Trading for the week started on a weak note as key benchmark indices edged lower as investors maintained caution ahead of Reserve Bank of India's second bi-monthly policy review meeting tomorrow, 7 June 2016. The barometer index, the S&P BSE Sensex declined 65.58 points or 0.24% at 26,777.45, as per the provisional closing data. The Nifty 50 index shed 16.25 points or 0.2% at 8,204.55, as per the provisional closing data. After hovering within a narrow range around the flat line for the most part of the trading session, key indices trimmed losses after extending losses and hitting fresh intraday low in late trade.
The Sensex fell 113.49 points or 0.427% at the day's low of 26,729.54 in late trade, its lowest level since 2 June 2016. The Sensex rose 58.39 points or 0.21% at the day's high of 26,901.42 at the onset of the trading session. The Nifty shed 34.75 points or 0.42% at the day's low of 8,186.05 in late trade, its lowest level since 2 June 2016. The index rose 13.90 points or 0.16% at the day's high of 8,234.70 at the onset of the trading session.
In overseas markets, European stocks edged higher and most Asian stocks rose today, 6 June 2016 after US nonfarm payrolls data showed the slowest job growth in more than five years, quashing expectations for a near-term US interest rate hike by the US Federal Reserve.
US stocks fell on Friday, 3 June 2016 after data showed that US employers in May added the fewest jobs in more than five years. The Labor Department said on Friday, 3 June 2016 that nonfarm payrolls rose by 38,000 in May, the weakest performance since September 2010. Federal Reserve Governor Lael Brainard on Friday, 3 June 2016 called for the central bank to wait for more data before lifting interest rates as she said the jobs report shows the labor market has slowed. The Federal Open Market Committee next undertakes monetary policy review on 14-15 June 2016. The US central bank had lifted rates in December 2015 for the first time in nearly a decade.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,454 shares fell and 1,188 shares rose. A total of 129 shares were unchanged. The BSE Mid-Cap index provisionally fell 0.09%. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index provisionally rose 0.22%, outperforming the Sensex.
Most pharma stocks declined as rupee edged higher against the dollar. Glenmark Pharmaceuticals (down 3.22%), Aurobindo Pharma (down 1.27%), and Dr Reddy's Laboratories (down 0.27%) declined. Cipla rose 0.62%. Divi's Laboratories was flat. Firmness in rupee adversely impacts sales of pharma companies in rupee terms as they derive substantial revenue from exports.
Lupin declined 2.28%. Lupin announced that its US subsidiary, Gavis Pharmaceuticals LLC., has received final approvals for its Voriconazole Tablets, 50 mg & 200 mg and Voriconazole Oral Suspension, 40 mg/mL from the United States Food and Drug Administration (FDA), Voriconazole Tablets, 50 mg & 200 mg and Voriconazole Oral Suspension, 40 mg/mL are the AB rated generic equivalent of PF Prism C.V's Vfend Tablets, 50 mg & 200 mg and Vfend Oral Suspension, 40 mg/mL. Lupin shall commence promoting the products in the US shortly. It is indicated for use in patients 12 years of age and older in the treatment of some fungal infections. Vfend Tablets, 50mg & 200mg had annual US sales of $92.8 million as per IMS MAT March 2016 data while Vfend Oral Suspension, 40 mg/mL had annual US sales of $15.9 million as per IMS MAT March 2016 data. The announcement was made during market hours today, 6 June 2016.
Sun Pharmaceutical Industries declined 1.92%. The company announced that as a part of its manufacturing consolidation in the US, one of its wholly owned subsidiaries has entered into an agreement with Frontida BioPharm, Inc (Frontida) for divestment of its two oral solid dosage manufacturing facilities located at Philadelphia, PA, and Aurora, IL both in the US, along with 15 related pharmaceutical products.
In connection with the transaction, Frontida has agreed to continue manufacturing certain products for Sun Pharma at these facilities on a contract basis for a predetermined period. It has also agreed to offer employment to all production, quality and administrative personnel at the sites. During the divestment process, Sun Pharma was cognizant about ensuring the continued supply of quality products to patients and protecting the interests of its employees working in these units, the company said. The impact of this development on Sun Pharma's consolidated financials and operations is not material, the company said. Sun Pharma did not disclose other details of the transaction. The announcement was made on Saturday, 4 June 2016.
Cadila Healthcare rose 1.03% after the company announced on Saturday, 4 June 2016, that the United States Food and Drug Administration (USFDA) approved the company's plan to initiate a phase 2 clinical trial of Saroglitazar in patients with non-alcoholic Steatohepatitis (NASH) of the liver. This randomized, double-blind phase 2 trial will evaluate Saroglitazar 1mg, 2mg and 4mg Vs. Placebo. The announcement was made on Saturday, 4 June 2016.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 66.975, compared with closing of 67.26 during the previous trading session.
Bharat Heavy Electricals (Bhel) rose 0.08% after the company announced that it has commissioned all the three supercritical units of 660 megawatts (MW) each at the 1980 MW coal based Lalitpur Super Thermal Power Project (STPP) in Uttar Pradesh within a span of 85 days. The Lalitpur STPP has been developed by Lalitpur Power Generation Company (LPGCL), promoted by Bajaj Hindusthan Group. All the three units have been synchronised by Bhel 3 to 4 months ahead of the schedule agreed between LPGCL and Bhel. The announcement was made during market hours today, 6 June 2016.
IT major TCS dropped 0.74% as the stock turned ex-dividend today, 6 June 2016 for the final dividend of Rs 27 per share for the year ended 31 March 2016 (FY 2016).
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