Nifty settles at over 15-months high
Key benchmark indices registered decent gains on hopes that the Goods & Services Tax (GST) bill inched closer to becoming a reality after media reports suggested that the Union Cabinet approved amendments to the constitutional amendment bill, incorporating suggestions by some of the states and opposition parties. The barometer index, the S&P BSE Sensex, rose 184.29 points or 0.66% to settle at 28,208.62. The Nifty 50 index rose 50.50 points or 0.59% to settle at 8,666.30. Market sentiment was also boosted after the US Federal Reserve has opted to keep interest rates at ultra-low level after the conclusion of a two-day monetary policy meeting. The ultra-loose monetary policy in the US has encouraged heavy investment in higher-yielding emerging markets. The Sensex and Nifty extended intraday gains in late trade after hovering in positive zone throughout the trading session. The Sensex settled at its highest level in almost 12 months. The Nifty settled at its highest level in more than 15 months.
According to reports, the Union Cabinet yesterday, 27 July 2016, cleared changes in the constitutional amendment bill on Goods and Services Tax (GST) including doing away with the additional 1% tax by producing states and compensating all states for any revenue loss in the first five years post the GST rollout. The Cabinet, headed by Prime Minister Narendra Modi, decided not to accede to the Congress party's demand of specifying the GST rate in the Constitution itself, reports suggested. It is likely to be part of the GST bill that will be legislated separately by both the Centre and states, as per reports.
The GST bill is likely to be moved in the Rajya Sabha next week. The GST bill, which has been approved by the Lok Sabha is pending in the Rajya Sabha because of opposition to the bill in its current form by the Congress party. A constitutional amendment bill requires at least 50% attendance and support of two-third of those present and voting in the house. For the GST bill to become a law, the bill also needs to be approved by half the state assemblies after its passage in the parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. The GST seeks to create a seamless national market in the country by replacing plethora of state taxes and central taxes by one tax. The month-long monsoon session of the parliament will conclude on 12 August 2016.
The Sensex rose 184.29 points or 0.66% to settle at 28,208.62, its highest closing level since 7 August 2015. The index rose 215.87 points or 0.77% at the day's high of 28,240.20. The index rose 40.57 points or 0.14% at the day's low of 28,064.90.
The Nifty 50 index rose 50.50 points or 0.59% to settle at 8,666.30, its highest closing level since 16 April 2015. The index rose 58.40 points or 0.67% at the day's high of 8,674.20. The index rose 9.45 points or 0.1% at the day's low of 8,625.25.
The market breadth indicating the overall health of the market was positive. On BSE, 1,486 shares rose and 1,164 shares declined. A total of 228 shares were unchanged. The BSE Mid-Cap index rose 0.62%. The BSE Small-Cap index rose 0.60%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 4026 crore, higher than turnover of Rs 3487.26 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Capital Goods index (down 0.84%), the S&P BSE Metal index (down 0.74%), the S&P BSE Industrials index (down 0.44%), the S&P BSE Oil & Gas index (down 0.12%), the S&P BSE IT index (up 0.10%), the S&P BSE Teck index (up 0.17%), the S&P BSE Bankex (up 0.25%), the S&P BSE Basic Materials index (up 0.26%), the S&P BSE Healthcare index (up 0.41%), the S&P BSE Finance index (up 0.48%), the S&P BSE Energy index (up 0.53%) and the S&P BSE Power index (up 0.56%), underperformed the Sensex. The S&P BSE Utilities index (up 0.66%), matching the Sensex's rise in percentage terms. The S&P BSE Telecom index (up 0.75%), the S&P BSE Auto index (up 0.81%), the S&P BSE Realty index (up 0.95%), the S&P BSE Consumer Discretionary Goods & Services index (up 1.49%), the S&P BSE FMCG index (up 1.50%) and the S&P BSE Consumer Durables index (up 2.30%), outperformed the Sensex.
In overseas stock markets, European and Asian stocks were mixed. In Japan, the Nikkei 225 Average ended 1.13% lower. Investors are hoping for further easing of monetary policy from the Bank of Japan (BOJ) after the conclusion of a two-day monetary policy meeting on 28-29 July 2016. Strength in the yen against the dollar post last month's Brexit vote and data showing a slowdown in the Japanese economy have triggered expectations of further easing of monetary policy from the BOJ. A stronger yen hurts the competitiveness of Japanese exporters.
US stocks closed mixed yesterday, 27 July 2016, after the Federal Reserve statement and major earnings reports. The Federal Open Market Committee (FOMC) has decided not to raise interest rates, maintaining the ultra-low level they have been at since December 2015. The US central bank opted to keep rates between 0.25% and 0.5%. The Fed said near-term risks to the economic outlook have diminished but inflation remained below the bank's target.
Automobiles maker Eicher Motors rose 3.64% to Rs 21,075.20. The company's consolidated net profit surged 58.61% to Rs 376.29 crore on 42.81% growth in total income to Rs 1602.51 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours today, 28 July 2016.
Bank stocks were mixed. Among public sector banks, Union Bank of India (down 0.84%) and IDBI Bank (down 2.36%) declined.
The Reserve Bank of India (RBI) yesterday, 27 July 2016 said that it has imposed monetary penalty on 13 banks for violation of regulatory directions/instructions/guidelines, among other things, on KYC norms.
Allahabad Bank rose 0.19%. The central bank imposed a penalty of Rs 2 crore on the bank.
Bank of India fell 1.34%. The central bank imposed a penalty of Rs 1 crore on the bank.
Bank of Baroda fell 0.19%. The central bank imposed a penalty of Rs 5 crore on the bank.
Canara Bank fell 1.11%. The central bank imposed a penalty of Rs 2 crore on the bank.
Punjab National Bank fell 2.82%. The central bank imposed a penalty of Rs 3 crore on the bank.
State Bank of Bikaner & Jaipur fell 0.94%. The central bank imposed a penalty of Rs 2 crore on the bank.
Syndicate Bank rose 1.32%. The central bank imposed a penalty of Rs 3 crore on the bank.
UCO Bank fell 0.58%. The central bank imposed a penalty of Rs 2 crore on the bank.
State Bank of Mysore fell 2.06%. The central bank imposed a penalty of Rs 1 crore on the bank.
Corporation Bank fell 0.82%. The central bank imposed a penalty of Rs 1 crore on the bank.
Eight other banks, namely, Axis Bank, Federal Bank, ICICI Bank, Kotak Mahindra Bank, OBC, Standard Chartered Bank, SBI and Union Bank of India have been advised by the central bank to put in place appropriate measures and review them from time to time to ensure strict compliance of KYC requirements and FEMA provisions on an ongoing basis.
Among private sector banks, ICICI Bank (up 0.82%) and Yes Bank (up 1.70%) edged higher. Kotak Mahindra Bank (down 0.63%) and Axis Bank (down 0.98%) edged lower.
Index heavyweight HDFC Bank rose 0.89%. The central bank imposed a penalty of Rs 2 crore on the bank.
IndusInd Bank fell 0.86%. The central bank imposed a penalty of Rs 2 crore on the bank.
Cement stocks edged higher on renewed buying. Shree Cement (up 2.35%), Ambuja Cements (up 1.36%), UltraTech Cement (up 0.16%) and ACC (up 0.81%) rose.
Grasim Industries fell 0.38%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Asian Paints jumped after the company reported strong Q1 results. The stock rose 6.14% at Rs 1,126.95. The stock hit a record high of Rs 1,152.65 in intraday trade. The stock hit a low of Rs 1,067.25 in intraday trade. The company's consolidated net profit after minority interest rose 17.9% to Rs 535 crore on 10.2% increase interest from operations to Rs 4082.10 crore in Q1 June 2016 over Q1 June 2015. Profit before depreciation, interest, and taxes (PBDIT) rose 20.9% to Rs 820.30 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 27 July 2016.
K.B.S. Anand, Managing Director & CEO, Asian Paints said that the decorative business segment India registered double digit growth during the quarter. Lower raw material prices led to improved margins. Industrial business registered good growth in the industrial liquid paints category for the company's joint venture (JV) AP-PPG while the other JV PPG-AP saw good demand in the auto original equipment manufacturers (OEM) and general industrial segment. The company's international business performed well, aided by good growth in markets like Nepal, UAE and Fiji. Both the segments in the home improvement category -- the Kitchen (Sleek) and Bath (ESS ESS) businesses -- delivered good topline growth in the quarter as compared to the previous year.
Bharti Airtel dropped 0.12% at Rs 372.10 after consolidated net profit fell 30.8% to Rs 1462 crore on 7.9% increase in total revenue to Rs 25546 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 27 July 2016.
The consolidated revenue grew 8.4% to Rs 25546 crore in Q1 June 2016 over Q1 June 2015 on an underlying basis, adjusted for Africa divested operating unit and tower assets sale.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 16.4% to Rs 9591 crore in Q1 June 2016 over Q1 June 2015. The EBITDA margin edged up to 37.5% in Q1 June 2016 from 34.8% in Q1 June 2015.
The company has adopted Indian Accounting Standards (Ind-AS) for its consolidated results effective 1 April 2016 with periods reinstated for like to like comparison.
Consolidated mobile data revenue grew by 34.1% to Rs 4640 crore in Q1 June 2016 over Q1 June 2015.
India revenues grew by 10.3% to Rs 19155 crore in Q1 June 2016 over Q1 June 2015. This was led by healthy growth of 9.1% in Mobile, 11.0% in Homes, 22.2% in Digital TV and 10.4% in Airtel Business on year-on-year (Y-o-Y) basis.
The company has realigned its India segment reporting in line with management reorganisation. Consequently, Airtel Business also now includes the erstwhile Corporate fixed line voice and fixed line data business which was hitherto reported with Telemedia segment. Mobile data revenues cross Rs 3500 crore and at Rs 3525 crore grew by 35.1% Y-o-Y, led by increase in the data customer base by 19.1% and traffic by 54.9%. Mobile broadband customers increased by 68.3% to 36.6 million from 21.7 million in the corresponding quarter last year. Data average revenue per user (ARPU) has moved up by Rs 21 Y-o-Y to Rs 202 in Q1 June 2016, led by 28.1% increase in usage per customer. Mobile Data revenues now contribute to 23.7% of Mobile India revenues vis-à-vis 19.2% in the corresponding quarter last year.
Passenger car major Maruti Suzuki India (MSIL) edged higher after the company said that it plans to expand the number of NEXA outlets to 250 by March 2017. The stock rose 4.47%. NEXA is expected to contribute 15% of Maruti's sales by 2020, the company said. MSIL during market hours today, 28 July 2016 said that NEXA, the new automotive sales channel of the company has completed one year of operations. Launched in July 2015, NEXA has enabled MSIL to attract new categories of customers to its fold. NEXA has rapidly grown to 150 showrooms across 94 cities. Over 1 lakh cars have been sold through NEXA. This is about 10% of MSIL's total domestic sales, the company said. At present, the cars sold through NEXA are premium cross-over, S-Cross and premium hatchback, Baleno.
Sun Pharmaceutical Industries (Sun Pharma) rose 1.99% after the company said it signed an agreement with RPG Life Sciences on 27 July 2016 to divest seven prescription brands in India, owned by Sun Pharma and its subsidiary, for a consideration of Rs 41 crore. The seven divested brands include brands used for treatment of respiratory-track infections, urological disorders, cardiovascular diseases and brands in health supplements segment. This divestment is subject to receipt of Competition Commission of India's (CCI) approval. The announcement was made after market hours yesterday, 27 July 2016.
Separately, Sun Pharma before market hours today, 28 July 2016, announced a licencing agreement with Almirall on the development and commercialization of Tildrakizumab for psoriasis in Europe. Tildrakizumab is an investigational IL-23p19 inhibitor currently being evaluated in patients with moderate-to-severe plaque psoriasis. Under the terms of the licence agreement, Almirall will pay Sun Pharma an initial upfront payment of $50 million. Phase-3 studies of Tildrakizumab have recently been completed. Sun Pharma will be eligible to receive development and regulatory milestone payments and, additionally, sales milestone payments and royalties on net sales, the terms of which are confidential. Almirall will be able to lead European studies, and participate in larger global clinical studies for psoriasis indication subject to the terms of the Sun Pharma-Merck agreements, as well as certain cost sharing agreements. Sun Pharma will continue to lead development of Tildrakizumab for other indications, where Almirall will have right of first negotiation for certain indications in Europe. Additionally, the license agreement has a provision for possible co-promotion agreement at some point in the future, subject to certain conditions, Sun Pharma said in a statement.
The Sensex and the Nifty edged higher for the second straight trading session. The Sensex has risen 232.10 points or 0.83% in two trading sessions from its close of 27,976.52 on 26 July 2016. The Sensex has risen 1,208.90 points or 4.48% in this month so far (till 28 July 2016). The Sensex has risen 2,091.08 points or 8.01% in calendar year 2016 so far (till 28 July 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,714.01 points or 25.40%. The Sensex is off 208.97 points or 0.74% from a 52-week high of 28,417.59 hit on 10 August 2015. The Sensex is off 1,816.12 points or 6.05% from a record high of 30,024.74 hit on 4 March 2015.
According to reports, the Union Cabinet yesterday, 27 July 2016, cleared changes in the constitutional amendment bill on Goods and Services Tax (GST) including doing away with the additional 1% tax by producing states and compensating all states for any revenue loss in the first five years post the GST rollout. The Cabinet, headed by Prime Minister Narendra Modi, decided not to accede to the Congress party's demand of specifying the GST rate in the Constitution itself, reports suggested. It is likely to be part of the GST bill that will be legislated separately by both the Centre and states, as per reports.
The GST bill is likely to be moved in the Rajya Sabha next week. The GST bill, which has been approved by the Lok Sabha is pending in the Rajya Sabha because of opposition to the bill in its current form by the Congress party. A constitutional amendment bill requires at least 50% attendance and support of two-third of those present and voting in the house. For the GST bill to become a law, the bill also needs to be approved by half the state assemblies after its passage in the parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. The GST seeks to create a seamless national market in the country by replacing plethora of state taxes and central taxes by one tax. The month-long monsoon session of the parliament will conclude on 12 August 2016.
The Sensex rose 184.29 points or 0.66% to settle at 28,208.62, its highest closing level since 7 August 2015. The index rose 215.87 points or 0.77% at the day's high of 28,240.20. The index rose 40.57 points or 0.14% at the day's low of 28,064.90.
The Nifty 50 index rose 50.50 points or 0.59% to settle at 8,666.30, its highest closing level since 16 April 2015. The index rose 58.40 points or 0.67% at the day's high of 8,674.20. The index rose 9.45 points or 0.1% at the day's low of 8,625.25.
The market breadth indicating the overall health of the market was positive. On BSE, 1,486 shares rose and 1,164 shares declined. A total of 228 shares were unchanged. The BSE Mid-Cap index rose 0.62%. The BSE Small-Cap index rose 0.60%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 4026 crore, higher than turnover of Rs 3487.26 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Capital Goods index (down 0.84%), the S&P BSE Metal index (down 0.74%), the S&P BSE Industrials index (down 0.44%), the S&P BSE Oil & Gas index (down 0.12%), the S&P BSE IT index (up 0.10%), the S&P BSE Teck index (up 0.17%), the S&P BSE Bankex (up 0.25%), the S&P BSE Basic Materials index (up 0.26%), the S&P BSE Healthcare index (up 0.41%), the S&P BSE Finance index (up 0.48%), the S&P BSE Energy index (up 0.53%) and the S&P BSE Power index (up 0.56%), underperformed the Sensex. The S&P BSE Utilities index (up 0.66%), matching the Sensex's rise in percentage terms. The S&P BSE Telecom index (up 0.75%), the S&P BSE Auto index (up 0.81%), the S&P BSE Realty index (up 0.95%), the S&P BSE Consumer Discretionary Goods & Services index (up 1.49%), the S&P BSE FMCG index (up 1.50%) and the S&P BSE Consumer Durables index (up 2.30%), outperformed the Sensex.
In overseas stock markets, European and Asian stocks were mixed. In Japan, the Nikkei 225 Average ended 1.13% lower. Investors are hoping for further easing of monetary policy from the Bank of Japan (BOJ) after the conclusion of a two-day monetary policy meeting on 28-29 July 2016. Strength in the yen against the dollar post last month's Brexit vote and data showing a slowdown in the Japanese economy have triggered expectations of further easing of monetary policy from the BOJ. A stronger yen hurts the competitiveness of Japanese exporters.
US stocks closed mixed yesterday, 27 July 2016, after the Federal Reserve statement and major earnings reports. The Federal Open Market Committee (FOMC) has decided not to raise interest rates, maintaining the ultra-low level they have been at since December 2015. The US central bank opted to keep rates between 0.25% and 0.5%. The Fed said near-term risks to the economic outlook have diminished but inflation remained below the bank's target.
Automobiles maker Eicher Motors rose 3.64% to Rs 21,075.20. The company's consolidated net profit surged 58.61% to Rs 376.29 crore on 42.81% growth in total income to Rs 1602.51 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours today, 28 July 2016.
Bank stocks were mixed. Among public sector banks, Union Bank of India (down 0.84%) and IDBI Bank (down 2.36%) declined.
The Reserve Bank of India (RBI) yesterday, 27 July 2016 said that it has imposed monetary penalty on 13 banks for violation of regulatory directions/instructions/guidelines, among other things, on KYC norms.
Allahabad Bank rose 0.19%. The central bank imposed a penalty of Rs 2 crore on the bank.
Bank of India fell 1.34%. The central bank imposed a penalty of Rs 1 crore on the bank.
Bank of Baroda fell 0.19%. The central bank imposed a penalty of Rs 5 crore on the bank.
Canara Bank fell 1.11%. The central bank imposed a penalty of Rs 2 crore on the bank.
Punjab National Bank fell 2.82%. The central bank imposed a penalty of Rs 3 crore on the bank.
State Bank of Bikaner & Jaipur fell 0.94%. The central bank imposed a penalty of Rs 2 crore on the bank.
Syndicate Bank rose 1.32%. The central bank imposed a penalty of Rs 3 crore on the bank.
UCO Bank fell 0.58%. The central bank imposed a penalty of Rs 2 crore on the bank.
State Bank of Mysore fell 2.06%. The central bank imposed a penalty of Rs 1 crore on the bank.
Corporation Bank fell 0.82%. The central bank imposed a penalty of Rs 1 crore on the bank.
Eight other banks, namely, Axis Bank, Federal Bank, ICICI Bank, Kotak Mahindra Bank, OBC, Standard Chartered Bank, SBI and Union Bank of India have been advised by the central bank to put in place appropriate measures and review them from time to time to ensure strict compliance of KYC requirements and FEMA provisions on an ongoing basis.
Among private sector banks, ICICI Bank (up 0.82%) and Yes Bank (up 1.70%) edged higher. Kotak Mahindra Bank (down 0.63%) and Axis Bank (down 0.98%) edged lower.
Index heavyweight HDFC Bank rose 0.89%. The central bank imposed a penalty of Rs 2 crore on the bank.
IndusInd Bank fell 0.86%. The central bank imposed a penalty of Rs 2 crore on the bank.
Cement stocks edged higher on renewed buying. Shree Cement (up 2.35%), Ambuja Cements (up 1.36%), UltraTech Cement (up 0.16%) and ACC (up 0.81%) rose.
Grasim Industries fell 0.38%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Asian Paints jumped after the company reported strong Q1 results. The stock rose 6.14% at Rs 1,126.95. The stock hit a record high of Rs 1,152.65 in intraday trade. The stock hit a low of Rs 1,067.25 in intraday trade. The company's consolidated net profit after minority interest rose 17.9% to Rs 535 crore on 10.2% increase interest from operations to Rs 4082.10 crore in Q1 June 2016 over Q1 June 2015. Profit before depreciation, interest, and taxes (PBDIT) rose 20.9% to Rs 820.30 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 27 July 2016.
K.B.S. Anand, Managing Director & CEO, Asian Paints said that the decorative business segment India registered double digit growth during the quarter. Lower raw material prices led to improved margins. Industrial business registered good growth in the industrial liquid paints category for the company's joint venture (JV) AP-PPG while the other JV PPG-AP saw good demand in the auto original equipment manufacturers (OEM) and general industrial segment. The company's international business performed well, aided by good growth in markets like Nepal, UAE and Fiji. Both the segments in the home improvement category -- the Kitchen (Sleek) and Bath (ESS ESS) businesses -- delivered good topline growth in the quarter as compared to the previous year.
Bharti Airtel dropped 0.12% at Rs 372.10 after consolidated net profit fell 30.8% to Rs 1462 crore on 7.9% increase in total revenue to Rs 25546 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 27 July 2016.
The consolidated revenue grew 8.4% to Rs 25546 crore in Q1 June 2016 over Q1 June 2015 on an underlying basis, adjusted for Africa divested operating unit and tower assets sale.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 16.4% to Rs 9591 crore in Q1 June 2016 over Q1 June 2015. The EBITDA margin edged up to 37.5% in Q1 June 2016 from 34.8% in Q1 June 2015.
The company has adopted Indian Accounting Standards (Ind-AS) for its consolidated results effective 1 April 2016 with periods reinstated for like to like comparison.
Consolidated mobile data revenue grew by 34.1% to Rs 4640 crore in Q1 June 2016 over Q1 June 2015.
India revenues grew by 10.3% to Rs 19155 crore in Q1 June 2016 over Q1 June 2015. This was led by healthy growth of 9.1% in Mobile, 11.0% in Homes, 22.2% in Digital TV and 10.4% in Airtel Business on year-on-year (Y-o-Y) basis.
The company has realigned its India segment reporting in line with management reorganisation. Consequently, Airtel Business also now includes the erstwhile Corporate fixed line voice and fixed line data business which was hitherto reported with Telemedia segment. Mobile data revenues cross Rs 3500 crore and at Rs 3525 crore grew by 35.1% Y-o-Y, led by increase in the data customer base by 19.1% and traffic by 54.9%. Mobile broadband customers increased by 68.3% to 36.6 million from 21.7 million in the corresponding quarter last year. Data average revenue per user (ARPU) has moved up by Rs 21 Y-o-Y to Rs 202 in Q1 June 2016, led by 28.1% increase in usage per customer. Mobile Data revenues now contribute to 23.7% of Mobile India revenues vis-à-vis 19.2% in the corresponding quarter last year.
Passenger car major Maruti Suzuki India (MSIL) edged higher after the company said that it plans to expand the number of NEXA outlets to 250 by March 2017. The stock rose 4.47%. NEXA is expected to contribute 15% of Maruti's sales by 2020, the company said. MSIL during market hours today, 28 July 2016 said that NEXA, the new automotive sales channel of the company has completed one year of operations. Launched in July 2015, NEXA has enabled MSIL to attract new categories of customers to its fold. NEXA has rapidly grown to 150 showrooms across 94 cities. Over 1 lakh cars have been sold through NEXA. This is about 10% of MSIL's total domestic sales, the company said. At present, the cars sold through NEXA are premium cross-over, S-Cross and premium hatchback, Baleno.
Sun Pharmaceutical Industries (Sun Pharma) rose 1.99% after the company said it signed an agreement with RPG Life Sciences on 27 July 2016 to divest seven prescription brands in India, owned by Sun Pharma and its subsidiary, for a consideration of Rs 41 crore. The seven divested brands include brands used for treatment of respiratory-track infections, urological disorders, cardiovascular diseases and brands in health supplements segment. This divestment is subject to receipt of Competition Commission of India's (CCI) approval. The announcement was made after market hours yesterday, 27 July 2016.
Separately, Sun Pharma before market hours today, 28 July 2016, announced a licencing agreement with Almirall on the development and commercialization of Tildrakizumab for psoriasis in Europe. Tildrakizumab is an investigational IL-23p19 inhibitor currently being evaluated in patients with moderate-to-severe plaque psoriasis. Under the terms of the licence agreement, Almirall will pay Sun Pharma an initial upfront payment of $50 million. Phase-3 studies of Tildrakizumab have recently been completed. Sun Pharma will be eligible to receive development and regulatory milestone payments and, additionally, sales milestone payments and royalties on net sales, the terms of which are confidential. Almirall will be able to lead European studies, and participate in larger global clinical studies for psoriasis indication subject to the terms of the Sun Pharma-Merck agreements, as well as certain cost sharing agreements. Sun Pharma will continue to lead development of Tildrakizumab for other indications, where Almirall will have right of first negotiation for certain indications in Europe. Additionally, the license agreement has a provision for possible co-promotion agreement at some point in the future, subject to certain conditions, Sun Pharma said in a statement.
The Sensex and the Nifty edged higher for the second straight trading session. The Sensex has risen 232.10 points or 0.83% in two trading sessions from its close of 27,976.52 on 26 July 2016. The Sensex has risen 1,208.90 points or 4.48% in this month so far (till 28 July 2016). The Sensex has risen 2,091.08 points or 8.01% in calendar year 2016 so far (till 28 July 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,714.01 points or 25.40%. The Sensex is off 208.97 points or 0.74% from a 52-week high of 28,417.59 hit on 10 August 2015. The Sensex is off 1,816.12 points or 6.05% from a record high of 30,024.74 hit on 4 March 2015.
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