Gains in index heavyweights Infosys and ITC, a strong intraday rebound in another index heavyweight HDFC and recovery in banking and pharma stocks led a strong intraday rebound for key benchmark indices. The barometer index, the S&P BSE Sensex, rose 144.96 points or 0.59% at 24,696.13, as per the provisional closing data. The 50-unit Nifty 50 index gained 38.15 points or 0.51% at 7,498.75, as per the provisional closing data. After languishing in red until mid-afternoon trade, key indices reversed direction later.
The Sensex rose 155.68 points or 0.63% at the day's high of 24,706.85 in late trade. The barometer index dropped 196.62 points or 0.8% at the day's low of 24,354.55 in early afternoon trade, its lowest level since 2 March 2016. The Nifty rose 47.40 points or 0.63% at the day's high of 7,508 in late trade. The index shed 55.45 points or 0.74% at the day's low of 7,405.15 in early afternoon trade, its lowest level since 2 March 2016.
The market breadth indicating the overall health of the market was negative. On BSE, 1,410 shares fell and 1,165 shares rose. A total of 161 shares were unchanged. The BSE Mid-Cap index was provisionally down 0.41%. The BSE Small-Cap index was provisionally down 0.17%. Both these indices underperformed the Sensex.
In overseas stock markets, main European markets edged higher ahead of the US Federal Reserve's policy decision due later in the global day. Asian stocks were mixed. Most US stocks edged lower yesterday, 15 March 2016, weighed by a fall in oil prices and a string of lackluster economic data.
The Federal Reserve's two-day monetary policy meeting ends today, 16 March 2016. Federal Reserve officials are likely to hold short-term interest rates steady at its policy meeting amid uncertainties about global financial markets and global growth. The Fed in December 2015 raised its benchmark federal-funds rate from near zero to a range between 0.25% and 0.5%.
The total turnover on BSE amounted to Rs 2240 crore, lower than turnover of Rs 2369.49 crore registered during the previous trading session.
Pharma stocks witnessed intraday recovery. Aurobindo Pharma (up 2.41%), Dr Reddy's Laboratories (up 0.58%), Glenmark Pharmaceuticals (up 1.77%), Strides Shasun (up 1.05%), and GlaxoSmithKline Pharmaceuticals (up 2.07%) gained. Wockhardt (down 2.06%) and IPCA Laboratories (down 0.79%), Cadila Healthcare (down 0.19%), Sun Pharmaceutical Industries (down 0.73%), Alkem Laboratories (down 0.13%) and Piramal Enterprises (down 0.19%) declined.
Lupin rose 1.08% to Rs 1,745.20. The stock was volatile. The stock hit high of Rs 1,753.25 and low of Rs 1,698.75 in intraday trade. The stock had tumbled 7.59% to settle at Rs 1,726.60 yesterday, 15 March 2016, after the company's clarification that the United States Food and Drug Administration (USFDA) inspected its Goa facility last week and cited 9 observations. The USFDA's observations are on aspects such as inadequacy and adherence to Standard Operating Procedures (SOPs). Lupin said that it is in the midst of putting together a response to address the USFDA's observations. The company issued the clarification after media reports suggested that the USFDA cited nine observations in its inspection of the company's Goa facility last week.
Cipla gained 1.78% to Rs 534.05. The stock hit high of Rs 534.75 and low of Rs 516.80 in intraday trade. The company before market hours today, 16 March 2016, announced that its wholly owned subsidiary Cipla (EU) Limited, UK (Cipla UK) has made an additional investment of $3 million in Chase Pharmaceuticals Corporation Inc., US (Chase) towards full settlement of its obligation under the agreed arrangement for investment in Chase. Consequently, Cipla UK's total investment in Chase would aggregate to approximately $5.12 million for a 16.7% stake on a fully diluted basis. Chase is an early stage drug development company developing novel approaches to improve treatments for Alzhemimer's disease.
Indian Oil Corporation (IOCL) declined 0.98%. Oil India (OIL) declined 1.48%. BPCL rose 0.93%. IOCL and BPCL in separate announcements said that IOCL, Oil India and Bharat PetroResources (BPRL), acting jointly as the Indian consortium, signed definitive agreements on 16 March 2016 to acquire participatory shares representing 29.9% of the charter capital of LLC "TYNGD", a company organized under the law of Russian Federation, from LLC RN Upstream, a wholly-owned subsidiary of Rosneft Oil Company, the National Oil Company (NOC) of Russia. The acquisition is subject to relevant board, government and regulatory approvals and is expected to close by September 2016. The announcement was made during market hours today, 16 March 2016. BPRL is a wholly owned subsidiary and an exploration and production arm of BPCL.
Rosneft Oil Company holds 80% stake while BP PLC (UK) holds 20% shares in TYNGD through their respective subsidiaries. TYNGD is currently producing 20,000 barrels of oil per day (bopd) with expected peak production of 1 lakh bopd by 2021.
Additionally, a Heads of Agreement was signed for evaluation of acquisition of 23.9% in the CJSC Vankorneft by the consortium of IOCL, OIL and BRPL with Rosneft Oil Company. CJSC Vankorneft is the owner of Vankor field and North Vankor license. A memorandum of association (MoU) was also signed between Rosneft and the Indian consortium for joint evaluation of certain other assets of Rosneft in Russia.
Meanwhile, as per data announced by the government after market hours yesterday, 15 March 2016, India's merchandise exports fell 5.66% in dollar terms in February 2016 over February 2015. Non-petroleum exports fell 2.69%. The trend of falling exports is in tandem with other major world economies, according to a statement from the Ministry of Commerce & Industry. Imports fell 5.03% in dollar terms in February 2016 over February 2015.
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