Key benchmark indices settled with modest losses in a lacklustre trading session. The barometer index, the S&P BSE Sensex, lost 114.86 points or 0.43% to settle at 26,374.70. The Nifty 50 index fell 35.10 points or 0.43% to settle at 8,104.35. After a bit of initial volatility, the two key benchmark indices hovered in negative zone throughout the trading session. Weakness in Asian markets, decline in major US stock indices over the weekend coupled with lacklustre trading on the European bourses added to the market gloom.
Both the Sensex and the Nifty dropped for the fourth straight session. Both the indices settled at their lowest closing level in nearly two weeks.
Bank stocks edged lower. Axis Bank declined after the bank reduced its marginal cost of funds based lending rates (MCLR) by 10 basis points in the overnight tenor and by 15 basis points across all other tenors.
Pharma stocks were mixed. Cipla rose after the company said it has received final approval for its abbreviated new drug application (ANDA) for Fenofibrate tablets USP 48mg and 145mg, from the United States Food and Drug Administration (USFDA). Lupin advanced after the company announced that it has launched its Voriconazole Tablets, 50 mg & 200 mg and Voriconazole Oral Suspension, 40 mg/ml in the US.
Overseas, European stocks were mixed. Most Asian stocks declined after Chinese government researchers see China's GDP growth slowing in 2017. China's economy will grow at around 6.5% year-on-year in 2017, according to a forecast from government think tank China Academy of Social Sciences (CASS) published today, 19 December 2016. CASS sees quarterly on-year growth of 6.5% in the first and second quarters, and 6.4% in the third and fourth quarters. China's economy has grown at 6.7% for the first three quarters of 2016.
US stocks closed lower on Friday, 16 December 2016, with the Dow Jones Industrial Average swinging to a loss, following reports that a Chinese warship seized an underwater US Navy drone in international waters off the coast of the Philippines. In the latest economic data in US, housing starts tumbled 18.7% in November, while the number is volatile, it pointed to a housing market recovery that remains choppy.
Wall Street stocks had surged since the presidential election in November. The gains have been attributed to expectations that Donald Trump's policy proposals, such as increased infrastructure spending, tax cuts and deregulation, will spur economic growth.
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The Sensex lost 114.86 points or 0.43% to settle at 26,374.70, its lowest closing level since 7 December 2016. The index rose 16.10 points or 0.06% at the day's high of 26,505.66. It fell 149.18 points or 0.56% at the day's low of 26,340.38.
The Nifty fell 35.10 points or 0.43% to settle at 8,104.35, its lowest closing level since 7 December 2016. The index fell 6.95 points or 0.08% at the day's high of 8,132.50. It fell 44.60 points or 0.54% at the day's low of 8,094.85.
The BSE Mid-Cap index fell 0.51%. The BSE Small-Cap index dropped 0.46%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,552 shares fell and 1,077 shares rose. A total of 191 shares were unchanged.
The total turnover on BSE amounted to Rs 2421.24 crore, lower than turnover of Rs 3140.33 crore registered during the previous trading session.
Among the sectoral indices on the BSE, the BSE Healthcare index (down 0.85%), the BSE Telecom index (down 1.36%), the BSE Capital Goods index (down 0.84%) and the BSE Metal index (down 0.79%) underperformed the Sensex. The BSE FMCG index (down 0.27%), The BSE IT index (down 0.04%) and the BSE Bankex index (down 0.27%) outperformed the Sensex.
Index heavyweight and housing finance major HDFC declined 1.58% at Rs 1,250.25.
Another index heavyweight and cigarette major ITC advanced 0.24% at Rs 227.10.
Bank stocks edged lower. Among the public sector banks, Union Bank of India (down 2.45%), State Bank of India (down 1.27%), Punjab National Bank (down 0.6%), IDBI Bank (down 0.21%) and Bank of Baroda (down 0.19%) declined.
Among private sector banks, RBL Bank (down 1.76%), HDFC Bank (down 0.36%), Kotak Mahindra Bank (down 0.13%) and Yes Bank (down 0.04%) edged lower. ICICI Bank (up 0.51%) and IndusInd Bank (up 0.22%) edged higher.
Axis Bank lost 1.11% after the bank announced that it has reviewed and decided to reduce the marginal cost of funds based lending rates (MCLR) of the bank by 10 basis points in the overnight tenor and by 15 basis points across all other tenors. The rates were effective from 17 December 2016. The announcement was made after market hours on Friday, 16 December 2016.
Pharma stocks were mixed. Sun Pharmaceutical Industries (down 2.3%), Dr Reddy's Laboratories (down 1.06%), GlaxoSmithkline Pharmaceuticals (down 0.82%) and Wockhardt (down 0.45%) edged lower. Alkem Laboratories (up 1.49%), Aurobindo Pharma (up 1.23%) and Divi's Laboratories (up 0.67%) edged higher.
Lupin rose 0.42% after the company announced that it has launched its Voriconazole Tablets, 50 mg & 200 mg and Voriconazole Oral Suspension, 40 mg/ml in the US, having received an approval from the United States Food and Drug Administration (USFDA) earlier to market a generic equivalent of PF Prism CV's Vfend Tablets, 50 mg & 200 mg and Vfend Oral Suspension, 40 mg/ml. The announcement was made during market hours today, 19 December 2016.
It is indicated for use in patients 12 years of age and older in the treatment of some fungal infections. Vfend Tablets, 50 mg & 200 mg had annual US sales of $81 million as per the IMS MAT September 2016 data while Vfend Oral Suspension, 40 mg/ml had annual US sales of $15.2 million as per the IMS MAT September 2016 data.
Cipla was up 0.43% after the company said it has received final approval for its abbreviated new drug application (ANDA) for Fenofibrate tablets USP 48mg and 145mg, from the United States Food and Drug Administration (USFDA). The announcement was made during market hours today, 19 December 2016.
Fenofibrate tablets are generic equivalents of AbbVie's Tricor tablets and are indicated as adjunctive therapy to diet to reduce elevated low-density lipoproteincholesterol (LDL-C), total cholesterol (Total-C), Triglycerides and apolipoprotein B (Apo B), and to increase high-density lipoprotein cholesterol (HDL-C) in adult patients with primary hypercholesterolemia or mixed dyslipidemia.
Tricor tablets and generic equivalents had US annual sales about $307 million for the twelve months ended October 2016, according to IMS Health. Cipla's Fenofibrate tablets will be available for commercial shipment in the US in the coming weeks.
Shares of public sector oil marketing companies (PSU OMCs) edged higher after announcing a hike in petrol and diesel prices. BPCL (up 1.07%) and Indian Oil Corporation (IOCL) (up 2.92%) gained. HPCL (down 0.19%) edged lower. IOCL on Friday, 16 December 2016, announced an increase in the price of petrol and diesel with effect from the midnight of 16/17 December 2016. Petrol price was hiked by Rs 2.21 per litre and diesel price was raised by Rs 1.79 a litre at Delhi (excluding state levies).
Oil India gained 0.8% after the company announced that it has fixed 13 January 2017 as the record date for 1:3 bonus issue. The announcement was made during market hours today, 19 December 2016.
Laurus Labs settled with modest premium on debut. The stock settled at Rs 480.50 on the BSE, a premium of 12.26% over the initial public offer (IPO) price of Rs 428. The stock debuted at Rs 490, a premium of 14.49% to IPO price. The stock hit a high of Rs 498 and low of Rs 475 in intraday trade.
Laurus Labs is a leading research and development (R&D) driven pharmaceutical company, with a leadership position in generic active pharmaceutical ingredients (APIs) for select, high-growth therapeutic areas of antiretrovirals (ARVs) and Hepatitis C.
Mahindra & Mahindra (M&M) was down 0.12%. The company announced that Mahindra Intertrade (MIL), a wholly owned subsidiary of Mahindra Vehicle Manufacturers (MVML) which in turn is a wholly owned subsidiary of the company, has on 16 December 2016, incorporated a joint venture company named Mahindra MSTC Recycling (Mahindra MSTC). The announcement was made on Saturday, 17 December 2016
NTPC advanced 0.19%. National Aluminium Company (Nalco) lost 4.22%. Nalco and NTPC have entered into memorandum of understanding (MoU), for developing power projects and other business collaborations in India. The announcement was made after market hours on Friday, 16 December 2016.
Under the MoU, the companies will float a joint venture namely NTPC-Nalco Power Company (NNPC) to set up power plants. The first such power plant is planned at Gajamara, Odisha with a capacity of 2,400 megawatts (MW) (3X800 MW), at an estimated investment of Rs 14000 crore. The proposed super critical power plant with state-of-the-art technology will supply uninterrupted power to Nalco's smelter at Angul. The process for acquisition of 1,600 acres of land in Gajamara has already commenced.
The Sensex has fallen 323.12 points or 1.21% in four trading sessions from its close of 26,697.82 on 13 December 2016. It has fallen 278.11 points or 1.04% in this month so far (till 19 December 2016). It has risen 257.16 points or 0.98% in calendar year 2016 so far (till 19 December 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 3,880.09 points or 17.24%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 2,702.58 points or 9.29%. The Sensex is off 3,650.04 points or 12.15% from a record high of 30,024.74 hit on 4 March 2015.
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