Key benchmark indices extended losses and hit fresh intraday low in afternoon trade after the latest data showed acceleration in headline inflation November 2013. The barometer index, the S&P BSE Sensex, was down 58.97 points or 0.28%, up about 5 points from the day's low and off close to 110 points from the day's high. The market breadth, indicating the overall health of the market, was negative. In the foreign exchange market, the rupee edged higher against the dollar. Weakness in Asian stocks also dampened sentiment.
Capital goods pivotals were mixed. Most pharma stocks dropped. Shares of Indian units of MNCs rose as an open offer for GlaxoSmithkline Pharmaceuticals by its overseas parent raised expectations that foreign parents of other listed Indian units of MNCs may at some stage take similar course.
The barometer index, the BSE Sensex, hit its lowest level in more than two weeks and the 50-unit CNX Nifty hit 1-1/2-week low at the onset of the trading session. Key benchmark indices alternately swung between positive and negative zone near the flat line in mid-morning trade as investors awaited data on inflation based on the wholesale price index for November 2013. A bout of volatility was witnessed as key benchmark indices trimmed intraday losses after the latest data showed acceleration in headline inflation November 2013. The Sensex extended losses and hit fresh intraday low in afternoon trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 432.02 crore on Friday, 13 December 2013, as per provisional data from the stock exchanges.
At 13:20 IST, the S&P BSE Sensex was down 58.97 points or 0.28% to 20,656.61. The index fell 61.85 points at the day's low of 20,653.73 in afternoon trade, its lowest level since 29 November 2013. The index rose 48.94 points at the day's high of 20,764.52 in morning trade.
The CNX Nifty was down 13.50 points or 0.22% to 6,154.90. The index hit a high of 6,183.25 in intraday trade. The index hit a low of 6,150.85 in intraday trade, its lowest level since 4 December 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,279 shares dropped and 962 shares rose. A total of 150 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks declined and rest of them gained. Tata Steel (down 1.72%) M&M (down 1.64%) and RIL (down 1.58%) declined.
TCS rose 1.34%. TCS said during market hours that it has fully integrated the ICT infrastructure of Royal Haskoning and DHV in a record time of six months. Royal Haskoning and DHV merged in 2012 under the new name Royal HaskoningDHV. Due to the swift and successful integration, TCS has been upgraded to strategic partner for Royal HaskoningDHV.
TCS announced earlier during the day that CUA, Australia's largest customer-owned financial institution, has implemented TCS BaNCS to reengineer its core banking and online banking system. The new solution expands CUA's capability to deliver more flexible and innovative products and services to customers. TCS BaNCS will also enable CUA to improve internal processes and efficiencies as well as facilitate enhanced customer service.
Capital goods pivotals were mixed. Bharat Heavy Electricals (Bhel) dropped 0.86%. L&T rose 1.48%.
Most pharma stocks dropped. Cipla (down 0.38%), Lupin (down 0.18%), Ranbaxy Laboratories (down 1.36%) and Sun Pharmaceutical Industries (down 1.66%) declined.
Dr Reddy's Laboratories rose 0.3%.
GlaxoSmithkline Pharmaceuticals jumped 18.7% to Rs 2,930.10. The scrip hit record high of Rs 2,952 in intraday trade. GlaxoSmithKline Pte along with GlaxoSmithkline plc today, 16 December 2013, announced a voluntary open offer to the public shareholders of GlaxoSmithkline Pharmaceuticals to acquire 2.06 crore equity shares, representing 24.33% stake of the total voting share capital of the company, at Rs 3,100 per share, at a premium of 25.58% over the closing price of GlaxoSmithkline Pharmaceuticals' shares on Friday, 13 December 2013.
GlaxoSmithkline plc currently holds 50.67% stake in GlaxoSmithkline Pharmaceuticals. Its stake will rise to 75% if it gets the entire 2.06 crore equity shares through the voluntary open offer. The hike in stake will cost the overseas parent about Rs 6389 crore.
Aurobindo Pharma jumped 7.1% to Rs 331.85, after hitting a record high of Rs 332.35 in intraday trade. The stock extended Friday's 3.99% gains triggered by the company receiving the final approval from USFDA to manufacture and market a generic medicine in the United States.
Aurobindo Pharma during trading hours on Friday, 13 December 2013 said it has received the final approval from the US Food & Drug Administration (USFDA) to manufacture and market Duloxetine Hydrochloride Delayed-Release Capsules 20mg (base), 30mg (base) and 60mg (base) which was earlier tentatively approved.
Duloxetine Hydrochloride Delayed-Release Capsules 20mg (base), 30mg (base) and 60mg (base) are the generic equivalent of Eli Lilly & Company's Cymbalta Delayed-Release Capsules 20mg (base), 30mg (base) and 60mg (base). Duloxetine Hydrochloride Delayed-Release Capsules are indicated for the treatment of for the treatment of major depressive disorder (MDD) and falls under the Neurological (CNS) therapeutic category. According to IMS data, the market size of the product is estimated to be $5.4 billion for the twelve months ended September 2013.
Aurobindo now has a total of 188 abbreviated new drug application (ANDA) approvals (163 final approvals including 7 from Aurolife Pharma LLC and 25 tentative approvals) from USFDA.
Shares of Indian units of MNCs rose as an open offer for GlaxoSmithkline Pharmaceuticals by its overseas parent raised expectations that foreign parents of other Indian units of MNCs may at some stage take similar course.
Merck, Fulford (India), 3M India, Astrazeneca Pharma India, Linde India, Hitachi Home & Life Solutions India, Goodyear India, Ingersoll-Rand (India), Siemens, Bosch, Honeywell Automation India, Federal-Mogul Goetze (India), Pfizer, Monsanto India, Oracle Financial Services Software, DIC India and Ricoh India rose 0.27% to 5.62%.
Inflation based on the wholesale price index (WPI) accelerated to 7.52% in November 2013, from 7% in October 2013, data released by the government today, 16 Deceber 2013, showed. WPI for September 2013 was revised upwards to 7.05% from 6.46% reported earlier. Build up inflation rate in the financial year so far was 6.7% compared to a build up rate of 4.84% in the corresponding period of the previous year.
Data released by the government last week showed that inflation based on the consumer price index (CPI) stood at a record 11.24% last month.
The Reserve Bank of India (RBI) announces Mid-Quarter Review of Monetary Policy for 2013-14 on Wednesday, 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
In the foreign exchange market, the rupee reversed initial losses against the dollar. The partially convertible rupee was hovering at 62.03, compared with its close of 62.125/135 on Friday, 13 December 2013.
The Central Board of Direct Taxes (CBDT) on Friday, 13 December 2013, extended the time limit for payment of the December installment of Advance Tax by two days from 15 December 2013 to 17 December 2013. This was done in view of the fact that 15 December 2013 was a Sunday.
Asian stocks edged lower on Monday, 16 December 2013, after a gauge of Chinese manufacturing fell and as investors awaited a Federal Reserve meeting this week to gauge the timing of stimulus cuts. Key benchmark indices in Taiwan, Hong Kong, China, Singapore, South Korea, Japan and Indonesia fell by 0.09% to 1.62%. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.
The HSBC Holdings Plc/Markit Economics preliminary manufacturing purchasing managers' index for China fell to 50.5 in December from 50.8 in November. Readings above 50 signal expansion.
Japan's quarterly Tankan index for large manufacturers rose to the highest since 2007, climbing to 16 from 12 in September, according to the Bank of Japan. Positive figures indicate optimists outnumber pessimists.
The Bank of Japan (BoJ), which buys more than 7 trillion yen ($67.6 billion) of Japanese Government Bonds (JGBs) every month in its bid to stoke inflation, holds a two-day monetary policy meeting on 19 and 20 December 2013.
Trading in US index futures indicated that the Dow could slide 41 points at the opening bell on Monday, 16 December 2013. US stocks made a mild rebound Friday but ended the week lower, as investors looked toward a Federal Reserve meeting next week that could start the curtailment of the Fed's equities-boosting stimulus program.
The Federal Open Market Committee's (FOMC) two-day policy meeting on interest rates in the United States begins tomorrow, 17 December 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.
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