Key benchmark indices were trading with modest gains in early afternoon trade as stocks staged a comeback after prior three-day fall. At 12:25 IST, the barometer index, the S&P BSE Sensex, was up 96.68 points or 0.29% at 33,800.27. The Nifty 50 index was up 19.05 points or 0.18% at 10,379.45. Today's upmove was triggered by gains in index pivotals TCS, ITC and Reliance Industries (RIL). Pharma shares declined. Realty stocks saw mixed trend.
Trading for the day began on a positive note as domestic stocks logged modest gains in early trade. Stocks trimmed gains in morning trade after an initial upmove. Stocks hovered in positive zone in mid-morning trade.
The S&P BSE Mid-Cap index was off 0.35%. The S&P BSE Small-Cap index was off 0.18%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,081 shares fell and 1,406 shares rose. A total of 117 shares were unchanged. Breadth was strong in early trade.
Reliance Industries (RIL) rose 0.88%. Eros International Media (Eros India) gained 6.63%. RIL and Eros International PLC (Eros) announced on 20 February 2018 that RIL, through a subsidiary, has agreed to subscribe to a 5% equity stake in NYSE listed Eros at a price of $15 per share, which represents an 18% premium to last closing price. The transaction is subject to customary regulatory and other approvals. The announcement was made after market hours yesterday, 20 February 2018.
Furthermore, RIL and Eros India announced that they have agreed to partner in India to jointly produce and consolidate content from across India. The parties will equally invest up to Rs 1000 crore in aggregate (approximately $150 million) to produce and acquire Indian films and digital originals across all languages.
Coal India slipped 0.55% after the Cabinet Committee on Economic Affairs, yesterday, 20 February 2018 approved opening up of commercial coal mining for private sector. This reform is expected to bring efficiency into the coal sector by moving from an era of monopoly to competition.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi yesterday, 20 February 2018, approved the methodology for auction of coal mines/blocks for sale of coal under the Coal Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957. The opening up of commercial coal mining for private sector is the most ambitious coal sector reform since the nationalisation of this sector in 1973.
Pharma shares declined. GlaxoSmithKline Pharmaceuticals (down 1.35%), Aurobindo Pharma (down 1.34%), Cadila Healthcare (down 0.33%), Cipla (down 0.77%), Glenmark Pharmaceuticals (down 0.1%), Lupin (down 0.1%), Alkem Laboratories (down 0.65%) and Wockhardt (down 0.87%) fell. Dr Reddy's Laboratories (up 1.15%) rose.
Sun Pharmaceutical Industries lost 5.26% on reports of USFDA inspection of its Halol plant in Gujarat. Halol is one of the biggest units of the company and is barred from new drug filings in the American market.
Biocon fell 1.72% after the company said its manufacturing facility in Malaysia received a Form 483 with six observations from the US drug regulator. The announcement was made before trading hours today, 21 February 2018.
The US Food and Drug Administration (USFDA) has completed a pre-approval inspection of the company's manufacturing facility in Malaysia and issued a Form 483 with 6 observations. As per the normal expectations of the agency, the company intends to respond with a corrective and preventive action plan in a timely manner.
Realty stocks saw mixed trend. Godrej Properties (up 0.95%), Prestige Estates Projects (up 1.9%), Indiabulls Real Estate (up 0.48%) and D B Realty (up 3.45%) rose. DLF (down 1.34%), Phoenix Mills (down 1.28%), Unitech (down 0.03%), Sobha (down 0.92%) and Oberoi Realty (down 0.38%) fell.
Housing Development and Infrastructure (HDIL) lost 1.81% after National Stock Exchange of India said that the contracts for new expiry months in the scrip will not be issued on expiry of existing contract months. The National Stock Exchange of India (NSE) in a circular dated 20 February 2018 said that the contracts for new expiry months in HDIL scrip will not be issued on expiry of existing contract months.
However, the existing unexpired contracts of expiry months February 2018, March 2018 and April 2018 would continue to be available for trading till their respective expiry and new strikes would also be introduced in the existing contract months, NSE said. Accordingly, no contracts shall be available for trading in HDIL with effect from 27 April 2018.
Steel Strips Wheels rose 2.23% after the company announced that it has secured export order from German original equipment manufacturer (OEM), BMW. SSWL's Chennai plant will supply approximately 46,000 steel wheels to BMW's Leipzig plant in Germany from the next financial year onwards. SSWL said it has been in strong business relationship with BMW since last 8 years. The announcement was made during trading hours today, 21 February 2018.
Overseas, most Asian stocks rose in choppy trading. Markets in China remained closed for the Lunar New Year holiday and will reopen tomorrow, 22 February 2018. Japanese manufacturing activity expanded at a slower pace in February as growth of new export orders slowed due to the yen's appreciation. The Flash Markit/Nikkei Japan Manufacturing Purchasing Managers Index (PMI) fell to a seasonally adjusted 54 in February from a final 54.8 in January.
US stocks snapped a six-day winning streak yesterday, 20 February 2018 with the Dow and S&P 500 weighed down by a steep loss for Walmart as investors also watched climbing bond yields, which could make equities less attractive at current levels.
The US Federal Reserve will today, 21 February 2018 release minutes of its Jan. 30-31 meeting, Janet Yellen's last as chair, where officials kept the rate unchanged.
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