Key benchmark indices remained firm in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex rose 193.17 points or 0.61% at 31,789.23. The Nifty 50 advanced 63.75 points or 0.65% at 9,920.80. Most of the gains on indices were contributed by jump in IT index heavyweight Infosys following announcement of an overhaul of its board of directors. Meanwhile, geopolitical tensions eased after the government reportedly said India and China agreed to disengagement at Doklam area.
After opening with modest gains, key indices extended gains in morning trade. Stocks hovered in the positive terrain later during the session.
The S&P BSE Mid-Cap index rose 1.05%. The S&P BSE Small-Cap index advanced 0.95%. Both these indices outperformed the Sensex.
The broad market depicted strength. There were almost two gainers against every loser on BSE. 1,536 shares rose and 783 shares fell. A total of 134 shares were unchanged.
Cement stocks gained. ACC (up 2.2%), Shree Cement (up 2.65%), Ambuja Cements (up 1.51%), and UltraTech Cement (up 1.03%) gained.
Grasim Industries advanced 0.77%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Pharma stocks rose. Sun Pharmaceutical Industries (up 2.95%), Aurobindo Pharma (up 1.6%), Cipla (up 0.99%), Lupin (up 0.31%), Wockhardt (up 0.81%), Divi's Laboratories (up 4.09%), Glenmark Pharmaceuticals (up 0.77%) and Cadila Healthcare (up 1.63%) gained.
Dr Reddy's Laboratories lost 1.79% after the company said a law firm representing a purported investor in the company filed a purported class action lawsuit against the company. The announcement was made during market hours today, 28 August 2017.
Dr Reddy's Laboratories said that on 25 August 2017, a law firm representing a purported investor in the company, filed a purported class action lawsuit against the company, its CEO, and CFO, in the United States District Court for the District of New Jersey alleging violations of the US federal securities laws. The plaintiff in the lawsuit purports to represent a class of investors who purchased or otherwise acquired the company's publicly traded shares on the New York Stock Exchange between 17 June 2015 through 10 August 2017.
The lawsuit alleged that the company made materially false and/or misleading statements or omissions in connection with its corporate quality system, and specifically in connection with a warning letter from the US Food and Drug Administration dated 6 November 2015, and a letter from the Regierung von Oberbayem in Germany dated 10 August 2017. The lawsuit sought damages to compensate the purported class of investors for a purported decline in the company's share price allegedly caused by the alleged misstatements or omissions.
Dr Reddy's said it has not yet been served with the lawsuit. Dr Reddy's added that it cannot comment on the specific allegations in the pending litigation other than to state that the company believes the asserted claims to be without merit. The company will respond to the allegations after it has been served with the lawsuit and as and when it may be required to do so by the Court, Dr Reddy's said in a statement.
Separately, the company announced during market hours today, 28 August 2017, that it has launched Cefixime for Oral Suspension, USP 100 mg/5mL and 200 mg/5mL, a therapeutic equivalent generic version of Suprax (cefixime) for Oral Suspension, approved by the US Food and Drug Administration (USFDA).
The Suprax brand and generic had US sales of around $50.5 million MAT for the most recent twelve months ending in June 2017 according to IMS Health. Suprax is a registered trademark of Astellas Pharma Inc.
Kiri Industries rose 3.35% after consolidated net profit rose 26.9% to Rs 103.68 crore on 6.8% decrease in net sales to Rs 272.64 crore in Q1 June 2017 over Q1 June 2016. The result was announced on Friday, 25 August 2017. When market remained closed for Ganesh Chaturthi.
Adani Enterprises jumped 8.41% on reports the company plans to begin work in October to build the controversial Carmichael coal project in Australia. According to media reports, the Carmichael coal project has been delayed for years by court challenges from environment protection groups and indigenous groups concerned about climate change, and the impact on native land and water supply, but those challenges have been rejected.
The company plans to make first shipment of coal from its Australia mine in March 2020. Adani, which uses coal to generate electricity for its power business in India, is reportedly trying to line up funding for the project by March 2018. Accommodation at the Carmichael camp reopened last week, setting the company on course to start work on the mine and rail project, reports said.
Meanwhile, the government reportedly said India and China agreed to disengagement at Doklam area, close to northeast border. Beijing and New Delhi had been locked in the Doklam standoff for some time.
Meanwhile, NITI Aayog's 3-year Action Agenda was reportedly unveiled by the Union Finance Minister Arun Jaitley, along with Minister of State for Petroleum and Natural Gas Dharmendra Pradhan and NITI Aayog Vice Chairman Arvind Panagariya. The Action Agenda is an integral part of the 15-year Vision Document of India being drafted by the NITI Aayog. Think-tank NITI Aayog's three-year action plan (2017-2020) has suggested shifting the composition of expenditures by allocating a larger proportion of additional revenues that become available over time to high-priority sectors. It has replaced the 5-year plan of the erstwhile Planning Commission and would be soon followed by a 15-year vision document and a 7-year strategy document.
Overseas, Asian stocks were mixed after US and European central bankers didn't provide fresh policy guidance. US stock benchmarks finished with slight gains on Friday, 25 August 2017, halting weekly skids as European Central Bank President Mario Draghi and Federal Reserve Chairwoman Janet Yellen delivered speeches at Jackson Hole, Wyo.
Yellen said the economy was stabilizing but made no specific remarks about monetary policy during her speech at the gathering of central bankers in Wyoming. Later Friday, Draghi said recoveries taking place in global economies are firming, though he said it was "at an earlier stage" in Europe and Japan.
Also at the Jackson Hole symposium, Bank of Japan Governor Haruhiko Kuroda said the recent pace of growth in the world's third-largest economy is probably unsustainable and pledged to continue with very accommodative monetary policy for some time because the BOJ is far from its inflation target.
The consumer price index for Japan in July 2017 was at 100.1, up 0.4% over the past year and the same level as the previous month on a seasonally adjusted basis.
New orders for manufactured durable goods in July decreased by $16.7 billion or 6.8% to $229.2 billion, the US Census Bureau announced.
On the geopolitical front, North Korea fired three ballistic missiles over the weekend and Secretary of State Rex Tillerson said on Sunday, 27 August 2017 that the US will continue to push for negotiations to deescalate nuclear tensions on the Korean peninsula despite the provocative acts.
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