Key indices came off day's high in morning trade. At 10:27 IST, the barometer index, the S&P BSE Sensex, was up 153.61 points or 0.41% at 37,839.98. The Nifty 50 index was up 34.15 points or 0.31% at 11,223.35.
The S&P BSE Mid-Cap index was down 0.14%. The S&P BSE Small-Cap index was fell 0.30%.
The market breadth was negative. On the BSE, 810 shares rose and 900 shares fell. A total of 87 shares were unchanged.
Axis Bank (up 0.23%), Hero MotoCorp (down 2.06%), Tech Mahindra (down 0.38%), will announce their Q1 June 2019 results today.
Auto stocks were mixed. Hero MotoCorp (down 1.8%), Ashok Leyland (down 1.19%), Tata Motors (down 0.84%), Bajaj Auto (down 0.71%) and Maruti Suzuki India (down 0.42%) declined.
TVS Motor Company (up 0.72%), Mahindra & Mahindra (up 0.42%), Eicher Motors (up 0.18%) and Escorts (up 0.06%) advanced.
Pharma stocks rose. Lupin (up 4.21%), Aurobindo Pharma (up 4.06%), Glenmark Pharmaceuticals (up 2.71%), Sun Pharmaceutical Industries (up 2.05%), Wockhardt (up 1.98%), Cipla (up 1.31%), Cadila Healthcare (up 1.3%), Divi's Laboratories (up 0.94%), Alkem Laboratories (up 0.9%), GlaxoSmithKline Pharmaceuticals (up 0.57%) and IPCA Laboratories (up 0.56%) advanced.
Dr Reddy's Laboratories gained 0.89%. The drug maker's consolidated net profit rose 42.1% to Rs 676.50 crore on 3.3% increase in net sales to Rs 3843.60 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 29 July 2019.
In a separate announcement, the company announced that the board of directors has approved an amalgamation of Dr. Reddy's Holdings (DRHL) an entity held by the promoter group, which holds 24.88% equity shares of Dr. Reddy's Laboratories (DRL), into the company. The scheme would lead to simplification of the shareholding structure and reduction of shareholding tiers. The promoter group cumulatively will continue to hold the same number of shares in the Company, pre and post the amalgamation.
The company has also announced the appointment of Erez Israeli as the chief executive officer (CEO) - key managerial personnel (KMP) of the company with effect from 1 August 2019.
Strides Pharma Science jumped 11.32%. On a consolidated basis, the company reported net profit of Rs 6.73 crore in Q1 June 2019 compared with net loss of Rs 2.18 crore in Q1 June 2018. Net sales rose 45.1% to Rs 685.80 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 29 July 2019.
In a separate announcement yesterday, Strides Pharma Science announced that its step down subsidiary Strides Pharma Global, Singapore (SPG) has entered into a joint venture (JV) with Sun Moral International (HK), a wholly-owned subsidiary of Sihuan Pharmaceutical Holdings Group (Sihuan), one of China's leading pharmaceutical companies. The JV fast tracks Strides' entry into China, the second-largest pharmaceutical market in the World offering a $137 billion (IQVIA) market opportunity.
Sanofi India lost 1.68%. The company's net profit fell 2.2% to Rs 97.40 crore on a 9.4% rise in the net sales to Rs 747.90 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 29 July 2019.
Shalby rallied 15.11%. On a consolidated basis, Shalby's net profit rose 96.7% to Rs 23.62 crore on a 13.4% rise in the net sales to Rs 131.44 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 29 July 2019.
Insecticides (India) rose 1.15%. The company announced after market hours yesterday, 29 July 2019, that the Government of India, The Patent Office has granted the patent for an insecticidal combination and process thereof which covers "Suspension Concentrate (Sc) Formulation Comprising Buprofezin and Fipronil" for the term of 20 years from 2 December 2014 (date of filling). The combination is sold by the company under the brand name "Aikido".
Jain Irrigation Systems fell 5.82%. Fitch Ratings has downgraded India-based micro-irrigation company Jain Irrigation Systems' (JISL) long-term issuer default ratings (IDR) to 'CCC-' from 'B-' and the rating on $200 million 7.125% senior unsecured notes due in 2022 to 'CCC-' from 'B-' with a recovery rating of 'RR4'. The ratings are on rating watch negative (RWN).
The downgrade reflects Fitch's view that JISL's liquidity risk has increased significantly over the last few months since 31 March 2019, as the company has indicated that its available liquidity has reduced to Rs 2 billion at present (including around Rs 0.5 billion of cash and equivalents), from Rs 11.9 billion at FYE19. This has increased the uncertainty that JISL has the means to service its debt, Fitch said.
Overseas, most Asian stocks were trading higher as investors await developments from U.S.-China trade talks this week in Shanghai as well as monetary policy decisions from major central banks.
US stocks finished mixed Monday, with declines in financials and communication-discretionary sectors preventing the S&P 500 and Nasdaq from scoring fresh record closes.
Investors are watching for signs of progress toward a trade deal, but expectations for a breakthrough are low. Face-to-face trade talks between China and U.S. officials are reportedly set to resume Tuesday in Shanghai, marking the first such meeting on tariffs since President Donald Trump and China's President Xi Jinping met on the sidelines of the Group of 20 gathering in Osaka, Japan, in June.
The US Fed kicks off its two-day policy meet later today, where it is widely anticipated to cut benchmark rates by at least 25 basis points to combat headwinds from the China-U.S. trade dispute and signs of slowing economic growth outside of the U.S.
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