Key benchmark indices were trading in negative zone in morning trade. A bout of volatility was witnessed as key indices bounced back from the day's low to hit the day's high, only to slide in negative terrain yet again. The market breadth indicating the overall health of the market was turned negative from positive. The barometer index, the S&P BSE Sensex, was currently down 63.41 points or 0.23% at 27,822.80. The Sensex and the Nifty, both, hit their lowest levels in more than three weeks.
Pharmaceutical shares were mostly lower. Sun Pharmaceutical Industries slumped on high volumes on buzz that Japan's Daiichi Sankyo will reportedly sell its 8.9% stake in Sun Pharma via block deals in the stock market today. IT shares witnessed selling pressure. HCL Technologies tumbled after weak Q3 earnings.
Foreign portfolio investors sold shares worth a net Rs 1506.86 crore yesterday, 20 April 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 962.50 crore on yesterday, 20 April 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian stocks were firm today as China's latest step to prop up its faltering economy lifted global equities. US stocks rallied yesterday, 20 April 2015, posting their biggest advance in three weeks, as better-than-expected earnings from companies helped deliver a dollop of confidence to global-equity markets after a rout in stocks on Friday, 17 April 2015.
In the foreign exchange market, the rupee edged lower against the dollar to breach the 63 per dollar mark.
At 10:16 IST, the S&P BSE Sensex was down 63.41 points or 0.23% at 27,822.80. The index rose 90.72 points at the day's high of 27,976.93 in early trade. The index fell 135.78 points at the day's low of 27,750.43 in morning trade, its lowest level since 30 March 2015.
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The CNX Nifty was down 26.45 points or 0.31% at 8,421.65. The index hit a high of 8,469.35 in intraday trade. The index hit a low of 8,397.55 in intraday trade, its lowest level since 30 March 2015.
The BSE Mid-Cap index was down 0.25 points at 10,553.71. The BSE Small-Cap index was down 23.97 points or 0.21% at 11,345.62. The decline in both these indices was lower than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was turned negative from positive. On BSE, 1,013 shares fell and 926 shares rose. A total of 80 shares were unchanged.
Pharmaceutical shares were mostly lower. Dr. Reddy's Laboratories (down 2.42%), Divi's Laboratories (down 2.29%), Glenmark Pharmaceuticals (down 1.83%), Lupin (down 1.23%), Strides Arcolab (down 1.12%), Cipla (down 0.97%), Piramal Enterprises (down 0.43%), Aurobindo Pharma (down 0.22%) and Cadila Healthcare (down 0.07%), edged lower. IPCA Laboratories (up 0.38%), GlaxoSmithKline Pharmaceuticals (up 0.49%) and Wockhardt (up 0.62%), edged higher.
Sun Pharmaceutical Industries slumped 9.68% to Rs 943. The stock hit a high of Rs 976.15 and a low of Rs 933.10 so far during the day. On BSE, so far 70.10 lakh shares were traded in the counter, compared with an average volume of 2.22 lakh shares in the past one quarter.
As part of its strategy to exit India, Japanese pharmaceuticals company Daiichi Sankyo will reportedly sell its 8.9% stake in Sun Pharmaceuticals, worth Rs 22610 crore, in block deals in the stock market today.
Daiichi Sankyo yesterday, 20 April 2015, announced that its board approved selling a part or entire 9% holding worth over Rs 22,000 crore in Indian drug major Sun Pharmaceutical. Daiichi got around 9% stake in Sun Pharma following the merger of Ranbaxy Laboaratories with the Indian pharma major. After the sale, Daiichi Sankyo will not be a major shareholder of Sun Pharma. However, the existing business partnership with Sun Pharma will remain unchanged, the Japanese firm said in a statement.
IT shares witnessed selling pressure. MindTree (down 0.69%), Tech Mahindra (down 0.33%), MphasiS (down 0.32%), TCS (down 0.31%), Hexaware Technologies (down 0.22%) and CMC (down 0.12%), edged lower. Infosys (up 0.06%) and Oracle Financial Services Software (up 1.42%), edged higher.
HCL Technologies was down 7.26% to Rs 856.10 after weak Q3 outcome. The stock hit a high of Rs 871.50 and a low of Rs 834.10 so far during the day. As per US accounting standards, the company's consolidated net profit fell 12.2% to Rs 1683 crore on 0.2% fall in revenues to Rs 9267 crore in Q3 March 2015 over Q2 December 2014. The result was announced before market hours today, 21 April 2015.
Total Headcount stood at 104,184. The company made net addition of 3,944 employees during the quarter. HCL Technologies said broad based business growth witnessed across geographies, verticals and horizontals.
IT major Wipro was down 3.24% to Rs 556.30 ahead of its Q4 results today.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 63.0700, compared with its close of 62.9150 during the previous trading session.
Asian stocks were firm today as China's latest step to prop up its faltering economy lifted global equities. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Singapore and South Korea were up by 0.03% to 2.15%. Taiwan's Taiwan Weighted index was down 0.30%.
The People's Bank of China (PBOC) on Sunday, 19 April 2015, announced reduction in reserve requirement ratio (RRR) for all banks by 100 basis points to 18.5% to be effective from 20 April 2015. Meanwhile, China Securities Regulatory Commission (CSRC) on Saturday, 18 April 2015, stressed that there was no desire to suppress the hot stock market after unveiling a raft of measures on Friday, 17 April 2015, to curb margin trading. Meanwhile, the Shanghai and Shenzhen stock exchanges on Friday, 17 April 2015, issued rules that would make it easier for investors to short, or bet against, stocks. To short a stock, an investor borrows shares and sells them, hoping the price will fall and so allow them to repay with cheaper shares. It has been difficult to short stocks in China even as valuations soared because it has been virtually impossible to borrow shares.
US stocks rallied yesterday, 20 April 2015, posting their biggest advance in three weeks, as better-than-expected earnings from companies helped deliver a dollop of confidence to global-equity markets after a rout in stocks on Friday, 17 April 2015.
Meanwhile, global markets are closely monitoring developments with regard to Greece. Eurozone finance ministers are scheduled to hold a meeting on Friday, 24 April 2015, to discuss the state of negotiations between Greece and its international creditors. The country's Syriza-led government has been locked in negotiations with its international creditors since coming to power in late January, with progress slow. Greece needs to strike a deal within the next few months to secure billions of euros in bailout aid to avoid defaulting on its debts and potentially exiting the euro.
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