Key benchmark indices trimmed gains in morning trade after a strong opening in early trade buoyed by gains in Asian markets and overnight rally on the Wall Street. At 10:23 IST, the barometer index, the S&P BSE Sensex was up 135.17 points or 0.53% at 25,841.10. The 50-unit CNX Nifty was up 35.55 points or 0.45% at 7,864.65.
The market breadth indicating the overall health of the market was strong. On BSE, 1,146 shares rose and 678 shares declined. A total of 75 shares were unchanged. The BSE Mid-Cap index was up 0.04%. The BSE Small-Cap index was up 0.14%. Both these indices underperformed the Sensex.
In overseas markets, Asian stocks edged higher today, 16 September 2015, cheered by impressive gains on Wall Street overnight. US stocks rallied yesterday, 15 September 2015 as investors eyed some of the final data reports leading into the Federal Reserve's highly-anticipated two-day meeting that kicks off later in the global day today, 16 September 2015. The Federal Reserve policy makers will deliberate the first interest rate increase in nearly a decade. Higher US interest rates will drain liquidity from global emerging markets like India and redirect it to developed economies. The Fed has held its benchmark short-term interest rate near zero since December 2008.
Closer home, India's exports fell sharply and trade deficit widened last month, as per the latest data released by the Ministry of Commerce & Industry. 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.
Meanwhile, as per the latest data released by the Reserve Bank of India (RBI), India's services exports rose 0.3% to $13.39 billion in July 2015 over July 2014, snapping decline for last four sequential months. However, India's services imports jumped 10% to $7.502 billion in July 2015. Thus, India's services trade surplus declined 9.8% to $5.884 billion in July 2015 from $6.522 billion in July 2014.
Bank stocks edged higher. Among PSU banks, Bank of India (up 0.98%), Bank of Baroda (up 0.55%), Canara Bank (up 1.03%), Andhra Bank (up 0.24%), State Bank of India (up 1.01%), Syndicate Bank (up 0.82%), Union Bank of India (up 0.62%), Punjab National Bank (up 0.59%), IDBI Bank (up 0.35%), Oriental Bank of India (up 0.54%) and UCO Bank (up 0.24%) edged higher.
Among private sector banks, Axis Bank (up 1.45%), Yes Bank (up 1.82%), ICICI Bank (up 0.99%), IndusInd Bank (up 0.9%) and HDFC Bank (up 0.1%) edged higher. Kotak Mahindra Bank (down 0.41%) edged lower.
Cement stocks gained. Shree Cement (up 0.8%), Ambuja Cements (up 0.9%), ACC (up 0.38%) and UltraTech Cement (up 0.42%) edged higher.
Grasim Industries was up 0.07%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Sun Pharmaceutical Industries (Sun Pharma) rose 2.53% at Rs 888.65 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 subdidiary 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.
For the six months period ended 30 June 2015, InSite Vision recorded revenues of $3.8 million, an EBITDA loss of $6.4 million and a net loss of $7.5 million.
Natco Pharma rose 1.27% at Rs 2,253.35 after the company said it has raised Rs 340.88 crore by issuing shares to qualified institutional buyers (QIBs). Natco Pharma announced that it has raised Rs 340.88 crore by issuing shares to QIBs. The company issued 16 lakh shares at a price of Rs 2,130.55 apiece. The issue price was at a 5% discount to the floor price of Rs 2,242.68 per share. The discount translates to Rs 112.13 per share. The announcement was made after market hours yesterday, 15 September 2015.
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