Key benchmark indices trimmed intraday gains in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 18.08 points or 0.08%, off close to 70 points from the day's high and up about 30 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
Auto stocks edged lower. Most pharma stocks declined. Glenmark Pharmaceuticals dropped after the company said it has lost its appeal to invalidate Abbott Laboratories' TARKA patent.
Key benchmark indices edged higher amid initial volatility. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high. Key benchmark indices extended initial gains and hit fresh intraday high in morning trade. Key benchmark indices trimmed intraday gains in mid-morning trade. Key benchmark indices moved in a narrow range in positive zone in early afternoon trade. Key benchmark indices trimmed intraday gains in early afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 212.85 crore on Monday, 21 April 2014, as per provisional data from the stock exchanges.
Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month April 2014 series to May 2014 series. The April 2014 F&O contracts expire tomorrow, 23 April 2014. The stock market remains closed on Thursday, 24 April 2014, on account of Parliamentary elections in Mumbai constituency.
At 13:20 IST, the S&P BSE Sensex was up 18.08 points or 0.08% to 22,782.91. The index gained 88.20 points at the day's high of 22,853.03 in morning trade, a lifetime high for the barometer index. The index fell 10.32 points at the day's low of 22,754.51 in early trade.
The CNX Nifty was up 5.15 points or 0.08% to 6,822.80. The index hit a high of 6,838 in intraday trade, a lifetime high for the index. The index hit a low of 6,813 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,376 shares gained and 1,227 shares fell. A total of 116 shares were unchanged.
The BSE Mid-Cap index was up 10.45 points or 0.14% at 7,407.86. The BSE Small-Cap index was up 14.97 points or 0.2% at 7,642.94. Both these indices outperformed the Sensex.
GAIL (India) (up 2.1%), L&T (up 1.55%) and HDFC Bank (up 1.42%) edged higher from the Sensex pack.
Most pharma stocks declined. Cipla (down 0.39%), Ranbaxy Laboratories (down 0.18%) and Sun Pharmaceutical Industries (down 0.09%) declined. Dr Reddy's Laboratories rose 1.21%.
Glenmark Pharmaceuticals lost 1.73%. Glenmark Pharmaceuticals before market hours today, 22 April 2014, said it has lost its appeal to invalidate Abbott Laboratories' TARKA (trandolapril/verapamil hydrochloride) patent when the Court of Appeals for the Federal Circuit, USA affirmed the district court's decision regarding Glenmark's marketing of a generic equivalent of TARKA. Glenmark said it is disappointed with the decision and is considering its options, the company said in a statement.
Lupin rose 2%. Lupin announced after market hours on Monday, 21 April 2014, the appointment of Theresa Stevens as Chief Corporate Development Officer for its global operations. Theresa will assume full responsibility for global merger and acquisitions and specialty business strategy. Prior to joining Lupin, Theresa was with Aptalis pharma as the Chief Corporate Development Officer responsible for Mergers & Acquisitions (M&A), Strategy and Global Business Development. Before Aptalis, Theresa was in Novartis for 9+ years and held positions of increasing responsibility including Head, Global BD&L for General Medicines, Executive Director and Head, Global BD&L for Respiratory and Dermatology Business Units and Head US Business Development & Licensing, Life cycle management and generic brand strategies.
Theresa has a Masters Degree in Biochemistry from University of Maryland and is a Juris Doctor (J.D) from the Widener University School of Law, Wilmington, Delaware. She started her career as a research scientist at Dupont and has practiced Corporate Law at Pennie & Edmonds (Jones Day). Having worked with Aptalis and Novartis, Theresa has over 27 years of experience in the Pharmaceutical and Biotech sector with significant experience in managing strategy, corporate development, M&A and licensing.
Commenting on the appointment, Nilesh Gupta, Managing Director, Lupin said, "I am very pleased to welcome Theresa to the Lupin family. I am sure her rich experience in the areas of M&A and Specialty Strategy within the Pharmaceutical and Biotech industry sector will help Lupin's growth plans."
Auto stocks edged lower. Tata Motors (down 0.66%), Ashok Leyland (down 0.21%) and Mahindra & Mahindra (M&M) (down 0.59%) edged lower.
Maruti Suzuki India fell 0.74% to Rs 1,973.55, with the stock reversing direction after hitting record high of Rs 2,007.60 at the onset of the trading session.
Shares of most two wheeler makers gained. Hero MotoCorp (up 0.39%) and Bajaj Auto (up 0.07%) rose. But, TVS Motor Company dropped 0.11%.
Paper Products lost 2.05% as the stock turned ex-dividend today, 22 April 2014, for dividend of Rs 2.80 per share for the year ended 31 December 2013.
In the foreign exchange market, the rupee edged lower against the dollar on speculation importers stepped up dollar purchases to meet month-end payments. The partially convertible rupee was hovering at 60.74, compared with its close of 60.59/60 on Monday, 21 April 2014.
An El Nino will probably start as soon as July, according to the Australian government forecaster, adding to predictions for the event that can affect weather patterns worldwide and roil farm-commodity prices. All the climate models surveyed indicated that an El Nino was likely this year, with six of seven models suggesting that thresholds for the event may be exceeded as early as July, the Bureau of Meteorology said in a statement today, 22 April 2014. A warming of the Pacific Ocean, which drives the changes by affecting the atmosphere above it, will probably continue in the coming months, the Melbourne-based bureau said.
The chances of an El Nino have increased to 65% from 52%, the US Climate Prediction Center said on 10 April 2014. There are signs that an El Nino is imminent, presaging changes to global weather patterns, the UN's World Meteorological Organization said on 15 April 2014.
An El Nino phenomenon is associated with above-average water temperatures in the central and eastern Pacific and can in its worst form bring drought to West Africa (the world's largest cocoa producing region), less rainfall to India during its vital monsoon season and drier conditions for the cultivations crops such as sugar and cotton in major grower Australia.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
European stocks edged higher on Tuesday, 22 April 2014, aided by strength from a number of pharmaceutical shares following reports that Pfizer Inc. will bid for British drug maker AstraZeneca PLC and after Novartis AG announced that it plans to buy GlaxoSmithKline PLC's oncology unit for about $14.5 billion. Key benchmark indices in France, Germany and UK were up by 0.57% to 0.92%.
Asian stock markets edged higher in choppy trade Tuesday, 22 April 2014, after Wall Street stocks rallied into a fifth session overnight. Key benchmark indices in Taiwan, China, Hong Kong, Singapore, and South Korea were up 0.02% to 0.48%. Key benchmark indices in Indonesia and Japan were off 0.39% to 0.85%.
A provisional reading of HSBC Holdings Plc and Markit Economics Ltd.'s China manufacturing purchasing managers' index is due tomorrow, 23 April 2014.
Trading in US index futures indicated that the Dow could drop 21 points at the opening bell on Tuesday, 22 April 2014. US stocks closed modestly higher on Monday, 21 April 2014, helping the S&P 500 to extend its winning streak to the longest in six months. Estimate-beating results from a number of companies on Monday boosted sentiment amid thin volumes on Wall Street.
In economic news, the Chicago Fed National Activity Index decreased slightly in March. However, the Conference Board's leading economic index rose in March and February, signaling that growth could accelerate in coming months.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
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