A bout of initial volatility was witnessed as key benchmark indices weakened once again after recovering from a lower opening. Investors refrained from building large positions ahead of the Reserve Bank of India's mid-quarter policy review at 11:00 IST today, 20 September 2013. The S&P BSE Sensex was down 27.45 points or 0.13%, up close to 65 points from the day's low and off about 30 points from the day's high. The market breadth, indicating the overall health of the market, was negative.
Metal stocks edged lower in early trade. Ranbaxy Laboratories dropped after the company said that its US based wholly owned subsidiary has received a Paragraph IV Certification Notice of filing from Watson Laboratories Inc. of an Abbreviated New Drug Application (ANDA) to the US Food and Drug Administration (FDA) for a generic version of Absorica (isotretinoin capsules), a product that is licensed from Cipher Pharmaceuticals Inc. (Cipher) of Mississauga, Ontario.
At 9:30 IST, the S&P BSE Sensex was down 27.45 points or 0.13% to 20,619.19. The index declined 94.75 points at the day's low of 20,551.89 in early trade. The index rose 2.74 points at the day's high of 20,649.38 in early trade.
The CNX Nifty was down 4.20 points or 0.07% to 6,111.35. The index hit a high of 6,120.25. The index hit a low of 6,087.95 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 542 shares declined and 523 shares rose. A total of 59 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks fell and rest of them rose. ONGC (down 1.09%), ICICI Bank (down 1.05%) and Hero MotoCorp (down 1.02%), edged lower.
Metal stocks edged lower in early trade. JSW Steel (down 0.98%), Tata Steel (down 0.77%), Sail (down 0.2%), Jindal Steel & Power (down 1.9%), Hindalco Industries (down 0.55%), and Sesa Goa (down 1.48%), declined.
Tata Steel fell 0.81%. The company after market hours on Thursday, 19 September 2013, announced a new leadership structure and a series of executive appointments, as part of its drive to accomplish its strategic business objectives. The board of Tata Steel has appointed Mr. T V Narendran as MD Designate, India and South East Asia and has inducted him as Additional Director on the Board. On reaching superannuation on 31 October 2013, Mr. H M Nerurkar, MD Tata Steel India and South East Asia will step down from the Board of Tata Steel and will be succeeded by Mr. T V Narendran from 1 November 2013. Mr. Narendran is currently VP (Safety & Flat Products) Tata Steel.
The board has also appointed Mr. Koushik Chatterjee, ED and Group CFO as the Group Executive Director (Finance and Corporate). In addition to maintaining responsibility for the company's finance function, Mr. Chatterjee will be responsible for the Tata Steel Group Corporate functions including Legal and Regulatory Affairs, Corporate Communications, Strategic Procurement, Information Systems, Group Investments, Global Mining Projects and Assurance.
The Board has put in place appropriate governance process to ensure a smooth transition of leadership. With effect from 1 November 2013, Dr Karl Koehler, MD & CEO, Tata Steel Europe, Mr. TV Narendran, MD Tata Steel India and South East Asia, and Mr. Koushik Chatterjee Group, Executive Director (Finance and Corporate), will report to the Chairman and the Board of Tata Steel. The new leadership team will be responsible for defining the overall direction and strategy for Tata Steel across both its emerging and developed markets.
Ranbaxy Laboratories dropped 4.28% after the company said after market hours on Thursday, 19 September 2013, that Ranbaxy Laboratories Inc. (RLI), a wholly owned subsidiary of Ranbaxy Laboratories, has received a Paragraph IV Certification Notice of filing from Watson Laboratories Inc. of an Abbreviated New Drug Application (ANDA) to the US Food and Drug Administration (FDA) for a generic version of Absorica (isotretinoin capsules), a product that is licensed from Cipher Pharmaceuticals Inc. (Cipher) of Mississauga, Ontario.
RLI and Cipher intend to vigorously defend Absorica's intellectual property rights and pursue all available legal and regulatory pathways in defense of the product, RLI said in a statement. Absorica is currently protected by two issued patents listed in the FDA's Approved Drug Products List (Orange Book), which expire in September 2021. RLI shall take appropriate actions in response to the Paragraph IV notice letter, and FDA approval of the ANDA shall then be governed by the Hatch-Waxman Act, RLI said. Absorica was approved by the FDA in May 2012, and granted a three-year market exclusivity period, which expires in May 2015.
The Reserve Bank of India (RBI) will announce its monetary policy decision under new Governor Raghuram Rajan at 11:00 IST today, 20 September 2013. This will be followed by RBI Governor addressing the media in the afternoon. The central bank is widely expected to keep its key policy rate viz. the repo rate unchanged at 7.25%. However, hopes have risen that the Reserve Bank of India will scale back some of its cash tightening steps.
Bond prices fell ahead of the monetary policy decision. The yield on the benchmark federal paper 7.16% GS 2023 was hovering at 8.21%, higher than its close of 8.1926% on Thursday, 19 September 2013. Bond yield and bond prices are inversely related.
In the foreign exchange market, the rupee edged lower against the dollar after Thursday's rally triggered by US Federal Reserve's surprise decision to keep its $85-billion-a-month in bond purchases intact. The partially convertible rupee was hovering at 62.15, lower than its close of 61.77/78 on Thursday, 19 September 2013.
Asian stocks edged lower on Friday, 20 September 2013, after their strong gains in the previous session. Key benchmark indices in Japan, Indonesia and Singapore were off 0.17% to 1.23%. Stock markets in Mainland China, Hong Kong, Taiwan and South Korea were closed for a holiday. Asian stocks had surged on Thursday, 19 September 2013, after the Federal Reserve unexpectedly refrained from reducing stimulus measures after a monetary policy review on Wednesday, 18 September 2013, saying it wants more evidence of an economic recovery before paring its $85 billion-a-month in bond purchases.
US stocks on Thursday mostly fell, with benchmark indexes retreating from record highs that came with the Federal Reserve's unexpected decision not to begin cutting stimulus.
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