Key benchmark indices edged higher in early trade on higher Asian stocks. The barometer index, the S&P BSE Sensex, was up 172.80 points or 0.69%, up about 95 points from the day's low. The market breadth indicating the overall health of the market was strong.
ONGC gained after the company said that its board has approved the proposal for redevelopment of its giant offshore field Mumbai High (North) involving a capital investment of Rs 5706.47 crore. Cipla edged higher after the company said it has signed a definitive agreement to acquire a 51% stake in a pharmaceuticals manufacturing and distribution business in Yemen.
Reliance Communications (RCom) gained after the company said it has raised approximately Rs 4808 crore from a qualified institutional placement. Torrent Pharmaceuticals (TPL) and Elder Pharmaceuticals, both, edged higher after Torrent Pharmaceuticals announced the completion of acquisition of Elder's branded domestic formulations business in India and Nepal on a slump sale basis. Reliance Capital rose after the company said that the management is continuously engaged in discussions with various international players for potential strategic partnerships in relation to its business.
At 9:30 IST, the S&P BSE Sensex was up 172.80 points or 0.69% to 25,272.72. The index jumped 176.32 points at the day's high of 25,276.24 in early trade. The index rose 79.63 points at the day's low of 25,179.55 in opening trade.
The CNX Nifty was up 61.25 points or 0.82% to 7,570.05. The index hit a high of 7,573.50 in intraday trade. The index hit a low of 7,531.60 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,047 shares gained and 297 shares fell. A total of 45 shares were unchanged.
The BSE Mid-Cap index was up 68.55 points or 0.74% at 9,273.72, outperforming the Sensex. The BSE Small-Cap index was up 61.67 points or 0.62% at 10,083.96, underperforming the Sensex.
Cipla rose 0.86% to Rs 442.90. The company said before market hours that it has signed a definitive agreement to acquire a 51% stake in a pharmaceuticals manufacturing and distribution business in Yemen. Given the recent preference to local manufacturing, the acquisition secures Cipla's presence in a fast growing market in Yemen. Cipla already has a leading position in Yemen with over 200 products. Cipla will pay $21 million for this transaction, with additional considerations to be paid over the next 3 years on achievement of agreed milestones. The closing of the transaction is subject to completion of certain conditions precedent.
ONGC gained 1.25% to Rs 416.20 after the company said after market hours on Friday, 27 June 2014, said that its board has approved the proposal for redevelopment of its giant offshore field - Mumbai High (North) involving a capital investment of Rs 5706.47 crore which includes foreign exchange component of Rs 4421.76 crore. The implementation of the project will lead to incremental gain of 6.997 million tonne (MMT) crude oil and 5.253 billion cubic metres (BCM) gas by 2030. This project is designed to carry forward the success of the previous two editions of redevelopment projects and give a new lease of life to the giant field which is so vital for the economy of the country, ONGC said. The capital expenditure includes creation of surface facilities for Rs 2586.42 crore, new oil and gas wells for Rs 1992.11 crore and sidetracking of existing wells for Rs 1127.94 crore.
ONGC's board has also taken note of a new pool discovery at Gandhar which has already been notified to DGH. This new pool discovery in GS-6B sand in the south western part of Gandhar field opens up the sector for further field growth, ONGC said. With this, ONGC has notified 5 new discoveries during the financial year 2014-15, ONGC said in a statement.
Reliance Capital rose 0.38% to Rs 637.35 after the company said that the management is continuously engaged in discussions with various international players for potential strategic partnerships in relation to its business. The company issued the clarification after media reports last week said that Japanese financial services giant Sumitomo Mitsui Trust Holdings Inc may buy a 10% stake for $400 million in Reliance Capital.
GAIL (India) fell 0.01% to Rs 456.05. The company clarified after market hours on Friday, 27 June 2014, that loss in revenue is expected to be nominal from the incidence of blast at the company's Tatipaka-Kondalpalli gas pipeline in Andhra Pradesh on Friday, 27 June 2014. Fire at the pipeline has been extinguished on the same day, GAIL (India) said. GAIL (India) is covered under Public Liability Insurance upto Rs 15 crore per annum and Industrial Insurance upto Rs 400 core per annum. Insurance is taken for the gas in the pipelines. However, insurance for pipeline is not taken as per company's policy.
Separately, the Ministry of Petroleum & Natural Gas on Friday, 27 June 2014, announced relief measures for people affected by the gas pipeline blast which includes financial compensation to be paid by GAIL (India).
Reliance Communications (RCom) gained 0.02% to Rs 146.10 after the company said after market hours on Friday, 27 June 2014, that the qualified institutional placement (QIP) Committee of the Board of Directors of the company at its meeting held on 27 June 2014 has closed the QIP issue and approved the issuance of 33.82 crore shares to Qualified Institutional Buyers (the QIBs) at an issue price of Rs 142.14 per share, including a premium of Rs 137.14 per share, aggregating approximately Rs 4808 crore. The issue had opened on 24 June 2014.
Torrent Pharmaceuticals (TPL) rose 1.49% to Rs 713 after the company said before market hours that the company has completed the acquisition of Elder Pharmaceuticals' (Elder) branded domestic formulations business in India and Nepal on a slump sale basis. This transaction was in pursuance of the Business Transfer Agreement entered into between TPL and Elder on 13 December 2013.
Shares of Elder Pharmaceuticals gained 1.27% to Rs 215.10.
Asian stocks edged higher on Monday, 30 June 2014 ahead of packed week of economic data that will test investor hopes for a pick up in the US and global economy. Key benchmark indices in Hong Kong, Indonesia, China, South Korea and Taiwan were up 0.24% to 0.73%. Key benchmark indices in Japan and Singapore were off 0.17% to 0.33%.
US stocks ended modestly higher on Friday, 27 June 2014, led by technology shares, though downbeat second-quarter and full-year forecasts from DuPont Co kept a lid on gains.
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