Key benchmark indices were trading slightly higher in mid-morning trade. Mostly higher Asians stocks supported domestic bourses. The S&P BSE Sensex was up 31.21 points or 0.6%, up close to 60 points from the day's low and off about 65 points from the day's high. The market breadth, indicating the overall health of the market, was positive. Pharma stocks gained for the second straight day. Mindtree hit record high. Reliance Broadcast Network hit upper circuit of 5% for the second day in a row triggered by the company announcing its board will consider delisting proposal today, 18 September 2013. Wipro extended Tuesday's surge ahead of its entry in the 50-unit CNX Nifty next week.
The market edged higher amid initial volatility. Key benchmark indices pared initial gains and swung alternately between gains and losses near the flat line in morning trade. It hovered in the positive terrain in mid-morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 318.05 crore on Tuesday, 17 September 2013, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 31.21 points or 0.6% to 19,835.24. The index rose 96.65 points at the day's high of 19,900.68 in early trade, its highest level since 16 September 2013. The index fell 28.74 points at the day's low of 19,775.29 in morning trade.
The CNX Nifty was up 5.85 points or 0.1% to 5,855.95. The index hit a high of 5,877.90 in intraday trade, its highest level since 16 September 2013. The index hit a low of 5,840.20 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 963 shares rose and 673 shares fell. A total of 112 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks rose and rest of them fell. Wipro (up 1.8%), Coal India (up 1.36%) and Hindustan Unilever (up 1.37%), edged higher.
Pharma stocks gained for the second straight day. Cipla rose 1.99%.
Dr Reddy's Laboratories rose 2.16%, with the stock extending Tuesday's gain triggered by the company getting USFDA nod for Azacitidine for injection 100 mg/vial, a bioequivalent generic version of VIDAZA (azacitidine for injection). The launch of product in the US market is planned in the near term, the company said during trading hours on Tuesday, 17 September 2013. The VIDAZA brand had US sales of approximately $378.5 million for the twelve months ended July 2013, according to IMS Health data.
Ranbaxy Laboratories gained 1.52% to Rs 334.90, with the stock gaining for the second day in a row. The company said during market hours on Tuesday, 17 September 2013, that during late hours on Monday, 16 September 2013, the company received communication from the US Food and Drug Administration (USFDA) that the regulator had imposed an import alert on the company's Mohali facility. The USFDA also advised that the Mohali facility will be subject to certain terms of the Consent Decree signed in January 2012. Ranbaxy said it will review the details and will continue to fully cooperate with the USFDA and take all necessary steps to resolve the concerns at the earliest.
The USFDA had conducted inspections at Ranbaxy's Mohali facility in 2012, resulting in certain observations. The company believes that it has made further improvements at its Mohali facility since the last inspection in 2012, and remains committed to adressing all concerns of the USFDA. Ranbaxy is hopeful of an early resolution these concerns, the company said in a statement.
Ranbaxy remains fully committed to upholding the highest standards that patients, prescribers, regulators and all other stakeholders expect from the company. Ranbaxy stays firmly committed to its philosophy of 'Quality and Patients First,' it said in a statement.
Shares of Ranbaxy had tumbled 30.27% in a single trading session to settle at Rs 318.85 on Monday, 16 September 2013, after the USFDA issued an import alert against company's Mohali plant.
Lupin rose 0.27%, with the stock gaining for the second day in a row. The company announced after market hours on Monday, 16 September 2013 that it has received final approval for its Zolpidem Tartrate Extended release tablets USP, 6.25 mg and 12.5 mg from the United States Food and Drugs Administration (FDA) to market a generic version of Sanofi Aventis, U.S, LLC's (Sanofi) Ambien CR Extended release tablets, 6.25 mg and 12.5 mg. Lupin's wholly owned US subsidiary Lupin Pharmaceuticals Inc. (LPI) shall commence marketing the product shortly, the company said. Lupin's Zolpidem CR tablets 6.25 mg & 12.5 mg is the AB rated generic equivalent of Sanofi's Ambien CR Extended? release tablets, 6.25 mg and 12.5 mg and is indicated for the treatment of insomnia characterized by difficulties with sleep onset and/or sleep maintenance. Sanofi's Ambien CR Extended release tablets had annual US sales of approximately $366 million (IMS MAT Mar 2013).
But, Sun Pharmaceutical Industries declined 0.86%.
Wipro rose 1.36%, with the stock extending Tuesday's 5.41% surge ahead of its entry in the 50-unit CNX Nifty next week. Wipro becomes a part of the Nifty with effect from 27 September 2013. The IT major replaces Reliance Infrastructure in Nifty.
Mindtree rose 1.79% to Rs 1100.90 after hitting record high of Rs 1104.75 in intraday trade. The company after market hours on Monday, 16 September 2013, announced a partnership with SAP America to enable customers execute their Cloud strategies on SAP's cloud applications like SuccessFactors and mobile platforms.
Reliance Broadcast Network hit upper circuit of 5% at Rs 49.90, with the stock hitting 5% upper circuit for the second day in a row triggered by the company announcing its board will consider delisting proposal today, 18 September 2013. The company made the announcement after market hours on Monday, 16 September 2013.
Suzlon Energy rose 2.18% after the company said its UK-based subsidiary, REpower UK, signed four new turbine contracts in the UK. The company made the announcement before trading hours today, 18 September 2013.
Suzlon Energy said that REpower UK will be supplying turbines for new wind farms at Clashindarroch in Aberdeenshire, Scotland; Eye Airfield in Suffolk in the South East of Engliand; Hampole in Yorkshire and finally Westnewton located in Cumbria. Financial details were not disclosed.
Foreign direct investment inflows into India rose an annual 12.9% to $1.66 billion in July 2013, the government said in statement released late on Tuesday, the highest monthly inflow for three months.
Meanwhile, the Reserve Bank of India (RBI) reportedly cracked down on offshore foreign exchange trading by Indians through online trading websites, asking banks to report any such remittances to the regulator. In a circular issued late on Tuesday, the Reserve Bank of India (RBI) asked banks to advise customers not to undertake forex trading on foreign websites that offer currency contracts by accepting margins through credit card and online money transfer mechanisms. The RBI also asked banks to close the credit card or online bank account of a customer that is found to be in violation of the rule.
At its upcoming mid-quarter monetary policy review on Friday, 20 September 2013, the Reserve Bank of India will have to decide whether to give in to industry demands and lower interest rates in order to boost slowing economic growth, or leave interest rates unchanged for the third straight policy review as it guards against risks of a fresh rise in inflationary pressures.
Most Asian stocks rose in choppy trade on Wednesday, 18 September 2013, amid prospects the Federal Reserve will announce today whether it intends to pare back economic stimulus. Key benchmark indices in China, Hong Kong, Japan and Singapore rose by 0.06% to 1.14%. Key benchmark indices in Taiwan and Indoensia shed by 0.39% to 0.63%. South Korean stock markets were closed for a holiday.
Trading in US index futures indicated that the Dow could gain 10 points at the opening bell on Wednesday, 18 September 2013. US stocks rose slightly on Tuesday on expectations the Federal Reserve will make a modest cut in its stimulative bond buying and keep interest rates extraordinarily low. A report in the US on Tuesday showed the cost of living rose less than forecast in August, with the consumer-price index increasing 0.1%, the least in three months.
Investors across the globe are eyeing the two-day policy meeting of the Federal Open Market Committee (FOMC), considered by many to provide an indication on the timing and size of the Fed's cutbacks in its bond-purchase program. The FOMC's two-day policy meeting on interest rates in the United States ends today, 18 September 2013. The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years. Investors are also eyeing Fed's forward guidance on policy.
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