Key benchmark indices extended intraday losses in mid-morning trade. The S&P BSE Sensex was down 102.29 points or 0.49%, up 23.71 points from the day's low and off 91.50 points from the day's high. Weakness in Asian stocks dampened investor sentiment. In the foreign exchange market, the rupee edged lower against the dollar on demand for greenbacks by state-run oil refiners and on weakness in domestic equities.
Hindalco Industries reversed initial gain in volatile trade. L&T extended intraday fall. Shares of pharmaceutical firm Wyeth were locked at 20% upper circuit and Pfizer jumped sharply after both these companies announced scheduling of separate board meeting on 23 November 2013 to consider merger of the two pharmaceutical companies. Ranbaxy Laboratories gained after the company said it is celebrating its 20th anniversary in Ukraine. The market breadth, indicating the overall health of the market, was positive.
Realty stocks extended Tuesday's gain. Adani Ports and Special Economic Zone advanced after credit rating firm ICRA upgraded the long-term rating for the Rs 800-crore long term bank facility of Adani Petronet (Dahej) Port (APPPL).
Key benchmark indices cut losses after a lower start triggered by weak Asian stocks. Key benchmark indices extended intraday losses in mid-morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1014.61 crore on Tuesday, 19 November 2013, as per provisional data from the stock exchanges.
At 11:15 IST, the S&P BSE Sensex was down 102.29 points or 0.49% to 20,788.53. The index lost 126 points at the day's low of 20,764.82 in mid-morning trade, its lowest level since 18 November 2013. The index declined 10.79 points at the day's high of 20,880.03 in early trade.
The CNX Nifty was down 29.55 points or 0.48% to 6,173.80. The index hit a low of 6,165.10 in intraday trade, its lowest level since 18 November 2013. The index hit a high of 6,198.70 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,112 shares gained and 899 shares fell. A total of 121 shares were unchanged.
The total turnover on BSE amounted to Rs 703 crore by 11:20 IST, compared to Rs 456 crore by 10:20 IST.
Among the 30-share Sensex pack, 20 stocks declined and rest of them gained.
Hindalco Industries fell 1.37% to Rs 122.30, with the stock reversing initial gain in volatile trade. The stock hit a hit of Rs 125 and low of Rs 122 so far during the day.
L&T slipped 1.27% to Rs 981.20, with the stock extending intraday fall.
Shares of pharmaceutical firm Wyeth were locked at 20% upper circuit at Rs 776.80. Pfizer jumped 9.16% to Rs 1,469.50 after hitting a 52-week high of Rs 1,523 in intraday trade. Both these companies have announced scheduling of separate board meeting on 23 November 2013 to consider merger of the two pharmaceutical companies. The announcement was made before market hours today, 20 November 2013.
Ranbaxy Laboratories (Ranbaxy) rose 1.07%. The company during market hours today, 20 November 2013, said it is celebrating its 20th anniversary in Ukraine. Establishing its operation in the Ukraine market in 1993, Ranbaxy is today the No. 1 player in the target market segment with key brands such as Cifran (Ciprofloxacin), Zanocin (Ofloxacin) and Ketanov (Ketorolac) and a market share of 10.3% as per Morion, MAT Q3, 2013.
The Ukraine pharmaceutical retail market is estimated at around $3.7 billion (Morion, MAT Q3, 2013) and is growing at a CAGR of around 15%.
Arun Sawhney, CEO & Managing Director, Ranbaxy said: "Ranbaxy has been providing high quality, affordable generic medicines to the citizens of Ukraine for the last two decades, thereby supporting the Government to bring down healthcare costs. We remain committed to the Ukraine market and its people and will continue to operate from our paradigm of Quality and Patients First".
Alok Batra, MD, Ranbaxy Ukraine said: "The Ukraine pharmaceutical market is driven by generics and there is immense potential for growth. We have strong professional team with established brands in the market and most of brands rank amongst the top three in their respective segments. In the coming years, we will be introducing more products in the CVS, GI, OTC, Anti-Infectives etc. segments to benefit doctors and patients in Ukraine".
Many ohter pharma shares declined. Cipla (down 1.35%), Dr Reddy's Laboratories (down 0.27%), Sun Pharmaceutical Industries (down 0.32%), Lupin (down 0.36%), Glenmark Pharmaceuticals (down 0.54%), declined.
Adani Ports and Special Economic Zone (APSEZL) advanced after credit rating firm ICRA upgraded the long-term rating for the Rs 800-crore long term bank facility of Adani Petronet (Dahej) Port (APPPL). The stock was up 2.33%. Shares of Petronet LNG rose 0.26%. APPPL is a special purpose joint venture company between the Adani Ports and Special Economic Zone and Petronet LNG (PLL). It was incorporated on in January 2003 for the purpose of financing, development, operation and maintenance of Solid Cargo Port Terminal (SCPT) at Dahej. APSEZL holds 74% stake and PLL holds the reamining 26% stake in APPPL (as per the shareholding patter as on 31 December 2010).
ICRA said that the rating upgrade takes into account the strong ramp-up of cargo for the year FY 2013, with the port handling around 7.5 million tonnes of cargo, significantly higher than the full year cargo of FY 2012 of 2.14 million tonnes. The growth in volume has resulted in a sharp growth in top line, along with healthy profitability levels. The positive outlook factors in ICRA's expectation that the company's cargo volumes would continue to show healthy growth in the near term notwithstanding weak macro-economic environment, because of its competitive position. The port continues to benefit from mechanization, leading to high discharge rates in the range of over 40,000 tpd, along with adequate back-up facility. ICRA also notes the company has availed foreign currency loans, and has also opted for Principal only Swap (POS) on the underlying Rupee Term Loans, since it has natural hedge because of dollar denominated marine income. Though this has benefitted the company in terms of lowering its cost of borrowing, it exposes the company to timing risk in relation to long term foreign currency loan and derivatives, ICRA said.
The rating continues to factor in the favorable characteristics of the port location, which provides proximity to cargo consumption centres in Northern and North-Western India (primarily Gujarat, Madhya Pradesh, Maharashtra & Rajasthan); the deep draft enabling handling of large vessels; and the all-weather conditions. The rating also factors in the strength of the principal promoter APSEZL as well as the presence of a strong entity like PLL as a 26% equity partner, with adequate board representation, thereby strengthening the governance structure for the company, ICRA said.
Realty stocks extended Tuesday's gain. DLF (up 2.01%), HDIL (up 2.6%), Indiabulls Real Estate (up 0.65%), Unitech (up 0.57%), Oberoi Realty (up 1.99%) and Sobha Developers (up 0.63%) gained.
In the foreign exchange market, the rupee edged lower against the dollar on demand for greenbacks by state-run oil refiners and on weakness in domestic equities. The partially convertible rupee was hovering at 62.54, compared with its close of 62.36/37 on Tuesday, 19 November 2013.
On the political front, an unprecedented 78.50% of the nearly 1.40 crore electors voted in the second phase of polling for the Assembly elections in Chhattisgarh on Tuesday, 19 November 2013. The first phase of elections in the 90-member assembly on 11 November 2013 had seen polling of 75.53%.
Asian shares declined on Wednesday, 20 November 2013, on caution ahead of the release of the minutes from the US Federal Reserve's last meeting, possibly providing clues to the timing of its plan to slow monetary stimulus to the US economy. Key benchmark indices in Taiwan, China, Japan, Indonesia, Singapore and South Korea fell by 0.08% to 0.88%. Hong Kong's Hang Seng index rose 0.41%.
Bank of Japan Governor Haruhiko Kuroda and his board gather for a two-day policy meeting starting today, 20 November 2013.
Trading in US index futures indicated a flat opening of US stocks on Wednesday, 20 November 2013. US stocks pulled back on Tuesday, 19 November 2013, as investors weighed rising valuations and disappointing earnings forecasts.
Later in the day, the Federal Reserve is slated to release the minutes from its last meeting, possibly providing clues to the timing of its plan to slow monetary stimulus. The minutes will be from the October 29-30 meeting.
Federal Reserve Chairman Ben S. Bernanke on Tuesday, 19 November 2013, said the central bank's main interest rate will probably remain near zero for a considerable time after asset purchases end. Bernanke said the Fed is committed to highly accommodative policies, echoing recent comments from other Fed officials including Janet Yellen, who has been nominated to succeed him. The labor market has shown meaningful improvement since the Fed's bond-buying program started, Bernanke said in remarks prepared for a speech to economists in Washington. A "preponderance of data" would be needed to begin removing accommodation, he said. Benchmark interest rates may remain low perhaps well after the jobless rate falls below the Fed's 6.5% threshold, he said.
The US central bank buys $85 billion of Treasuries and mortgage-backed securities each month to put downward pressure on borrowing costs.
The Organization for Economic Cooperation and Development cut its global growth forecasts on Tuesday, 19 November 2013, citing a slowdown in developing nations. The world economy will probably expand 2.7 percent this year and 3.6 percent in 2014, instead of the 3.1 percent and 4 percent predicted in May, the Paris-based OECD said in a semi-annual report.
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