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Sun Pharma trims losses after clarification

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Capital Market
Last Updated : Sep 12 2014 | 5:00 PM IST

Key benchmark indices alternately swung between positive and negative zone near the flat line in mid-afternoon trade. The barometer index, the S&P BSE Sensex, once again regained the psychological 27,000 level, having alternately moved above and below that level in intraday trade so far. It had fallen below that mark yesterday, 11 September 2014. The Sensex was currently up 10.22 points or 0.04% at 27,006.09. Benchmark indices have moved in a very narrow range so far during the trading session. The market breadth indicating the overall health of the market was positive. Sun Pharmaceuticals Industries trimmed losses in volatile trade after clarification on report that the company's manufacturing facility in Halol, Gujarat is undergoing a surprise inspection by the US Food and Drug Administration. Maruti Suzuki India rose after the company's chairman R C Bhargava was quoted as saying that the car maker is confident of double-digit growth in car sales this year. Oracle Financial Services Software jumped after the company's board declared a huge interim dividend. Macroeconomic data due after trading hours today, 12 September 2014, is likely to show easing of consumer price inflation in August 2014 and a muted growth in industrial production in July 2014. Meanwhile, a recent pick up in monsoon could ease concerns of food price inflation and boost sowing of Kharif crops.

Among the side counters, Amara Raja Batteries, Ingersoll-Rand (India) and Wyeth scaled record high. Exide Industries, Indraprastha Gas, Capital First and Lovable Lingerie hit 52-week high.

Meanwhile, Transport Minister Nitin Gadkari reportedly said at an industry event today, 12 September 2014, that the government plans to launch Rs 2 lakh crore worth of infrastructure projects this year.

In overseas markets, European stocks reversed initial gains before European Central Bank President Mario Draghi meets euro-area finance ministers. Asian stocks edged higher after the latest data showed credit growth of Chinese financial institutions surged last month.

In the foreign exchange market, the rupee edged higher against the dollar in choppy trade.

Brent crude oil futures edged higher in volatile trade on geopolitical worries.

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At 14:18 IST, the S&P BSE Sensex was up 10.22 points or 0.04% at 27,006.09. The index fell 29.96 points at the day's low of 26,965.91 in afternoon trade. The index gained 69.15 points at the day's high of 27,065.02 in early trade.

The CNX Nifty was up 1 point or 0.01% at 8,086.70. The index hit a low of 8,071.60 in intraday trade. The index hit a high of 8,102.95 in intraday trade.

The market breadth indicating the overall health of the market was positive. On BSE, 1,639 shares gained and 1,302 shares fell. A total of 100 shares were unchanged.

The BSE Mid-Cap index was up 13.91 points or 0.14% at 9,977.42. The BSE Small-Cap index was up 66.43 points or 0.6% at 11,177.35. Both these indices outperformed the Sensex.

Sun Pharmaceuticals Industries trimmed losses in volatile trade after clarification on report that the company's manufacturing facility in Halol, Gujarat is undergoing a surprise inspection by the US Food and Drug Administration. The stock was off 1.89% at Rs 807.25. The stock hit high of Rs 819.25 and low of Rs 789 so far during the day. Sun Pharma said that its manufacturing facilities in India undergo many routine regulatory inspections from various countries as part of normal course of business, from time to time. Conduct of each of these inspections per se has no material impact, the company said. The company also said without elaborating that there is no material impact of the inspection of the Halol, Gujarat plant by the US Food and Drug Administration.

Maruti Suzuki India rose after the company's chairman R C Bhargava was quoted as saying that the car maker is confident of double-digit growth in car sales this year. The stock was up 1.55%. Bhargava was also quoted as saying in a newspaper interview that Maruti plans to invest Rs 4000 crore over the next five years in developing at least five new products at its India research & development (R&D) centre.

Oracle Financial Services Software rose 7.29% to Rs 3,961.45 after scaling a record high of Rs 4,080 in intraday trade. Oracle Financial Services Software during trading hours today, 12 September 2014, said that the company's board has declared an interim dividend of Rs 485 per equity share. Based on the ruling market price, the stock offers a high dividend yield of 12.24%.

Amara Raja Batteries jumped 9.13% to Rs 652.60 after scaling a record high of Rs 658.70 in intraday trade.

Exide Industries gained 4.61% to Rs 172.35 after hitting a 52-week high of Rs 173.50 in intraday trade.

Capital First surged 5.26% to Rs 336 after hitting a 52-week high of Rs 348.90 in intraday trade.

Lovable Lingerie advanced 10.38% to Rs 440 after hitting a 52-week high of Rs 451 in intraday trade.

Ingersoll-Rand (India) galloped 8.33% to Rs 753 after scaling a record high of Rs 755 in intraday trade.

Indraprastha Gas jumped 5.69% to Rs 433.10 after hitting a 52-week high of Rs 443.80 in intraday trade.

Wyeth gained 4.9% to Rs 1,062.25 after scaling a record high of Rs 1,100 in intraday trade.

Meanwhile, the provisional data released by the stock exchanges after trading hours yesterday, 11 September 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 433.55 crore on that day.

Brent crude oil futures edged higher in volatile trade on geopolitical worries. Brent for October settlement was up 36 cents at $98.44 a barrel. The contract rose 4 cents to settle at $98.08 a barrel yesterday, 11 September 2014, bouncing back from a 2-year low after Russia warned the US that air strikes in Syria against Islamist militants would be an act of aggression without a UN security mandate. The more active contract Brent for November settlement was up 38 cents at $99.24 a barrel.

US President Barack Obama yesterday, 11 September 2014, said that the US will join the European Union in stiffening sanctions on Russia over Ukraine. The European Union today, 12 September 2014, put into effect a new round of sanctions against Russia over its role in Ukraine, including restrictions on financing for some Russian state-owned companies and asset freezes on leading Russian politicians.

In the foreign exchange market, the rupee edged higher against the dollar in choppy trade. The partially convertible rupee was hovering at 60.82, compared with its close of 60.93 during the previous trading session.

Data due after trading hours today, 12 September 2014, is likely to show easing of consumer price inflation in August 2014 and a muted growth in industrial production in July 2014. The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India is seen decelerating to 7.8% in August 2014, from 7.96% in July 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the CPI data for August 2014 at 17:30 IST today, 12 September 2014. The Reserve Bank of India (RBI) is targeting CPI inflation at 8% by January 2015 and 6% by January 2016.

Meanwhile, the growth in industrial production is seen decelerating to 1.9% in July 2014, from 3.4% in June 2014, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production growth had eased to 3.4% in June 2014, from 5% increase recorded in May 2014. The government will release the industrial production data for July 2014 at 17:30 IST today, 12 September 2014.

The annual rate of inflation based on the monthly Wholesale Price Index (WPI) is seen decelerating to 4.43% in August 2014, from 5.19% in July 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the WPI data for August 2014 at 12 noon on Monday, 15 September 2014.

Meanwhile, a recent pick up in monsoon could ease concerns of food price inflation and boost sowing of Kharif crops. As per reports, the all-India rainfall deficit for the June-September monsoon season has narrowed to 11%, from 15% until the previous week.

European stocks reversed initial gains today, 12 September 2014, before European Central Bank President Mario Draghi meets euro-area finance ministers and the US releases data on retail sales and consumer confidence. Key benchmark indices in Germany and France were off 0.15% to 0.18%. In UK, the FTSE 100 was up 0.23%.

Draghi will meet with euro-area finance ministers in Milan today, 12 September 2014, to discuss economic recovery and progress on the region's banking union. Draghi reportedly said yesterday, 11 September 2014, that investment in the euro area's economy will only return to pre-crisis levels if governments work with the ECB to achieve reforms and stimulate growth.

Asian stocks edged higher today, 12 September 2014, after the latest data showed credit growth of Chinese financial institutions surged last month. Key benchmark indices in Japan, Indonesia, South Korea, China and Singapore were up 0.12% to 0.88%. Key benchmark indices in Taiwan and Hong Kong were off 0.27% to 1.07%.

Chinese banks stepped up lending in August after a big fall a month earlier, data from the central bank showed today, 12 September 2014. Chinese financial institutions issued 702.5 billion yuan ($114.6 billion) in new yuan loans in August, up sharply from 385.2 billion yuan in July. Total social financing--a broader measurement of credit in the economy--was 957.4 billion yuan in August, up from 273.1 billion yuan in July.

The Bank of Korea held its policy interest rate at 2.25% today, 12 September 2014, as widely expected after it cut the benchmark by a quarter-point at its previous meeting.

Trading in US index futures indicated that the Dow could fall 6 points at the opening bell today, 12 September 2014. US stocks eked out small gains on Thursday, 11 September 2014, as an unexpected increase in weekly jobless claims and falling commodities prices encouraged investors to remain cautious. The number of people who applied for jobless benefits last week unexpectedly rose, reaching the highest level since late June.

Investors will look to next week's Federal Open Market Committee (FOMC) meeting for fresh guidance on US interest rates. At the end of a two-day meeting on 16-17 September 2014, the FOMC is widely expected to announce cut in Fed's monthly bond-buying program by another $10 billion to $15 billion, staying on track to end the program at its October meeting. The Fed is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008.

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First Published: Sep 12 2014 | 2:22 PM IST

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