Stocks hovered in a small range in positive zone in early afternoon trade. At 12:19 IST, the barometer index, the S&P BSE Sensex, was up 47.43 points or 0.15% at 31,710.17. The Nifty 50 index was up 16.80 points or 0.17% at 9,946.70. Pharma shares dropped. Realty stocks fell.
Stocks drifted higher in early trade led by L&T and HDFC Bank. Key benchmark indices hovered in positive zone in morning trade. A bout of volatility was witnessed in mid-morning trade as stocks trimmed gains only to regain ground soon thereafter.
The S&P BSE Mid-Cap index was up 0.07%, underperforming the Sensex. The S&P BSE Small-Cap index was up 0.48%, outperforming the Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,216 shares rose and 1,132 shares fell. A total of 122 shares were unchanged.
Pharma shares dropped. Glenmark Pharmaceuticals (down 2.89%), Lupin (down 0.99%), Sun Pharmaceutical Industries (down 1.57%), Cadila Healthcare (down 1.65%), Alkem Laboratories (down 0.45%) and Wockhardt (down 0.52%) rose. Cipla (up 0.07%), GlaxoSmithKline Pharmaceuticals (up 0.48%) and Aurobindo Pharma (up 0.14%) rose.
Dr Reddy's Laboratories lost 3.32% after the company announced that on 7 September 2017, the Regulatory Authority of Germany (Regierung von Oberbayern), concluded an audit of the company's formulations manufacturing facility in Duvvada, Vishakapatnam, with zero critical and six major observations. Products manufactured at the facility are not currently exported to the European Union (EU). The announcement was made during market hours today, 7 September 2017.
The company said it will submit a Corrective and Preventive Action plan (CAPA) to the authorities. The auditor has cautioned that the facility will receive European Union Good Manufacturing Practice (EU-GMP) certification from the regulator upto November 2018 only when the Regulator approves the CAPA. The facility's compliance with the CAPA and other applicable regulations will be reviewed again by the regulator by the November 2018 for continuation of the facility's EU-GMP certification.
Realty stocks fell. Unitech (down 2.52%), Godrej Properties (down 1.52%), Prestige Estates Projects (down 0.51%), Oberoi Realty (down 1.17%), DLF (down 0.06%), Housing Development and Infrastructure (down 0.91%) and D B Realty (down 0.48%) fell. Indiabulls Real Estate (up 0.78%) and Sobha (up 1.42%) rose.
Biocon rose 3.06% after the company said that its insulin facility in Malaysia received compliance certificate. The announcement was made after market hours yesterday, 7 September 2017.
Biocon said its subsidiary in Malaysia, Biocon Sdn. Bhd., received a certificate of 'GMP (Good Manufacturing Practice) Compliance' for its Insulins manufacturing facility by the HPRA (Ireland) as the representative European inspection authority. The certificate of GMP compliance reflects that the agency considered the site to be in compliance with the principles and guidelines of Good Manufacturing Practices for active substances, sterile drug products and quality control testing operations. Biocon's Malaysia facility was inspected by the EMA (European Medicines Agency) in April 2017.
Ruchi Soya Industries lost 3.38% to Rs 22.90, with the stock dropping on profit booking after recent rally. Shares of Ruchi Soya Industries had jumped 23.11% in three trading sessions to settle at Rs 23.70 yesterday, 7 September 2017, from its close of Rs 19.25 on 4 September 2017.
Overseas, Asian stocks were trading on a mixed note as investors braced for damage that Hurricane Irma may inflict on Florida. China on Friday reported August exports were up 5.5% from a year ago in dollar terms, while imports were up 13.3% in dollar terms. China on Friday also reported August exports were up 6.9% in yuan terms while imports were up 14.4% in yuan terms from a year ago, Chinese customs data showed.
US stock indexes ended slightly lower yesterday, 7 September 2017 as investors sold financials, consumer-discretionary and telecommunication shares. On the data front, the number of Americans filing for unemployment benefits jumped to its highest level in more than two years last week amid a surge in applications in hurricane-ravaged Texas, but the underlying trend remained consistent with a firming jobs market.
Initial claims for state unemployment benefits soared by 62,000 to a seasonally adjusted 298,000 for the week ended Sept. 2, the highest level since April 2015, the Labor Department said on Thursday.
The European Central Bank (ECB) held interest rates steady at 0% on Thursday. ECB President Mario Draghi said the central bank would be prepared to make a decision on its quantitative easing program at its October meeting. For now, the central bank's net asset purchases of 60 billion euro a month would continue to the end of the year or beyond, if necessary, Draghi said.
Meanwhile, the threat from North Korea lingers. US President Donald Trump said it's not inevitable that the US will wind up in a war with North Korea over its continued development of nuclear weapons, though military action remains an option. Pyongyang may test a missile this weekend to coincide with its founding day on 9 September 2017.
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