Stocks continued to trade with positive bias in mid-morning trade led by gains in HDFC and HDFC Bank. At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 71.48 points or 0.23% at 31,167.18. The Nifty 50 index was up 16.65 points or 0.17% at 9,633.05. IT stocks declined. Telecom stocks rose.
Stocks drifted higher in early trade as retail inflation and industrial output data released after market hours yesterday, 12 June 2017 boosted expectations of an interest rate cut by the Reserve Bank of India (RBI). Ket equity benchmarks held onto gains thereafter.
The S&P BSE Mid-Cap index was up 0.48%. The S&P BSE Small-Cap index was up 0.76%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,452 shares rose and 851 shares fell. A total of 144 shares were unchanged.
Sun Pharmaceutical Industries rose 1.28% after the company said one of its wholly-owned subsidiaries received US drug regulator's approval for generic Zetia tablets. The announcement was made before trading hours today, 13 June 2017.
Sun Pharmaceutical Industries announced that one of its wholly-owned subsidiaries has received final approval from US Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for generic version of Zetia, (ezetimibe) tablets 10mg. These generic ezetimibe tablets are therapeutic equivalents of Merck's Zetia tablets.
As per IMS, ezetimibe tablets had annual sales of approximately $2.7 billion in the US for the 12 months ended April 2017. Zetia is used to help lower cholesterol in the blood.
IT stocks declined. Tech Mahindra (down 1.51%), TCS (down 0.56%), Infosys (down 0.86%), HCL Technologies (down 0.61%), MindTree (down 0.36%), Hexaware Technologies (up 0.63%) declined. Oracle Financial Services Software (up 0.33%) rose.
Wipro fell 0.84%. The company said that in view of market activity in the company's shares on Monday, 12 June 2017, the New York Stock Exchange (NYSE) has contacted the company in accordance with its usual practice. The company felt that it was important to clarify to the market that the payable date and ex-dividend date for its ADR (American Depository Receipts) bonus issue, or stock dividend, are yet to be determined, Wipro said.
At NYSE, for ADR stock dividends or bonus issue, the ex-dividend date is set as the first business day after the stock dividend is paid, which is also after the record date. Therefore NYSE has not yet declared an ex-dividend date for Wipro's ADR program. Once the payable date is declared NYSE will announce the ex-dividend date for the ADR, Wipro clarified. The announcement was made after market hours yesterday, 12 June 2017.
Telecom stocks rose. Idea Cellular (up 0.32%), MTNL (up 2.47%), Tata Teleservices (Maharashtra) (up 0.46%) and Reliance Communications (up 1.36%) rose. Bharti Airtel (down 0.11%) fell.
Shares of Bharti Infratel rose 0.5%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Cosmo Films rose 2.16% after the company announced expansion of its range of direct thermal printable products. Cosmo Films said it will now offer an extended range of direct thermal printable (DTP) products. This would include standard DTP films, top coated DTP films, high temperature DTP films and DTP paper. The announcement was made after market hours yesterday, 12 June 2017.
On the macro front, the index of industrial production (IIP) rose by 3.1% in April led by robust growth in electricity generation, data showed yesterday, 12 June 2017. IIP grew by 6.5% in April last year. The CSO also revised upwards the IIP growth figure for March to 3.75% from its provisional estimate of 2.7%. While presenting the March 2017 data, the IIP base year was revised from 2004-05 to 2011-12.
Another data released yesterday, 12 June 2017, showed that retail price inflation, as measured by the consumer price index (CPI), slowed to 2.18% in May from 2.99% in April 2017 as food prices started falling from their year-ago level.
Overseas, most Asian stocks were trading higher, defying a weak lead from Wall Street. Major US stock-market benchmarks closed lower yesterday, 12 June 2017 weighed by a second straight session of firm losses in technology shares.
The US Federal Reserve will meet Tuesday and Wednesday, and investors expect the central bank to raise interest rates for the third time since December. Super-low unemployment, gains in factory output and other economic data pointing to a recovery in the US economy have led investors to believe that the Fed will lift rates.
Meanwhile, the Trump administration yesterday, 12 June 2017 proposed a wide-ranging rethinking of the rules governing the US financial sector in a report that makes scores of recommendations that have been on the banking industry's wish list for years.
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