Domestic equity benchmarks extended early losses and hit fresh intraday low in morning trade. Investors' sentiment was dented as high CPI inflation dimmed hopes of further rate cut by the Reserve bank of India.
At 10:25 IST, the barometer index, the S&P BSE Sensex, was down 374.73 points or 1.02% at 36,318.96. The Nifty 50 index fell 110.60 points or 1.02% at 10,692.10.
In the broader market, the S&P BSE Mid-Cap index lost 0.61% while the S&P BSE Small-Cap index slipped 0.47%.
The market breadth was weak. On the BSE, 684 shares rose and 1412 shares fell. A total of 108 shares were unchanged.
Economy:
The all-India general CPI inflation declined to 6.09% in June 2020, compared with 6.27% in May 2020. The corresponding provisional inflation rate for rural area was 6.20% and urban area 5.91% in June 2020 as against 6.18% and 6.43% in May 2020.
The core CPI inflation eased to 4.87% in June 2020 compared with 4.93% in May 2020. The cumulative CPI inflation has moved up to 6.52% in June-May FY2020 compared with 3.07% in June-May FY2019.
Buzzing Index:
The Nifty Pharma index rose 0.68% to 10,175.35. The index has risen 3% in five sessions while the benchmark Nifty 50 index has gained 0.14% during the same period.
Among the index constituents, Biocon (up 2.36%), Torrent Pharma (up 1.44%), Alkem Laboratories (up 1.16%), Lupin (up 1.13%), Aurobindo Pharma (up 1.15%), Cipla (up 0.77%), Cadila Healthcare (up 0.81%), Dr. Reddy's Labs (up 0.55%) and Sun Pharma (up 0.14%) advanced while Divi's Labs was down 0.11%.
Cipla was up 0.78% to Rs 643.10. The drug major on Tuesday (14 July) said it received final approval for its abbreviated new drug application (ANDA) for Icatibant injectable from the United States Food and Drug Administration (USFDA).
Meanwhile, Cipla on Monday (13 July) announced that the discussions to renegotiate the deal between Cipla's US subsidiary CipTech and Pulmatrix Inc for the co-development and commercialization of antifungal drug Pulmazole, are now in progress. The renegotiated agreement may include, amongst other things a reallocation of costs and a grant of rights to CipTec to develop and commercialize Pulmazole in select markets outside the United States, Cipla said in a regulatory filing.
Stocks in Spotlight:
The Phoenix Mills lost 1.87% to Rs 581.85. The company's board has approved fund raising Rs 1100 crore through issuance of shares, non-convertible debt instruments or other instruments.
Housing Development Finance Corp. fell 3.21% to Rs 1787.20. The housing finance major on Monday (13 July) said it is planning to raise up to Rs 45,000 crore by issuing debt securities, and will seek approval of shareholders in its upcoming AGM later this month.
The board of directors of HDFC will meet on 30 July to announce the Q1 June 2020 results. The 43rd annual general meeting (AGM) of the corporation is scheduled to be held later on the same day (30 July 2020).
Godrej Industries was down 0.14% to Rs 363.85. The conglomerate's board on Monday (13 July) approved issuing upto 7,500 rated, listed, unsecured, redeemable, non-convertible debentures having face value of Rs 10 lakh each, aggregating to Rs 750 crore on private placement basis.
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