Key benchmark indices trimmed some losses after hitting fresh intraday low in mid-morning trade. At 11:19 IST, the barometer index, the S&P BSE Sensex, was down 409.99 points or 1.49% at 27,107.69. The Nifty 50 index was down 139.30 points or 1.63% at 8,386.45. A sudden spike in US bond yields to a 10-month high rattled emerging equity markets.
The Sensex fell 438.22 points, or 1.59% at the day's low of 27,079.46 in mid-morning trade, its lowest level since 9 November 2016. The index fell 172.83 points, or 0.63% at the day's high of 27,344.85 in early trade. The Nifty fell 152.95 points, or 1.79% at the day's low of 8,372.80 in mid-morning trade, its lowest level since 9 November 2016. The index fell 65.15 points, or 0.76% at the day's high of 8,460.60 in early trade.
The broad market depicted weakness. There were more than four losers against every gainer on BSE. 1,842 shares fell and 416 shares rose. A total of 120 shares were unchanged. The BSE Mid-Cap index was currently down 2.56%. The BSE Small-Cap index was currently down 2.14%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
State-run ONGC was down 0.56% to Rs 274.35. The company announced during trading hours today, 11 November 2016, that ONGC Videsh and Petroleos De Venezuela S.A. (PDVSA) signed agreement for payment of dividend and financing of San Cristobal project.
ONGC Videsh and PDVSA through their relevant subsidiaries signed two definitive agreements for facilitating redevelopment of the San Cristobal joint venture project in Venezuela on 4 November 2016. San Cristobaproject (Project) is located in the Zuata Subdivision of proliferous Hugo Chavez Fria Orinoco Heavy Oil belt, in the Junin Norte Block in eastern Venezuela. The joint venture was incorporated in April 2008 consequent to a Memorandum of Understanding (MOU) signed in March 2005 at New Delhi to jointly develop Oil and Gas Exploration and Production Projects in Venezuela. ONGC Videsh has an equity interest of 40% in the Project with PDVSA holding the balance 60%.
The agreements provide for mechanism to liquidate ONGC Videsh's outstanding dividends from the Project while at the same time, ONOC Videsh needs, to obtain long term financing for the capital investments for implementing the Remediation Plan of the Project. The Remediation Plan aims to invigorate the production level of about 18,000 bbl/day to 27,000 bbl/day by the use of water flooding technique.
Cement shares edged lower. UltraTech Cement (down 5.11%), Ambuja Cements (down 3.29%) and ACC (down 3.17%), edged lower.
Grasim Industries was down 1.7%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Pharmaceutical shares declined. Piramal Enterprises (down 3.9%), Glenmark Pharmaceuticals (down 1.81%), Strides Shasun (down 1.78%), Cadila Healthcare (down 1.43%), Aurobindo Pharma (down 1.2%), Divi's Laboratories (down 1.05%), Lupin (down 1.04%), Dr Reddy's Laboratories (down 1.02%) and GlaxoSmithKline Pharmaceuticals (down 0.13%), edged lower. Alkem Laboratories (up 1.08%) and IPCA Laboratories (up 1.11%), edged higher.
Sun Pharmaceutical Industries rose 5.04% to Rs 700.55 after consolidated net profit surged 117.25% to Rs 2235.14 crore on 19.98% rise in total income to Rs 8384.52 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 10 November 2016.
Dilip Shanghvi, Managing Director of Sun Pharmaceutical Industries said that the synergies from the Ranbaxy acquisition are gaining momentum and the company is on track to achieve the targeted benefits. These synergies will continue to help in funding emerging specialty businesses. Post the close of Q2 September 2016, the company has further strengthened its branded ophthalmic pipeline through the acquisition of Ocular Technologies.
Cipla fell 1.05% to Rs 558.30. The company said before market hours today, 11 November 2016, that as part of its growth strategy, the board of the company's subsidiary, Cipla Quality Chemicals Industries (CiplaQCIL) is evaluating its initial public offering. The certain shareholders may consider selling down part or all of their stake to enable sufficient free flat and liquidity while Cipla group intends to continue holding the majority stake and control in CiplaQCIL.
Wockhardt fell 2.74% to Rs 792 after consolidated net profit fell 81.52% to Rs 17 crore on 13.34% decline in sales to Rs 1065 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 10 November 2016.
The company's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) dropped 49.74% to Rs 100 crore in Q2 September 2016 over Q2 September 2015. EBITDA margin declined to 9.4% in Q2 September 2016, from 16.2% in Q2 September 2015. Wockhardt's board of directors at its meeting held yesterday, 10 November 2016, approved the acquisition of 100% stake in Wockhardt France (Holdings) S.A.S. (WFH), an existing step down subsidiary of the company from Wockhardt Bio AG (WBG), a subsidiary of the company. By virtue of the acquisition, WFH shall become a direct wholly owned subsidiary of the company from erstwhile step down subsidiary. WBG continues to be a direct subsidiary of the company.
Talwalkars Better Value Fitness gained 1.46% after consolidated net profit rose 18% to Rs 29.1 crore on 11% rise in revenue to Rs 105.90 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 10 November 2016.
Talwalkars Better Value Fitness (TBVF) said that it has been able to sustain its margins at the same level inspite of cost pressures. Due to muted growth, the same store sales (SSS) in Q1 June 2016 remained flat but after the onset of monsoon the SSS was robust. The joint ventures and subsidiaries contributed higher than the earlier quarters. TBVF's earnings before interest, taxes, depreciation and amortization (EBITDA) margin rose to 53% in Q2 September 2016 from 52% in Q2 September 2015.
In overseas stock markets, most Asian shares edged lower as US bond yields soared on expectations US President-elect Donald Trump's policies would stoke inflation. Investors fear that a higher interest rates under incoming President Donald Trump will spark capital outflows from the emerging equity markets.
In US, the Dow Jones Industrial Average rallied to a record close yesterday, 10 November 2016, as investors continued to revise their strategies and reposition portfolios in response to Donald Trump's unexpected presidential election victory.
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