Key indices clock decent gains on signs of stability in global markets
Stocks from IT and pharmaceutical sectors and oil exploration and production firms led the latest upmove for the two key benchmark indices amid signs of stability in global financial markets. The barometer index, the S&P BSE Sensex, rose 267.35 points or 1.14% to settle at 23,649.22. The 50-unit Nifty 50 index rose 83.30 points or 1.17% to settle at 7,191.75. The two key benchmark indices witnessed intraday volatility. The Sensex and the Nifty, both, hit their highest closing level in more than a week.
Shares of oil exploration and production (E&P) companies rose on surge in crude oil prices. Dr Reddy's Laboratories moved higher, with the stock extending previous trading session's gains triggered by the company's announcement of share buyback plan. Cipla nudged higher after the company announced that its UK arm has completed the transaction to acquire two US-based companies. Quick Heal Technologies made a dismal debut on the bourses.
In overseas stock markets, Japan and Hong Kong led gains in Asian markets triggered by a rally on Wall Street overnight. In Japan, the Nikkei 225 Average ended 2.28% higher. In Hong Kong, the Hang Seng index ended 2.32% higher. European stocks edged higher in volatile trade ahead of the release of the minutes of the European Central Bank's most recent policy meeting due later in the day. US stocks registered strong gains yesterday, 17 February 2016, as the minutes from the US Federal Reserve's January policy meeting suggested that policy makers are inclined to pause the tightening process due to recent turbulence in global financial markets.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,418 shares rose and 1,110 shares fell. A total of 155 shares were unchanged. The BSE Mid-Cap index rose 0.63%. The BSE Small-Cap index rose 0.59%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 3361 crore, higher than turnover of Rs 2352.52 crore registered during the previous trading session.
The Sensex rose 267.35 points or 1.14% to settle at 23,649.22, its highest closing level since 10 February 2016. The Sensex jumped 353.48 points or 1.51% at the day's high of 23,735.35. The barometer index rose 66.34 points or 0.28% at the day's low of 23,448.21.
The Nifty 50 index rose 83.30 points or 1.17% to settle at 7,191.75, its highest closing level since 10 February 2016. The index rose 106.65 points or 1.5% at the day's high of 7,215.10. The index rose 19.40 points or 0.27% at the day's low of 7,127.85.
Among the sectoral indices on BSE, the S&P BSE Utilities index (up 0.11%), the S&P BSE Power index (up 0.31%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.38%), the S&P BSE Realty index (up 0.38%), the S&P BSE Energy index (up 0.43%), the S&P BSE Auto index (up 0.56%), the S&P BSE Finance index (up 0.64%), the S&P BSE Industrials index (up 0.76%), the S&P BSE Consumer Durables index (up 0.92%), the S&P BSE Telecom index (up 1.03%), the S&P BSE Bankex (up 1.1%) and the S&P BSE Metal index (up 1.12%) underperformed the Sensex. The S&P BSE Oil & Gas index (up 1.22%), the S&P BSE Basic Materials index (up 1.31%), the S&P BSE FMCG index (up 1.52%), the S&P BSE Capital Goods index (up 1.59%), the S&P BSE Healthcare index (up 1.78%), the S&P BSE Teck index (up 1.9%) and the S&P BSE IT index (up 1.94%) outperformed the Sensex.
IT stocks edged higher on renewed buying. Infosys (up 2.49%), Wipro (up 2.60%), HCL Technologies (up 2.33%), TCS (up 1.64%) and Oracle Financial Services Software (up 0.90%) gained. Tech Mahindra (down 0.16%) edged lower.
Shares of oil exploration and production (E&P) companies rose on surge in crude oil prices. Cairn India (up 3.86%), Oil India (up 2.48%) and ONGC (up 4.50%) gained. Reliance Industries (down 1.19%) edged lower. Higher crude oil prices would result in higher realization from crude sales for oil exploration firms.
Shares of public sector oil marketing companies (PSU OMCs) edged higher after announcing fuel price review overnight. BPCL (up 0.74%) and Indian Oil Corporation (IOCL) (up 1.85%) gained. HPCL (down 1.06%) edged lower. IOCL yesterday, 17 February 2016, announced reduction in petrol price by 32 paise per litre with effect from 18 February 2016. On the other hand, the diesel price was increased by 28 paise a litre. Petrol in Delhi now costs Rs 59.63 per litre and diesel Rs 44.96 a litre.
In the global commodities markets, Brent crude oil futures edged higher after Iran welcomed plans by Russia and Saudi Arabia to cap production. Brent for April settlement was currently up 71 cents at $35.21 a barrel. The contract had surged $2.32 a barrel or 7.2% to settle at $34.50 a barrel during previous trading session.
Pharma stocks gained. Strides Shasun (up 4.62%), Ipca Laboratories (up 5.20%), Cadila Healthcare (up 2.58%), Sun Pharmaceutical Industries (up 1.70%), Aurobindo Pharma (up 0.55%) and Lupin (up 2.68%) edged higher. Divi's Laboratories (down 1.13%), Alkem Laboratories (down 0.72%) and Wockhardt (down 0.56%) declined.
Dr Reddy's Laboratories gained 4.52% at Rs 3,094.95, with the stock extending previous trading session's gains triggered by the company's announcement of share buyback plan. The stock had gained 3.52% to settle at Rs 2,961.05 yesterday, 17 February 2016, after the announcement hit the market in late trade. Dr Reddy's Laboratories has announced a proposal for buyback of equity shares of the company for an aggregate amount not exceeding Rs 1569.40 crore at a price not exceeding Rs 3,500 per share under the open market route. The company's promoters will not be eligible to participate in the share buyback programme.
Cipla rose 1.09% at Rs 525.35 after the company announced that its UK arm Cipla (EU) Limited has completed the transaction to acquire two US-based companies, InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc. The acquisition was made by Cipla (EU) Limited through a wholly owned special purpose vehicle (SPV) which would merge into InvaGen Pharmaceuticals Inc. after the acquisition. The combined revenue for the two companies for the year-ended 2015 was over $230 million. The announcement was made before market hours today, 18 February 2016.
Glenmark Pharmaceuticals rose 1.17% at Rs 729.10, with the stock extending previous trading session's gains triggered by the company getting tentative approval from the US drug regulator for its generic version of azelaic acid. The stock had gained 2.34% to settle at Rs 720.65 yesterday, 17 February 2016, after the company made the announcement before market hours on that day. Glenmark Pharmaceuticals has been granted tentative approval by the United States Food & Drug Administration (USFDA) for its Azelaic Acid Gel, 15%, the generic version of Finacea Topical Gel, 15% of Bayer Healthcare. Glenmark will market this product in the US after receiving final approval. The patent listed in the Orange Book for Finacea Topical Gel, 15% is scheduled to expire on 18 November 2018. According to IMS Health sales data for the 12 months period ended December 2015, the Finacea market achieved annual sales of approximately $128 million in the United States.
Stocks of public sector banks ended on a mixed note. Canara Bank (down 0.95%), Bank of India (down 0.58%), Punjab National Bank (down 0.21%) and Union Bank of India (down 0.65%) declined. IDBI Bank (up 1.13%), State Bank of India (up 0.25%), Bank of Baroda (up 0.36%), Central Bank of India (up 1.13%) and Andhra Bank (up 1.29%) gained.
Stocks of private sector banks edged higher. ICICI Bank (up 2.83%), IndusInd Bank (up 1.88%), HDFC Bank (up 1.48%) and Kotak Mahindra Bank (up 1.52%) gained. Axis Bank (down 1.39%) and Yes Bank (down 0.81%) declined.
Quick Heal Technologies made a dismal debut on the bourses. The stock settled at Rs 254.45 on BSE, a discount of 20.73% compared with the initial public offer (IPO) price of Rs 321. The stock debuted at Rs 304.95, a discount of 5% compared with the IPO price. The stock hit a high of Rs 329.95 and a low of Rs 246. On BSE, 55.4 lakh shares were traded on the counter.
The Sensex has risen 457.25 points or 1.97% in two trading sessions from its close of 23,191.97 on 16 February 2016. The barometer index has fallen 1,219.47 points or 4.9% in this month so far (till 18 February 2016). The Sensex has fallen 2,465.32 points or 9.44% in calendar year 2016 so far (till 18 February 2016). From a 52-week low of 22,600.39 on 12 February 2016, the Sensex has risen 1,049.83 points or 4.65%. The Sensex is off 6,375.52 points or 21.23% from a record high of 30,024.74 hit on 4 March 2015.
Shares of oil exploration and production (E&P) companies rose on surge in crude oil prices. Dr Reddy's Laboratories moved higher, with the stock extending previous trading session's gains triggered by the company's announcement of share buyback plan. Cipla nudged higher after the company announced that its UK arm has completed the transaction to acquire two US-based companies. Quick Heal Technologies made a dismal debut on the bourses.
In overseas stock markets, Japan and Hong Kong led gains in Asian markets triggered by a rally on Wall Street overnight. In Japan, the Nikkei 225 Average ended 2.28% higher. In Hong Kong, the Hang Seng index ended 2.32% higher. European stocks edged higher in volatile trade ahead of the release of the minutes of the European Central Bank's most recent policy meeting due later in the day. US stocks registered strong gains yesterday, 17 February 2016, as the minutes from the US Federal Reserve's January policy meeting suggested that policy makers are inclined to pause the tightening process due to recent turbulence in global financial markets.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,418 shares rose and 1,110 shares fell. A total of 155 shares were unchanged. The BSE Mid-Cap index rose 0.63%. The BSE Small-Cap index rose 0.59%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 3361 crore, higher than turnover of Rs 2352.52 crore registered during the previous trading session.
The Sensex rose 267.35 points or 1.14% to settle at 23,649.22, its highest closing level since 10 February 2016. The Sensex jumped 353.48 points or 1.51% at the day's high of 23,735.35. The barometer index rose 66.34 points or 0.28% at the day's low of 23,448.21.
The Nifty 50 index rose 83.30 points or 1.17% to settle at 7,191.75, its highest closing level since 10 February 2016. The index rose 106.65 points or 1.5% at the day's high of 7,215.10. The index rose 19.40 points or 0.27% at the day's low of 7,127.85.
Among the sectoral indices on BSE, the S&P BSE Utilities index (up 0.11%), the S&P BSE Power index (up 0.31%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.38%), the S&P BSE Realty index (up 0.38%), the S&P BSE Energy index (up 0.43%), the S&P BSE Auto index (up 0.56%), the S&P BSE Finance index (up 0.64%), the S&P BSE Industrials index (up 0.76%), the S&P BSE Consumer Durables index (up 0.92%), the S&P BSE Telecom index (up 1.03%), the S&P BSE Bankex (up 1.1%) and the S&P BSE Metal index (up 1.12%) underperformed the Sensex. The S&P BSE Oil & Gas index (up 1.22%), the S&P BSE Basic Materials index (up 1.31%), the S&P BSE FMCG index (up 1.52%), the S&P BSE Capital Goods index (up 1.59%), the S&P BSE Healthcare index (up 1.78%), the S&P BSE Teck index (up 1.9%) and the S&P BSE IT index (up 1.94%) outperformed the Sensex.
IT stocks edged higher on renewed buying. Infosys (up 2.49%), Wipro (up 2.60%), HCL Technologies (up 2.33%), TCS (up 1.64%) and Oracle Financial Services Software (up 0.90%) gained. Tech Mahindra (down 0.16%) edged lower.
Shares of oil exploration and production (E&P) companies rose on surge in crude oil prices. Cairn India (up 3.86%), Oil India (up 2.48%) and ONGC (up 4.50%) gained. Reliance Industries (down 1.19%) edged lower. Higher crude oil prices would result in higher realization from crude sales for oil exploration firms.
Shares of public sector oil marketing companies (PSU OMCs) edged higher after announcing fuel price review overnight. BPCL (up 0.74%) and Indian Oil Corporation (IOCL) (up 1.85%) gained. HPCL (down 1.06%) edged lower. IOCL yesterday, 17 February 2016, announced reduction in petrol price by 32 paise per litre with effect from 18 February 2016. On the other hand, the diesel price was increased by 28 paise a litre. Petrol in Delhi now costs Rs 59.63 per litre and diesel Rs 44.96 a litre.
In the global commodities markets, Brent crude oil futures edged higher after Iran welcomed plans by Russia and Saudi Arabia to cap production. Brent for April settlement was currently up 71 cents at $35.21 a barrel. The contract had surged $2.32 a barrel or 7.2% to settle at $34.50 a barrel during previous trading session.
Pharma stocks gained. Strides Shasun (up 4.62%), Ipca Laboratories (up 5.20%), Cadila Healthcare (up 2.58%), Sun Pharmaceutical Industries (up 1.70%), Aurobindo Pharma (up 0.55%) and Lupin (up 2.68%) edged higher. Divi's Laboratories (down 1.13%), Alkem Laboratories (down 0.72%) and Wockhardt (down 0.56%) declined.
Dr Reddy's Laboratories gained 4.52% at Rs 3,094.95, with the stock extending previous trading session's gains triggered by the company's announcement of share buyback plan. The stock had gained 3.52% to settle at Rs 2,961.05 yesterday, 17 February 2016, after the announcement hit the market in late trade. Dr Reddy's Laboratories has announced a proposal for buyback of equity shares of the company for an aggregate amount not exceeding Rs 1569.40 crore at a price not exceeding Rs 3,500 per share under the open market route. The company's promoters will not be eligible to participate in the share buyback programme.
Cipla rose 1.09% at Rs 525.35 after the company announced that its UK arm Cipla (EU) Limited has completed the transaction to acquire two US-based companies, InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc. The acquisition was made by Cipla (EU) Limited through a wholly owned special purpose vehicle (SPV) which would merge into InvaGen Pharmaceuticals Inc. after the acquisition. The combined revenue for the two companies for the year-ended 2015 was over $230 million. The announcement was made before market hours today, 18 February 2016.
Glenmark Pharmaceuticals rose 1.17% at Rs 729.10, with the stock extending previous trading session's gains triggered by the company getting tentative approval from the US drug regulator for its generic version of azelaic acid. The stock had gained 2.34% to settle at Rs 720.65 yesterday, 17 February 2016, after the company made the announcement before market hours on that day. Glenmark Pharmaceuticals has been granted tentative approval by the United States Food & Drug Administration (USFDA) for its Azelaic Acid Gel, 15%, the generic version of Finacea Topical Gel, 15% of Bayer Healthcare. Glenmark will market this product in the US after receiving final approval. The patent listed in the Orange Book for Finacea Topical Gel, 15% is scheduled to expire on 18 November 2018. According to IMS Health sales data for the 12 months period ended December 2015, the Finacea market achieved annual sales of approximately $128 million in the United States.
Stocks of public sector banks ended on a mixed note. Canara Bank (down 0.95%), Bank of India (down 0.58%), Punjab National Bank (down 0.21%) and Union Bank of India (down 0.65%) declined. IDBI Bank (up 1.13%), State Bank of India (up 0.25%), Bank of Baroda (up 0.36%), Central Bank of India (up 1.13%) and Andhra Bank (up 1.29%) gained.
Stocks of private sector banks edged higher. ICICI Bank (up 2.83%), IndusInd Bank (up 1.88%), HDFC Bank (up 1.48%) and Kotak Mahindra Bank (up 1.52%) gained. Axis Bank (down 1.39%) and Yes Bank (down 0.81%) declined.
Quick Heal Technologies made a dismal debut on the bourses. The stock settled at Rs 254.45 on BSE, a discount of 20.73% compared with the initial public offer (IPO) price of Rs 321. The stock debuted at Rs 304.95, a discount of 5% compared with the IPO price. The stock hit a high of Rs 329.95 and a low of Rs 246. On BSE, 55.4 lakh shares were traded on the counter.
The Sensex has risen 457.25 points or 1.97% in two trading sessions from its close of 23,191.97 on 16 February 2016. The barometer index has fallen 1,219.47 points or 4.9% in this month so far (till 18 February 2016). The Sensex has fallen 2,465.32 points or 9.44% in calendar year 2016 so far (till 18 February 2016). From a 52-week low of 22,600.39 on 12 February 2016, the Sensex has risen 1,049.83 points or 4.65%. The Sensex is off 6,375.52 points or 21.23% from a record high of 30,024.74 hit on 4 March 2015.
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