Key benchmark indices hovered in the negative terrain near the flat line in mid-afternoon trade. Losses were small. At 14:20 IST, the barometer index, the S&P BSE Sensex was down 34.36 points or 0.13% at 26,808.67. The Nifty 50 index was currently down 8.30 points or 0.1% at 8,212.50. Key indices hovered within a narrow range around the flat line so far during 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, 1,316 shares fell and 1,187 shares rose. A total of 131 shares were unchanged. The BSE Mid-Cap index was currently up 0.04%. The BSE Small-Cap index was currently up 0.35%. Both these indices outperformed the Sensex.
Shares of power generation and power distribution companies were mixed. NTPC (down 0.51%), Power Grid Corporation of India (down 0.53%), Torrent Power (down 0.06%), Adani Power (down 1.85%), and NHPC (down 2.43%) declined. Tata Power Company (up 0.88%), Reliance Infrastructure (up 2.13%) and Reliance Power (up 0.89%) gained.
PSU coal miner Coal India dropped 0.92%.
Most pharma stocks declined as rupee edged higher against the dollar. Glenmark Pharmaceuticals (down 2.96%), Aurobindo Pharma (down 1.34%), and Dr Reddy's Laboratories (down 0.22%) declined. Cipla (up 0.89%) and Divi's Laboratories (up 1.39%) gained. Firm rupee adversely impacts sales of pharma companies in rupee terms as they derive substantial revenue from exports.
Lupin declined 1.14%. 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 0.59%. 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 1.35% 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 66.9525, compared with closing of 67.26 during the previous trading session.
Redington India lost 6.65% to Rs 103.80 after a huge bulk deal of 2.56 crore shares was executed on the scrip at Rs 107 per share at 10:51 IST on BSE today, 6 June 2016.
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