Key benchmark indices moved in a narrow range in negative zone mid-morning trade. The S&P BSE Sensex was down 38.40 points or 0.19%, off 53.57 points from the day's high and up 36.88 points from the day's low. Weak macroeconomic data weighed on sentiment. While industrial production registered a surprise contraction in May 2013, consumer price inflation accelerated in June 2013, data released by the government after trading hours on Friday, 12 July 2013, showed. The market breadth, indicating the overall health of the market, was positive.
IT stocks gained for the second day in a row after Infosys retained its revenue growth guidance in dollar terms for the year ending 31 March 2014 (FY 2014) at the time of announcing Q1 June 2013 result on Friday, 12 July 2013. TCS and HCL Technologies scaled record high and Tech Mahindra hit 52-week high However, Infosys fell on profit booking after Friday's rally. Pharmaceutical stocks gained on renewed buying. Shares of Dr Reddy's Laboratories and Lupin scaled record high. Sun Pharmaceutical Industries reversed direction after striking record high.
A bout of volatility was witnessed in early trade as key benchmark indices once again turned negative after turning positive after a lower start triggered on weak macroeconomic data announced after trading hours on Friday, 12 July 2013. The CNX Nifty regained the psychological 6,000 mark after falling below that level in early trade. The market hovered in red in morning trade. Key benchmark indices moved in a narrow range in mid-morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 644.82 crore on Friday, 12 July 2013, as per provisional data from the stock exchanges.
At 11:18 IST, the S&P BSE Sensex was down 38.40 points or 0.19% to 19,920.07. The index gained 15.17 points at the day's high of 19,973.64 in early trade. The index fell 75.28 points at the day's low of 19,883.19 in morning trade.
The CNX Nifty was down 11.65 points or 0.19% to 5,997.35. The index hit a high of 6,010.90 in intraday trade. The index hit a low of 5,980.95 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 954 shares gained and 691 shares fell. A total of 112 shares were unchanged.
The total turnover on BSE amounted to Rs 623 crore by 11:20 IST, compared to Rs 443 crore by 10:20 IST.
Among the 30-share Sensex pack, 16 stocks declined and rest of them gained.
IT stocks gained for the second day in a row after Infosys retained its revenue growth guidance in dollar terms for the year ending 31 March 2014 (FY 2014) at the time of announcing Q1 June 2013 result on Friday, 12 July 2013. Wipro rose 1.45%.
TCS gained 1.77% to Rs 1,634.50 and was the top gainer from the Sensex pack. The stock hit record high of Rs 1,634.80 in intraday trade today, 15 July 2013.
HCL Technologies gained 1.96% to Rs 877. The stock hit record high of Rs 877.50 in intraday trade today, 15 July 2013.
Tech Mahindra rose 0.33% to Rs 1,125.85. The stock hit 52-week high of Rs 1,131 in intraday trade today, 15 July 2013. Tech Mahindra on Friday, 12 July 2013, announced that it has completed the process of allocating shares of the company to the shareholders of erstwhile Mahindra Satyam. The issued capital of the company has gone up from earlier 12.9 crore shares to 23.2 crore shares. Subsequent to the scheme of amalgamation between Tech Mahindra and Mahindra Satyam becoming effective, the board of directors fixed 5 July 2013 as record date for Mahindra Satyam shareholders. The new shares were admitted for trading on the stock exchanges on 12 July 2013.
Infosys fell 1.56% on profit booking after Friday's 10.92% rally. Infosys retained its guidance of 6% to 10% growth in revenue in dollar terms for the year ending 31 March 2014 (FY 2014) at the time of announcing Q1 June 2013 result on Friday, 12 July 2013. The company has raised the guidance in rupee terms due to a steep depreciation of the rupee against the dollar. The company has forecast 13% to 17% growth in revenue in rupee terms for FY 2014, higher than its earlier guidance of 6% to 10% growth which the company had given at the time of announcement of Q4 March 2013 results.
Infosys said that compensation increases for FY 2014 which will become effective from July 2003, will adversely impact the company's profit margins in the future quarters. The company's management is cautiously optimistic about rest of the year.
Pharmaceutical stocks gained on renewed buying. Dr Reddy's Laboratories rose 1.41% to Rs 2,383 after striking a record high of Rs 2,387.90 in intraday trade today, 15 July 2013. The company on Friday, 12 July 2013, announced the launche of Decitabine for Injection (50 mg), a therapeutic equivalent generic version of Dacogen (Decitabine for Injection), in the US market on 11 July 2013, following the approval by the United States Food & Drugs Administration (USFDA) of Dr Reddy's ANDA for Decitabine for Injection. The Dacogen brand had sales of approximately $260 million for twelve months ending July 2013 in the US according to IMS Health data.
Lupin gained 2.42% to Rs 889.55 after striking a record high of Rs 890 in intraday trade today, 15 July 2013.
Sun Pharmaceutical Industries shed 0.11% to Rs 1,107. The stock reversed direction after striking a record high of Rs 1,113.30 in intraday trade today, 15 July 2013. The company last week said that USFDA has granted its subsidiary final approval for its Abbreviated New Drug Applications (ANDA) for generic version of Prandin, Repaglinide tablets. Repaglinide tablets, 1 mg and 2 mg are therapeutic equivalents of Novo Nordisk's Prandin tablets. These tablets have annual sales of approximately $200 million in the US. Repaglinide tablets are indicated as an adjunct to diet and exercise to improve glycemic control in adults with type-2 diabetes mellitus. Sun Pharma's subsidiary, being the first-to-file an ANDA for generic Prandin with a para IV certification, is eligible for a 180-day marketing exclusivity in the US.
Glenmark Pharmaceuticals rose 0.7%. The company after market hours on Friday, 12 July 2013, confirmed that its subsidiary, Glenmark Generics, has filed abbreviated new drug applications (ANDAs) for Lacosamide Tablets, and Oral solution with the United States Food and Drug Administration (USFDA) with a Paragraph IV Certification for the Orange-Book listed patent. Glenmark's ANDA products are generic versions of VIMPAT, which are indicated for an adjunctive therapy in the treatment for partial-onset seizures in adults with epilepsy.
According to IMS Health data, the VIMPAT tablets and solution had annual sales of approximately $353 million in the United States for the twelve months ended 31 March 2013.
On 10 July 2013, UCB, INC., UCS Pharma GmbH, Research Corporation Technologies, Inc. and Harris FRC Corporation filed suit against Glenmark Generics and Glenmark Generics Inc. in the United States District Court for the District of Delaware, seeking to prevent Glenmark from commercializing its ANDA product prior to the expiration of US Patent. This lawsuit was filed under the provisions of the Hatch-Waxman Act. If Glenmark is successful in its challenge of the patent, it will garner 180-day exclusivity for its products.
Cipla (up 0.49%), Ranbaxy Laboratories (up 0.44%) and Wockhardt (up 1.82%) gained.
Shasun Pharmaceuticals rose 2.08% after the company on Saturday, 15 July 2013, said it has signed a letter of intent with SeQuent Scientific to form a joint venture company to develop and sell veterinary products in the global market.
Industrial production declined 1.6% in May 2013, as against a downwardly revised 1.9% growth in April 2013, data released by the government after trading hours on Friday, 12 July 2013, showed. The continuous decline in the output of mining sector remained the major drag on the growth of industrial production, while the output of manufacturing sector also declined in May 2013. The output of the mining sector declined 5.7% and that of the manufacturing sector declined 2% in May 2013. However, the electricity generation grew 6.2% in May 2013, restricting further decline in the output of industrial production in May 2013.
The industrial production growth for the month of April 2013 has been revised downwards to 1.9% from 2.3% reported earlier, while the growth for the month of February 2013 has been scaled up slightly to 0.6% from 0.5% reported earlier.
Consumer price inflation accelerated in June 2013, another data released by the government after trading hours on Friday, 12 July 2013, showed. The combined consumer price index (CPI) for urban and rural India edged up to 9.87% in June 2013 from 9.31% in May 2013.
The government unveils data on inflation based on the wholesale price index (WPI) for June 2013 today, 15 July 2013. WPI inflation is seen inching up a bit at 4.8% in June 2013, from 4.7% in May 2013, as per the median estimate of a poll of economists carried out by Capital Market.
Asian stocks were mostly higher after data showed China's economy grew in line with expectations in the second quarter, belying some fears of a sharper slowdown. Key benchmark indices in China, Hong Kong, Singapore and Taiwan were up 0.08% to 1.38%. Key benchmark indices in South Korea and Indonesia were off 0.23% to 0.91%. Japanese markets were closed for a holiday.
China's economy grew 7.5% in the second quarter compared to a year earlier, while industrial production for June rose 8.9% from year-ago levels, slowing from May's 9.2% growth, the National Bureau of Statistics said Monday. The gross domestic product result was down from the first quarter's 7.7% advance. June retail sales rose 13.3% on an annual basis, beating May's 12.9% increase to extend an upward trend for the data point.
Urban fixed-asset investment -- watched as an indicator of construction spending -- grew an average 20.1% in the January-June period, down from 20.4% in January-May. Fixed-asset investment is reported on a year-to-date basis.
Unlike during other recent slowdowns, China's new government has indicated it plans to focus more on economic reforms than on short-term stimulus.
Trading in US index futures indicated that the Dow could gain 37 points at the opening bell on Monday, 15 July 2013. US stocks on Friday, 12 July 2013, recorded a third week of gains, with the Dow industrials and the S&P 500 tallying record closes following upbeat earnings from two major banks.
Federal Reserve Chairman Ben Bernanke is due to deliver testimony on monetary policy in Washington on 17 and 18 July 2013. The minutes of the Fed's June meeting released on 10 July 2013 showed that while "several members judged that a reduction in asset purchases would likely soon be warranted," many want to see further improvement in the labor market before reducing the central bank's $85 billion-a-month quantitative easing program. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth. At a press conference following the June 18-19 meeting, Bernanke said the central bank could start reducing its $85 billion in monthly bond purchases later this year if the economy continues to improve in line with its forecasts.
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