Key benchmark indices hovered in negative terrain in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, was down 47.32 points or 0.14% at 33,683.87. The Nifty 50 index was down 14.15 points or 0.14% at 10,437.65. Pharmaceutical shares witnessed selling pressure.
Indices opened higher on positive global cues. Trading turned volatile as key indices hit fresh intraday low in mid-morning trade, sharply reversing trend after hitting fresh intraday high in early trade. The Sensex reversed trend in morning trade after hitting record high level in early trade. Buying soon emerged at lower levels, helping key indices pare losses after hitting fresh intraday low in mid-morning trade.
The Sensex rose 134.76 points, or 0.40% at the day's high of 33,865.95 in early trade, its record high level. The index fell 148.81 points, or 0.44% at the day's low of 33,582.38 in mid-morning trade. The Nifty rose 33.95 points, or 0.32% at the day's high of 10,485.75 in early trade. The index fell 57.15 points, or 0.55% at the day's low of 10,394.65 in mid-morning trade.
Among secondary barometers, the BSE Mid-Cap index was down 0.42%. The BSE Small-Cap index was down 0.16%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,557 shares fell and 1,003 shares rose. A total of 109 shares were unchanged. Breadth was strong in early trade.
Pharmaceutical shares witnessed selling pressure. Strides Shasun (down 2.04%), Divi's Laboratories (down 1.59%), Piramal Enterprises (down 1.5%), Wockhardt (down 1.09%), Aurobindo Pharma (down 0.77%), Glenmark Pharmaceuticals (down 0.73%), Alkem Laboratories (down 0.72%), GlaxoSmithKline Pharmaceuticals (down 0.63%), Sun Pharmaceutical Industries (down 0.47%), Dr Reddy's Laboratories (down 0.41%), Cadila Healthcare (down 0.38%) and Lupin (down 0.2%), edged lower. IPCA Laboratories was up 3.44%.
Drug major Cipla was down 1.46%. The company will announce Q2 results today, 7 November 2017.
Biocon was up 0.55% after the company announced that its partner Mylan has resubmitted the biosimilar trastuzumab and pegfilgrastim dossiers with the European Medicines Agency. The announcement was made before market hours today, 7 November 2017.
Biocon said that its partner Mylan has resubmitted the marketing authorization applications for their proposed biosimilar trastuzumab and pegfilgrastim with the European Medicines Agency as per the administrative protocol. This follows the earlier withdrawal of both applications in response to the audit of the company's aseptic drug product facility by the designated European authority. Biocon has completed the corrective and preventive actions, including the facility modifications, in response to the audit observations and expects these to be verified during re-inspection.
Most power generation stocks declined. Jaiprakash Power Ventures (down 5.1%), Adani Power (down 4.35%), Reliance Infrastructure (down 3.24%), GMR Infrastructure (down 2.45%), JSW Energy (down 2.32%), Reliance Power (down 1.59%), Tata Power (down 1.23%) and CESC (down 0.63%), edged lower. NTPC (up 0.45%), NHPC (up 1.22%) and Torrent Power (up 3.11%), edged higher.
State-run Coal India was down 0.59%. State-run Power Grid Corporation of India was down 1.21%.
L&T Infotech gained 2.20% to Rs 828.90 after consolidated net profit rose 2.2% to Rs 273 crore on 4.8% rise in revenue to Rs 1750.80 crore in Q2 September 2017 over Q1 June 2017. Earnings before interest, tax, depreciation and amortization (EBITDA) margin remained steady at 16.8% in Q2 September 2017 compared with Q1 June 2017. The result was announced after market hours yesterday, 6 November 2017.
On macro front, the government announced on Monday, 6 November 2017, a multi-agency investigation headed by the Central Board of Direct Taxes (CBDT) chairman, after media reports leaked financial documents called the Paradise papers that show alleged offshore dealings of 714 Indian individuals and entities. The government said the multi-agency group would also have representatives from the Enforcement Directorate, the Reserve Bank of India and the Financial Intelligence Unit.
A collective of international journalists obtained the Paradise Papers from Bermuda-based offshore law firm Appleby and Singapore's business consulting company Asiaciti. The Finance Ministry said that the investigation units of the Income Tax Department have been alerted to take note of revelations for immediate appropriate action.
Overseas, Asian shares were trading higher after Wall Street rose and turmoil in Saudi Arabia sent crude prices to two-year highs. Japan's Nikkei 225 ended with strong gains. Nikkei opened lower but later rose to the highest level since January 1992 as foreign investors chased the market higher on hopes for strong earnings from Japan Inc.
US stocks rose moderately Monday, helping the three main stock benchmarks to close at all-time highs. Healthy corporate earnings and merger talks between chip makers Broadcom and Qualcomm kept stocks in positive territory despite unsettling political developments in Saudi Arabia. The S&P 500 index rose 0.13%, the Dow Jones Industrial Average rose 0.04% and the Nasdaq Composite Index advanced 0.33%.
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