Key benchmark indices further extended gains and hit fresh intraday high in mid-afternoon trade. At 14:30 IST, the barometer index, the S&P BSE Sensex, was up 90.75 points or 0.29% at 31,186.45. The Nifty 50 index was up 16.35 points or 0.17% at 9,632.75. Hopes of an interest rate cut by the Reserve Bank of India after the release of latest economic data boosted sentiment on the domestic bourses.
Stocks drifted higher in early trade taking a lead from firm Asian stocks and as retail inflation and industrial output data released after market hours yesterday, 12 June 2017 back home boosted expectations of an interest rate cut by the Reserve Bank of India (RBI) at its next policy meeting in August 2017. Key indices extended gains as the day's trade progressed with higher European stocks further providing momentum to the domestic bourses.
The S&P BSE Mid-Cap index was up 0.41%. The S&P BSE Small-Cap index was up 0.82%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,479 shares rose and 1,134 shares fell. A total of 157 shares were unchanged.
Most pharma shares fell. Cadila Healthcare (down 0.93%), Glenmark Pharmaceuticals (down 0.81%), Alkem Laboratories (down 0.33%), GlaxoSmithKline Pharmaceuticals (down 0.22%), Aurobindo Pharma (down 0.63%) and Wockhardt (down 0.32%) fell. Lupin (up 1.96%), Cipla (up 0.12%), Dr Reddy's Laboratories (up 0.08%), gained.
Sun Pharmaceutical Industries rose 1.15% after the company said one of its wholly-owned subsidiaries received US drug regulator's approval for generic Zetia tablets. The announcement was made before trading hours today, 13 June 2017.
Sun Pharmaceutical Industries announced that one of its wholly-owned subsidiaries has received final approval from US Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for generic version of Zetia, (ezetimibe) tablets 10mg. These generic ezetimibe tablets are therapeutic equivalents of Merck's Zetia tablets.
As per IMS, ezetimibe tablets had annual sales of approximately $2.7 billion in the US for the 12 months ended April 2017. Zetia is used to help lower cholesterol in the blood.
Metal and mining stocks saw mixed trend. Vedanta (down 1.29%), Steel Authority of India (Sail) (down 0.52%), NMDC (down 0.96%), Hindustan Copper (down 0.23%) edged lower.
JSW Steel (up 0.23%), Tata Steel (up 0.27%), National Aluminium Company (up 0.03%), Hindustan Zinc (up 1.5%), Jindal Steel & Power (up 0.53%), Hindalco Industries (up 0.52%) rose.
Copper edged lower in the global commodities market. High Grade Copper for July 2017 delivery was currently off 0.63% at $2.5990 per pound on the COMEX.
Muthoot Finance rose 3% to Rs 461.70 on reports a domestic brokerage has recommended buy on the stock for 2-3 quarters for a target of Rs 506-546. The domestic brokerage reportedly said that gold loan companies even after the recent run up quote at a discount in terms of price to average book value compared to other categories of non-banking finance companies (NBFCs) like housing finance, personal/durable finance, micro finance.
Expectation of good monsoon this year could trigger larger demand for gold loans across the country especially in the south, the brokerage said.
Vesuvius India rose 0.72% after net profit rose 26.2% to Rs 23.43 crore on 27.6% increase in net sales to Rs 227.38 crore in Q1 March 2017 over Q1 March 2016. The result was announced after market hours yesterday, 12 June 2017.
On the macro front, the index of industrial production (IIP) rose by 3.1% in April led by robust growth in electricity generation, data showed yesterday, 12 June 2017. IIP grew by 6.5% in April last year. The CSO also revised upwards the IIP growth figure for March to 3.75% from its provisional estimate of 2.7%. While presenting the March 2017 data, the IIP base year was revised from 2004-05 to 2011-12.
Another data released yesterday, 12 June 2017, showed that retail price inflation, as measured by the consumer price index (CPI), slowed to 2.18% in May from 2.99% in April 2017 as food prices started falling from their year-ago level. Inflation is now well below the Reserve Bank of India's (RBI) medium-term target of 4%, and at the lower end of its CPI projection of 2%-3.5% in the first half of the fiscal year.
Overseas, European and Asian stocks gained as investors took a cautiously optimistic stance ahead of a U.S. Federal Reserve policy meeting that could provide cue on the pace of rate hikes in the months to come. Major US stock-market benchmarks closed lower yesterday, 12 June 2017 weighed by a second straight session of firm losses in technology shares.
The US Federal Reserve will meet Tuesday and Wednesday, and investors expect the central bank to raise interest rates for the third time since December. Super-low unemployment, gains in factory output and other economic data pointing to a recovery in the US economy have led investors to believe that the Fed will lift rates.
Meanwhile, the Trump administration yesterday, 12 June 2017 proposed a wide-ranging rethinking of the rules governing the US financial sector in a report that makes scores of recommendations that have been on the banking industry's wish list for years.
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