After a range bound movement in early afternoon trade, key benchmark indices extended gains in afternoon trade as battered European stocks recovered and trading in US index futures indicated a recovery in US stocks later in the global day. At 13:17 IST, the barometer index, the S&P BSE Sensex was up 161.38 points or 0.61% at 26,564.34. The gains for the Sensex were higher in percentage terms than those for the Nifty 50 index. The Nifty was currently up 42.60 points or 0.53% at 8,137.30.
The Sensex jumped 180.37 points or 0.68% at the day's high of 26,583.33 in afternoon trade, its highest level since 23 June 2016. The index lost 24.50 points or 0.09% at the day's low of 26,378.46 at the onset of trading session. The Nifty rose 51.65 points or 0.64% at the day's high of 8,146.35 in afternoon trade, its highest level since 23 June 2016. The index fell 7.85 points or 0.09% at the day's low of 8,086.85 at the onset of trading session.
The broad market depicted strength. There were more than two gainers against every loser on the BSE. 1,606 shares rose and 787 shares declined. A total of 164 shares were unchanged. The BSE Mid-Cap index was currently up 0.5%, underperforming the Sensex. The BSE Small-Cap index was currently up 0.93%, outperforming the Sensex.
In overseas stock markets, a recovery in the British pound against the dollar aided a rebound in European stocks. European stocks witnessed heavy losses in the preceding two trading sessions after the UK's vote to exit the European Union in a historic referendum on 23 June 2016. In UK, the FTSE 100 index was currently up 2.04%. The pound had witnessed a massive slide in the preceding two trading sessions in the wake of the UK's vote to leave the European Union.
Meanwhile, global credit rating agency Standard & Poor's Global Ratings yesterday, 27 June 2016, lowered its long-term foreign and local currency sovereign credit ratings on the United Kingdom to 'AA' from 'AAA' after Britain last week voted to leave the European Union in a historic referendum known as Brexit. S&P said that Brexit will weaken the predictability, stability, and effectiveness of policymaking in the UK and affect its economy, GDP growth, and fiscal and external balances. S&P said that the downgrade also reflects the risks of a marked deterioration of external financing conditions in light of the UK's extremely elevated level of gross external financing requirements. The vote for "remain" in Scotland and Northern Ireland also creates wider constitutional issues for the country as a whole. The outlook on the long-term rating is negative. The negative outlook reflects the risk to economic prospects, fiscal and external performance, and the role of sterling as a reserve currency, as well as risks to the constitutional and economic integrity of the UK if there is another referendum on Scottish independence, S&P said in a statement.
Trading in US index futures indicated a recovery for US stocks from a recent selloff triggered by the UK's decision to leave the European Union. Trading in US index futures indicated that the Dow Jones Industrial Average could jump 199 points at the opening bell today, 28 June 2016. US stocks registered heavy losses for the second trading session in a row yesterday, 27 June 2016, as investors continued to dump assets perceived as risky in the wake of the UK's vote last week to leave the European Union. Activity in the US services sector remained subdued in June, according to preliminary data released yesterday, 27 June 2016. In a report, market research group Markit said that its flash services purchasing managers' index (PMI) remained unchanged at 51.3 in June.
Most Asian stocks edged higher in an indication that markets were stabilizing in the wake of the UK's vote last week to leave the European Union.
Most pharmaceutical shares edged higher. IPCA Laboratories (up 4.25%), Lupin (up 2.68%), Strides Shasun (up 1.94%), Aurobindo Pharma (up 1.26%), Cipla (up 1.22%), Wockhardt (up 1.02%), Dr Reddy's Laboratories (up 0.91%), Divi's Laboratories (up 0.84%), Cadila Healthcare (up 0.73%), GlaxoSmithKline Pharmaceuticals (up 0.71%), Glenmark Pharmaceuticals (up 0.71%) and Alkem Laboratories (up 0.06%), edged higher. Sun Pharmaceutical Industries (down 0.01%), Biocon (down 0.34%) and Piramal Enterprises (down 0.49%), edged lower.
Shilpa Medicare rose 2.72% after the company's board of directors approved the amalgamation of Navya Biologicals with the company. The firm said that the indicative time period for the completion of merger in 7 to 8 months. The total consideration shall be paid by way of share swap of 14 lakh shares of Shilpa Medicare to be issued to the shareholders of Navya Biologicals (NBPL). NBPL, a company incorporated under the Companies Act, is engaged on research and development activities in the field of biologicals. NBPL has specifically been in the development of bio-similars and bioprocess technology platforms. The announcement was made after market hours yesterday, 27 June 2016.
RPG Life Sciences rose 4.51% after the company announced its foray into cosmetology, one of India's fastest growing markets. The company has entered into a technical collaboration with Italian cosmetic leader Labo Cospropher. The company is in-licensing two research-based products to be launched in the Indian cosmetic market this July, RPG Life Sciences said. A separate division has been created to market these unique products titled Crescina and Fillerina, specializing in hair-fall and anti-aging, respectively, the company said. Crescina is a research-based global product designed for hair-regrowth with nine patents worldwide. Fillerina is another breakthrough product designed for anti-aging treatment with Swiss patent. The announcement was made during market hours today, 28 June 2016.
FMCG shares were mixed. Hindustan Unilever (up 2.20%), Britannia Industries (up 2.08%), Tata Global Beverages (up 1.39%), Nestle India (up 0.77%), Procter & Gamble Hygiene & Health Care (up 0.16%) and Colgate Palmolive (India) (up 0.09%), edged higher. Godrej Consumer Products (down 0.18%), Marico (down 0.18%), Bajaj Corp (down 0.21%), Jyothy Laboratories (down 0.29%) and Dabur India (down 1.68%), edged lower.
Trent jumped 7.35% after the board of directors of the company at a meeting held today, 28 June 2016 approved 10-for-1 stock split. Trent said that the board of directors also approved an enabling resolution for raising of funds by issue of non-convertible debentures (NCDs) on a private placement basis upto an amount not exceeding Rs 300 crore. The announcement was made during market hours today, 28 June 2016.
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