Key benchmarks trimmed gains in mid-afternoon trade. At 14:24 IST, the barometer index, the S&P BSE Sensex, was up 136.39 points or 0.36% at 37,802.19. The Nifty 50 index was up 28 points or 0.25% at 11,417.45. Pharma shares saw mixed trend.
Volatility struck bourses in early trade as the key benchmark indices trimmed almost entire gains after a higher start triggered by positive Asian stocks. Stocks hovered with small gains in morning trade. Fresh buying pushed the key benchmark indices higher in early afternoon trade. Key benchmark indices extended gains and hit fresh intraday high in afternoon trade with the Sensex and the Nifty, both, scaling record highs.
The S&P BSE Mid-Cap index was off 0.08%. The S&P BSE Small-Cap index was up 0.10%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, turned negative from positive in mid-afternoon trade. On the BSE, 1300 shares rose and 1354 shares fell. A total of 143 shares were unchanged.
Pharma shares saw mixed trend. Cadila Healthcare (up 0.56%), Cipla (up 0.21%), Sun Pharmaceutical Industries (up 0.48%), Alkem Laboratories (up 0.29%), GlaxoSmithKline Pharmaceuticals (up 1.34%) and Wockhardt (up 1.46%) rose.
Lupin (down 3.97%), Dr Reddy's Laboratories (down 0.62%) and Aurobindo Pharma (down 1.07%) fell.
Glenmark Pharmaceuticals fell 0.89%. Glenmark Pharmaceuticals said its partner Elite Pharmaceuticals, Inc., a US specialty pharmaceutical company, has received approval from the US Food and Drug Administration (USFDA) for the abbreviated new drug application (ANDA) for methadone hydrochloride 5 mg and 10 mg tablets. The announcement was made after market hours yesterday, 7 August 2018.
Methadone is indicated for the management of pain severe enough to require daily, around-the-clock long-term opioid treatment and for which alternative treatment options are inadequate. Methadone can also be used for maintenance treatment of opioid addiction (heroin or other morphine-like drugs) in conjunction with appropriate social and medical services.
Glenmark Pharmaceuticals, Inc., Elite's marketing alliance partner, will sell and distribute methadone for Elite for which Elite will receive manufacturing and license fees. Based on QuintilesIMS Health data, the annual retail sales for the brand and generic products were approximately $30 million.
GOCL Corporation rose 0.26% after the company said it received an order from Singareni Collieries Company, a PSU of Telangana State, worth Rs 203.09 crore for supply of explosives and accessories over a period of 2 years. The announcement was made after market hours yesterday, 7 August 2018.
On the macro front, the International Monetary Fund (IMF) reportedly said on Wednesday that India's central bank will need to gradually tighten monetary policy further due to rising inflation, driven mainly driven by higher oil prices and a falling rupee. The average inflation is likely to rise to 5.2% in 2018-2019 from a 17-year low of 3.6% in the previous fiscal year, the IMF said. It said inflationary pressures were also exerted by a pick up in domestic demand and recent hike in procurement prices of major crops by the government, as it seeks to win support from farmers ahead of national elections next year.
Overseas, most European shares were trading higher as investor kept a close eye on corporate earnings and trade tensions.
Asian equities were mixed as investors looked past protectionism tussles and instead focused on US stocks approaching fresh all-time highs. China's trade surplus narrowed to 176.96 billion yuan ($25.91 billion) in July, from a surplus of 261.9 billion yuan the previous month, official data showed Wednesday China's exports in July grew 6% from a year earlier in yuan terms, following a 3.1% increase in June. Imports for July surged 20.9% in yuan terms from a year earlier, compared with a 6% increase in June.
Trade tensions remain in focus after the Trump administration said it will impose 25% tariffs on $16 billion in Chinese imports starting on 23 August 2018. The administration already placed tariffs on $34 billion of Chinese goods last month but delayed on the additional tariffs to hear from US companies.
US stocks closed higher Tuesday as investors continued to brush aside anxiety over the trade war between the US and China and instead focus on positive corporate earnings.
On the economic-data front, the latest report from the Labor Department showed there were 6.66 million job openings at the end of June, up fractionally from May's levels and the third highest in history.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
