Stocks hovered in positive zone with modest gains in early afternoon trade. At 12:22 IST, the barometer index, the S&P BSE Sensex, was up 66.89 points or 0.2% at 33,841.55. The Nifty 50 index was up 16.70 points or 0.16% at 10,395.10. Stocks from auto and pharma sectors saw mixed trend.
Stocks struggled for direction in opening trade amid mild volatility. Soon the key benchmark indices nudged higher and posted small gains in early trade. Stocks extended early gains and hit fresh intraday high in morning trade. Key benchmark indices trimmed gains soon after hitting intraday high in mid-morning trade.
The S&P BSE Mid-Cap index was off 0.14%. The S&P BSE Small-Cap index was up 0.16%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,324 shares fell and 1,168 shares rose. A total of 117 shares were unchanged. Breadth was negative in early trade. It was strong in morning trade. It once again turned negative in mid-morning trade.
Auto stocks saw mixed trend. Hero MotoCorp (up 1.25%), Eicher Motors (up 0.05%), Ashok Leyland (up 0.42%), SML Isuzu (up 0.31%) and Bajaj Auto (up 0.07%) rose. Escorts (down 1.06%), Tata Motors (down 0.05%), Maruti Suzuki India (down 0.74%) and TVS Motor Company (down 0.54%) fell.
Mahindra & Mahindra (M&M) dropped 1.28%. The company announced that it would make an additional investment at its Chakan plant in Maharashtra. As part of its expansion plans, the company will invest over Rs 500 crore in its electric vehicle (EV) project under the new EV policy of the Government of Maharashtra. The announcement was made after market hours yesterday, 19 February 2018.
The investment for EV and EV components is in addition to its ongoing expansion plan in Chakan which includes an initial investment of Rs 6500 crore. This additional investment of Rs 500 crore will be utilized towards product development and capacity enhancement for EVs and related components.
Pharma shares saw mixed trend. Dr Reddy's Laboratories (up 0.59%), Glenmark Pharmaceuticals (up 0.13%), Alkem Laboratories (up 0.15%), GlaxoSmithKline Pharmaceuticals (up 0.1%) rose. Aurobindo Pharma (down 1.89%), Wockhardt (down 2.22%), Cadila Healthcare (down 0.21%), Cipla (down 0.58%) and Lupin (down 0.1%) fell.
Sun Pharmaceutical Industries (Sun Pharma) fell 0.76%. Sun Pharma said that one of its wholly owned subsidiaries has increased its shareholding in Ranbaxy Malaysia Sdn Bhd, Malaysia, by way of further purchase of 3.86 lakh shares (equivalent to 4.84%) of Ranbaxy Malaysia Sdn Bhd. The announcement was made after market hours yesterday, 19 February 2018.
Kaya rose 3.14% to Rs 959.40 after portfolio management clients of Equity Intelligence India and EQ India Fund, which are controlled by well known investor Porinju Veliyath, acquired 13,350 shares (representing 0.10% of total paid up equity) of Kaya. Shares were acquired from the open market on 19 February 2018. The company made the disclosure after market hours yesterday, 19 February 2018.
CMI rose 2.21% after the company said its wholly-owned subsidiary CMI Energy India has bagged an initial order from Engineers India (EIL) for supplying High Voltage (HV) cables in different sizes and quantities. The announcement was made during trading hours today, 20 February 2018.
This is for the first time CMI Energy has bagged order from EIL and has entered into the business of HV cable business with them. With this order CMI energy has formed an association with EIL, Delhi as a vendor, which opens up enormous business opportunities in the future with them and their clients in a big way, the company said.
Post completion of this purchase of shares, the total holding of Sun Pharma alongwith its wholly owned subsidiary will increase from 85.9% to 90.74% in Ranbaxy Malaysia Sbn Bhd.
Overseas, most Asian stocks fell as Treasury yields climbed back toward recent four-year highs. Chinese markets will reopen on Thursday, 22 February 2018. Markets in Taiwan will reopen tomorrow, 21 February 2018 after a week-long holiday break. US markets remained closed yesterday, 19 February 2018 in observance of Presidents Day.
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