders include power plants in the Southern region. The government, however, did not announce the names of the successful bidders.
Shares of NHPC were unchanged at Rs 16.20.
Yes Bank rose 2.42% at Rs 747 on reports that the bank's advance tax payment rose 30% to Rs 310 crore in Q2 September 2015 over Q2 September 2014.
Shares of Sadbhav Infrastructure Project were trading at Rs 108, a premium of 4.85% compared with the initial public offer (IPO) price of Rs 103. The stock debuted at Rs 110.75 on BSE, a premium of 7.52% over IPO price. The stock hit a high of Rs 112.25 and a low of Rs 106.20 so far during the day. The company undertakes development, operation and maintenance of highways, roads and related projects on a build-operate-transfer (BOT) basis.
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