Key indices register small losses
IT stocks and index heavyweight Reliance Industries (RIL) led losses for key benchmark indices. The barometer index, the S&P BSE Sensex, fell 59.24 points or 0.21% to settle at 28,005.37. The Nifty 50 index fell 18.50 points or 0.21% to settle at 8,624.05. The Sensex settled a tad above the psychologically important 28,000 mark. The index fluctuated alternately above and below that level in intraday trade after falling below that mark in afternoon trade. Losses for Asian and European stocks weighed on the domestic bourses. With losses for the second straight trading session, the Sensex and the Nifty, both, hit their lowest closing level in almost a week.
Infosys edged lower, with the stock extending previous trading session's decline triggered by the company's announcement that it had lost a contract from Royal Bank of Scotland. Reliance Industries moved lower, with the stock extending losses registered during the previous trading session triggered by media reports that the petroleum ministry has slapped a penalty of nearly $250 million on the company. Tata Motors eked out small gains after global credit rating agency Standard & Poor's Global Ratings upgraded its long-term corporate rating on Tata Motors to ‘BB+' from 'BB' earlier, citing improvement in the company's competitive position following the better performance of its 100% subsidiary, Jaguar Land Rover Automotive PLC (JLR).
Piramal Enterprises gained after the company's announcement that its wholly owned US subsidiary has entered into an agreement to acquire 100% stake in Ash Stevens Inc, a US-based contract development and manufacturing organisation (CDMO), in an all cash deal. InterGlobe Aviation edged higher on reports that a foreign brokerage has upgraded its rating on the stock to buy from neutral. Shares of Zee Learn and Tree House Education & Accessories both surged after the board of directors of both the companies approved revised scheme of merger.
The Sensex fell 59.24 points or 0.21% to settle at 28,005.37, its lowest closing level since 11 August 2016. The Sensex fell 104.47 points, or 0.37% at the day's low of 27,960.14. The index rose 109.69 points, or 0.39% at the day's high of 28,174.30.
The Nifty 50 index fell 18.50 points or 0.21% to settle at 8,624.05, its lowest closing level since 11 August 2016. The Nifty fell 38.95 points, or 0.45% at the day's low of 8,603.60. The index rose 24.55 points, or 0.28% at the day's high of 8,667.10.
The market breadth indicating the overall health of the market was positive. On BSE, 1,452 shares rose and 1,258 shares fell. A total of 174 shares were unchanged. The BSE Mid-Cap index rose 0.69%. The BSE Small-Cap index rose 0.55%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2839 crore, lower than turnover of Rs 3314.56 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE IT index (down 1.67%), the S&P BSE Teck index (down 1.35%), the S&P BSE FMCG index (down 0.31%), the S&P BSE Oil & Gas index (down 0.25%) underperformed the Sensex. The S&P BSE Power index (down 0.13%), the S&P BSE Utilities index (down 0.11%), the S&P BSE Energy index (down 0.09%), the S&P BSE Consumer Durables index (up 0.03%), the S&P BSE Capital Goods index (up 0.07%), the S&P BSE Realty index (up 0.08%), the S&P BSE Bankex (up 0.1%), the S&P BSE Finance index (up 0.21%), the S&P BSE Industrials index (up 0.24%), the S&P BSE Telecom index (up 0.27%), the S&P BSE Healthcare index (up 0.52%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.61%), the S&P BSE Auto index (up 0.84%), the S&P BSE Basic Materials index (up 1.01%) and the S&P BSE Metal index (up 2.06%) outperformed the Sensex.
In overseas stock markets, European stocks edged lower ahead of the closely-watched release of the US Federal Reserve's latest minutes. Most Asian stocks fell after New York Fed President William Dudley said the Federal Reserve could raise interest rates as soon as September, prompting investors to pause after rallies in recent weeks.
US stocks eased from record highs yesterday, 16 August 2016, with the S&P 500 losing 0.55% as investors weighed hawkish comments by Federal Reserve officials against sharp gains for oil futures, a weakening dollar and fresh consumer-price data that showed US inflation remains tepid. Dudley said a rate hike in September was possible, while Atlanta Fed President Dennis Lockhart said the US economy is likely strong enough for at least one rate increase before the end of 2016, with two a possibility. Dudley cited evidence of wage gains and a tighter labor market that could boost inflation. Their comments came ahead of an annual meeting of central bankers from around the world in Jackson Hole, Wyoming, next week.
Reliance Industries lost 1.09%, with the stock extending losses registered during the previous trading session triggered by media reports that the petroleum ministry has slapped a penalty of nearly $250 million on the company. According to reports, the petroleum ministry has slapped a penalty of nearly $250 million on the company to make good the government's loss of "profit petroleum" owing to the firm's inability to meet the natural gas production targets from the Krishna-Godavari (KG) D6 block. The stock had fallen 1.04% to settle at Rs 1,024.20 yesterday, 16 August 2016. The KG-D6 fields started production in April 2009. The current production of around 8 million metric standard cubic metres per day (mmscmd) is a far cry from the peak of over 69 mmscmd achieved in early 2010, reports suggested. The block was envisaged to produce more than 80 mmscmd of the fuel, reports indicated. Profit petroleum is the main source of revenue for the government from a hydrocarbon block.
IT stocks edged lower. TCS (down 2.51%), Wipro (down 1.4%), HCL Technologies (down 1.25%), Tech Mahindra (down 1.95%), MindTree (down 0.33%) declined. Oracle Financial Services Software (up 0.47%) and Hexaware Technologies (up 1.89%) rose.
Infosys lost 1.52%, with the stock extending previous trading session's decline triggered by the company's announcement that it had lost a contract from Royal Bank of Scotland. The stock had fallen 1.16% to settle at Rs 1,050.95 yesterday, 16 August 2016. The company announced before market hours yesterday, 16 August 2016, about losing a contract from Royal Bank of Scotland (RBS) as RBS decided not to pursue its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G). Subsequent to this decision by RBS, Infosys will carry out an orderly ramp-down of about 3,000 employees, primarily in India, over the next few months. Infosys was a W&G program technology partner for consulting, application delivery and testing services. As per reports, the decision of RBS will impact revenues of Infosys for the year ending 31 March 2017 (FY 2017) by about $40 million.
Stocks of state-run banks moved higher. Indian Bank (up 6.03%), Central Bank of India (up 3.74%), Corporation Bank (up 1.23%), Canara Bank (up 2.38%), Punjab National Bank (up 1.75%), Allahabad Bank (up 1.89%), Union Bank of India (up 1.66%), Bank of Baroda (up 0.97%), Syndicate Bank (up 1.04%), Dena Bank (up 0.55%), Vijaya Bank (up 1.59%), Bank of India (up 0.49%), UCO Bank (up 0.87%), IDBI Bank (up 0.29%), Andhra Bank (up 1.25%) and United Bank of India (up 0.23%), edged higher. Bank of Maharashtra (down 1.29%) and State Bank of India (down 0.08%) edged lower.
Stocks of private sector banks witnessed a mixed trend. Federal Bank (down 1.23%), Kotak Mahindra Bank (down 1.03%), IndusInd Bank (down 0.53%), ICICI Bank (down 0.56%), City Union Bank (down 0.31%), edged lower. HDFC Bank (up 0.92%), Yes Bank (up 0.66%) and Axis Bank (up 1.14%) edged higher.
Auto stocks gained on renewed buying. Maruti Suzuki India (up 0.37%), Mahindra & Mahindra (M&M) (up 0.41%), TVS Motor Company (up 4.79%), Escorts (up 2.31%), and Ashok Leyland (up 0.17%) gained. Eicher Motors shed 1.08%.
Tata Motors rose 0.66% after rating agency Standard & Poor's Global Ratings upgraded its long-term corporate rating on Tata Motors to 'BB+' from 'BB' earlier, citing improvement in the company's competitive position following the better performance of its 100% subsidiary, Jaguar Land Rover Automotive PLC (JLR). S&P has simultaneously raised its issue rating on Tata Motors' US-dollar-denominated senior unsecured notes to 'BB+' from 'BB'. The outlook on the rating is stable. The stable outlook reflects S&P's view that Tata Motors can maintain steady profitability, especially at JLR, supporting its financial position with ratio of funds from operations (FFO) to debt of about 40% over the next 12-24 months, the rating agency said.
According to S&P, JLR has launched new models successfully, extended existing ones, and expanded into new market segments. JLR also helped strengthen Tata Motors' financial position and its ability to withstand moderate volatility and the risks from the UK's recent vote to leave the European Union (Brexit), the rating agency said in a statement. JLR's improved competitive position will enable Tata Motors to register good operating performance over the next two years in the form of revenue growth and higher EBITDA (earnings before interest, taxation, depreciation and amortization) margin, S&P said. JLR is British luxury car unit of Tata Motors.
Bajaj Auto gained 1.99% to Rs 2,932.90. The stock hit a high of Rs 2,948 in intraday trade, which is record high for the counter. The stock hit a low of Rs 2,878 in intraday trade.
Hero MotoCorp rose 1.98% after Sunil Kant Munjal resigned from the board of directors of the company as part of a realignment of business interest amongst the promoter Munjal family. Sunil Kant Munjal's resignation from the company's board of directors comes as his tenure as the Joint Managing Director of the company ended yesterday, 16 August 2016. Hero MotoCorp (HMCL) announced on 28 July 2016 that Sunil Kant Munjal decided to step down as Joint Managing Director of the company as part of a realignment of business interest amongst the promoter Munjal family. Sunil Kant Munjal will focus on his independent and core businesses, and will pursue new business interests. This realignment will not impact the overall promoter shareholding, strategic direction or operational management of the company, HMCL had said at that time. Sunil Kant Munjal will henceforth not be classified as a promoter of the company. However, he will continue to hold 32,500 equity shares of the company representing 0.02% of the issued and paid up share capital of the company in his individual capacity.
On 9 August 2016, the board of directors of the company reappointed Pawan Munjal as the Chairman, Managing Director & Chief Executive Officer of the company for a period of five years with effect from 1 October 2016. His current tenure comes to an end on 30 September 2016. The total holding of promoters in HMCL stood at 34.64% as on 30 June 2016.
Most metal shares rose. Steel Authority of India (up 4.45%), NMDC (up 3.45%), Tata Steel (up 3.19%), JSW Steel (up 1.25%), Jindal Steel & Power (up 1.11%), Hindalco Industries (up 1.10%), Vedanta (up 0.71%) and Bhushan Steel (up 0.62%), edged higher. Hindustan Copper (down 0.16%), National Aluminium Company (down 0.32%) and Hindustan Zinc (down 1.74%), edged lower.
Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for September 2016 delivery was currently down 1.04% at $2.1495 per pound on the COMEX.
Lupin rose 0.16%. The company announced during trading hours today, 17 August 2016, that its US subsidiary, Gavis Pharmaceuticals LLC., U.S.A. has received final approval from the United States Food and Drug Administration (USFDA) to market a generic equivalent of Actavis Labs FL, Inc's potassium chloride extended release capsules USP, 8 mEq and 10 mEq. The drug is indicated for the treatment of patients with hypokalemia, with or without metabolic alkalosis, in digitalis intoxications and in patients with hypokalemic familial periodic paralysis. It is also indicated for the prevention of hypokalemia in patients who would be at a particular risk if hypokalemia were to develop, e.g., digitalized patients or patients with significant cardiac arrhythmias. The drug had annual US sales of $75.4 million, as per IMS MAT June 2016 data.
Piramal Enterprises (PEL) rose 3.64% after the company's announcement that its wholly owned US subsidiary has entered into an agreement to acquire 100% stake in Ash Stevens Inc, a US-based contract development and manufacturing organisation (CDMO), in an all cash deal. PEL will pay $42.95 million for the acquisition. There will be additional earn-out consideration capped at $10 million, subject to achievement of certain EBITDA targets, payable over the next six months. The transaction is expected to be completed by end of August, PEL said. This acquisition adds niche potent molecule manufacturing capabilities to the portfolio of services offered by PEL's pharma solutions business, the company said. Ash Stevens reported revenue of about $18.3 million in FY 2015 (twelve months ended 30 September 2015). The announcement was made after market hours yesterday, 16 August 2016.
InterGlobe Aviation gained 3.49% on reports that a foreign brokerage has upgraded its rating on the stock to buy from neutral. The foreign brokerage has reportedly said that given the asset-light structure and order book/delivery flexibility, InterGlobe Aviation will have 145 net aircraft by end of FY 2018. The brokerage said that A320neo planes delivery concerns are unwarranted. It may be recalled that InterGlobe Aviation had stated at the time of announcing its Q1 June 2016 earnings that the operation of A320neo planes in its fleet continues to be a challenge. The company was looking at slowing down taking deliveries of A320neo planes to allow the manufacturer of the engines for the A320neo planes to catch up on the production of upgraded engines, InterGlobe Aviation said at that time.
Zee Learn and Tree House Education & Accessories jumped by 11.26% and 15.51%, respectively, after the board of directors of both the companies approved revised scheme of merger. The board of directors of Zee Learn (ZLL) and Tree House Education & Accessories (THEAL) approved revised share swap ratio of 1:1 for the merger of THEAL with ZLL. The revised scheme of amalgamation will put to rest uncertainty and anxiety within different stakeholders and help mitigating the recent developments in operational performance of THEAL over the past few quarters, ZLL said in a statement. It will further strengthen ZLL's position in the educational landscape, it said. Both ZLL and THEAL are in similar line of business activities and with a view to consolidate the business operations, the board of directors of both the companies have decided to amalgamate the companies. Both ZLL and THEAL are primarily engaged into the business of pre-school activities.
The board of directors of both the companies on 23 December 2015 had approved a scheme of amalgamation of THEAL with ZLL subject to requisite statutory and regulatory approvals. On 1 June 2016, ZLL decided to keep on hold the scheme as part of evaluation of the results of THEAL for the quarter and year ended 31 March 2016. Following this, the board of directors of ZLL had authorised the Amalgamation Committee to suggest the way forward to salvage the deal of amalgamation to ensure consolidation of business in the best interest of the shareholders. Accordingly, the board of directors of both the companies accorded approval to the revised scheme including appointed date and share exchange ratio suggested by the Amalgamation Committee for the proposed amalgamation of the companies.
KNR Constructions surged 9.08% to Rs 698.85, with the stock extending previous session's gains triggered by the company posting robust Q1 results. Shares of KNR Constructions rose 2.97% to Rs 640.70 yesterday, 16 August 2016, after the company announced strong Q1 results. The company's net profit jumped 86.6% to Rs 30.21 crore on 73.9% growth in net sales to Rs 303.64 crore in Q1 June 2016 over Q1 June 2015. The result was announced on Sunday, 14 August 2016. The stock market remained closed on 15 August 2016 for a holiday.
Key benchmark indices fell for second day in a row. The Sensex has lost 147.03 points or 0.52% in two trading sessions from its close of 28,152.40 on 12 August 2016. The Sensex has declined 46.49 points or 0.17% in this month so far (till 17 August 2016). The Sensex has risen 1,887.83 points or 7.23% in calendar year 2016 so far (till 17 August 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,510.76 points or 24.5%. The Sensex is off 284.59 points or 1.01% from a 52-week high of 28,289.96 hit on 9 August 2016. The Sensex is off 2,019.37 points or 6.73% from a record high of 30,024.74 hit on 4 March 2015.
Infosys edged lower, with the stock extending previous trading session's decline triggered by the company's announcement that it had lost a contract from Royal Bank of Scotland. Reliance Industries moved lower, with the stock extending losses registered during the previous trading session triggered by media reports that the petroleum ministry has slapped a penalty of nearly $250 million on the company. Tata Motors eked out small gains after global credit rating agency Standard & Poor's Global Ratings upgraded its long-term corporate rating on Tata Motors to ‘BB+' from 'BB' earlier, citing improvement in the company's competitive position following the better performance of its 100% subsidiary, Jaguar Land Rover Automotive PLC (JLR).
Piramal Enterprises gained after the company's announcement that its wholly owned US subsidiary has entered into an agreement to acquire 100% stake in Ash Stevens Inc, a US-based contract development and manufacturing organisation (CDMO), in an all cash deal. InterGlobe Aviation edged higher on reports that a foreign brokerage has upgraded its rating on the stock to buy from neutral. Shares of Zee Learn and Tree House Education & Accessories both surged after the board of directors of both the companies approved revised scheme of merger.
The Sensex fell 59.24 points or 0.21% to settle at 28,005.37, its lowest closing level since 11 August 2016. The Sensex fell 104.47 points, or 0.37% at the day's low of 27,960.14. The index rose 109.69 points, or 0.39% at the day's high of 28,174.30.
The Nifty 50 index fell 18.50 points or 0.21% to settle at 8,624.05, its lowest closing level since 11 August 2016. The Nifty fell 38.95 points, or 0.45% at the day's low of 8,603.60. The index rose 24.55 points, or 0.28% at the day's high of 8,667.10.
The market breadth indicating the overall health of the market was positive. On BSE, 1,452 shares rose and 1,258 shares fell. A total of 174 shares were unchanged. The BSE Mid-Cap index rose 0.69%. The BSE Small-Cap index rose 0.55%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2839 crore, lower than turnover of Rs 3314.56 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE IT index (down 1.67%), the S&P BSE Teck index (down 1.35%), the S&P BSE FMCG index (down 0.31%), the S&P BSE Oil & Gas index (down 0.25%) underperformed the Sensex. The S&P BSE Power index (down 0.13%), the S&P BSE Utilities index (down 0.11%), the S&P BSE Energy index (down 0.09%), the S&P BSE Consumer Durables index (up 0.03%), the S&P BSE Capital Goods index (up 0.07%), the S&P BSE Realty index (up 0.08%), the S&P BSE Bankex (up 0.1%), the S&P BSE Finance index (up 0.21%), the S&P BSE Industrials index (up 0.24%), the S&P BSE Telecom index (up 0.27%), the S&P BSE Healthcare index (up 0.52%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.61%), the S&P BSE Auto index (up 0.84%), the S&P BSE Basic Materials index (up 1.01%) and the S&P BSE Metal index (up 2.06%) outperformed the Sensex.
In overseas stock markets, European stocks edged lower ahead of the closely-watched release of the US Federal Reserve's latest minutes. Most Asian stocks fell after New York Fed President William Dudley said the Federal Reserve could raise interest rates as soon as September, prompting investors to pause after rallies in recent weeks.
US stocks eased from record highs yesterday, 16 August 2016, with the S&P 500 losing 0.55% as investors weighed hawkish comments by Federal Reserve officials against sharp gains for oil futures, a weakening dollar and fresh consumer-price data that showed US inflation remains tepid. Dudley said a rate hike in September was possible, while Atlanta Fed President Dennis Lockhart said the US economy is likely strong enough for at least one rate increase before the end of 2016, with two a possibility. Dudley cited evidence of wage gains and a tighter labor market that could boost inflation. Their comments came ahead of an annual meeting of central bankers from around the world in Jackson Hole, Wyoming, next week.
Reliance Industries lost 1.09%, with the stock extending losses registered during the previous trading session triggered by media reports that the petroleum ministry has slapped a penalty of nearly $250 million on the company. According to reports, the petroleum ministry has slapped a penalty of nearly $250 million on the company to make good the government's loss of "profit petroleum" owing to the firm's inability to meet the natural gas production targets from the Krishna-Godavari (KG) D6 block. The stock had fallen 1.04% to settle at Rs 1,024.20 yesterday, 16 August 2016. The KG-D6 fields started production in April 2009. The current production of around 8 million metric standard cubic metres per day (mmscmd) is a far cry from the peak of over 69 mmscmd achieved in early 2010, reports suggested. The block was envisaged to produce more than 80 mmscmd of the fuel, reports indicated. Profit petroleum is the main source of revenue for the government from a hydrocarbon block.
IT stocks edged lower. TCS (down 2.51%), Wipro (down 1.4%), HCL Technologies (down 1.25%), Tech Mahindra (down 1.95%), MindTree (down 0.33%) declined. Oracle Financial Services Software (up 0.47%) and Hexaware Technologies (up 1.89%) rose.
Infosys lost 1.52%, with the stock extending previous trading session's decline triggered by the company's announcement that it had lost a contract from Royal Bank of Scotland. The stock had fallen 1.16% to settle at Rs 1,050.95 yesterday, 16 August 2016. The company announced before market hours yesterday, 16 August 2016, about losing a contract from Royal Bank of Scotland (RBS) as RBS decided not to pursue its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G). Subsequent to this decision by RBS, Infosys will carry out an orderly ramp-down of about 3,000 employees, primarily in India, over the next few months. Infosys was a W&G program technology partner for consulting, application delivery and testing services. As per reports, the decision of RBS will impact revenues of Infosys for the year ending 31 March 2017 (FY 2017) by about $40 million.
Stocks of state-run banks moved higher. Indian Bank (up 6.03%), Central Bank of India (up 3.74%), Corporation Bank (up 1.23%), Canara Bank (up 2.38%), Punjab National Bank (up 1.75%), Allahabad Bank (up 1.89%), Union Bank of India (up 1.66%), Bank of Baroda (up 0.97%), Syndicate Bank (up 1.04%), Dena Bank (up 0.55%), Vijaya Bank (up 1.59%), Bank of India (up 0.49%), UCO Bank (up 0.87%), IDBI Bank (up 0.29%), Andhra Bank (up 1.25%) and United Bank of India (up 0.23%), edged higher. Bank of Maharashtra (down 1.29%) and State Bank of India (down 0.08%) edged lower.
Stocks of private sector banks witnessed a mixed trend. Federal Bank (down 1.23%), Kotak Mahindra Bank (down 1.03%), IndusInd Bank (down 0.53%), ICICI Bank (down 0.56%), City Union Bank (down 0.31%), edged lower. HDFC Bank (up 0.92%), Yes Bank (up 0.66%) and Axis Bank (up 1.14%) edged higher.
Auto stocks gained on renewed buying. Maruti Suzuki India (up 0.37%), Mahindra & Mahindra (M&M) (up 0.41%), TVS Motor Company (up 4.79%), Escorts (up 2.31%), and Ashok Leyland (up 0.17%) gained. Eicher Motors shed 1.08%.
Tata Motors rose 0.66% after rating agency Standard & Poor's Global Ratings upgraded its long-term corporate rating on Tata Motors to 'BB+' from 'BB' earlier, citing improvement in the company's competitive position following the better performance of its 100% subsidiary, Jaguar Land Rover Automotive PLC (JLR). S&P has simultaneously raised its issue rating on Tata Motors' US-dollar-denominated senior unsecured notes to 'BB+' from 'BB'. The outlook on the rating is stable. The stable outlook reflects S&P's view that Tata Motors can maintain steady profitability, especially at JLR, supporting its financial position with ratio of funds from operations (FFO) to debt of about 40% over the next 12-24 months, the rating agency said.
According to S&P, JLR has launched new models successfully, extended existing ones, and expanded into new market segments. JLR also helped strengthen Tata Motors' financial position and its ability to withstand moderate volatility and the risks from the UK's recent vote to leave the European Union (Brexit), the rating agency said in a statement. JLR's improved competitive position will enable Tata Motors to register good operating performance over the next two years in the form of revenue growth and higher EBITDA (earnings before interest, taxation, depreciation and amortization) margin, S&P said. JLR is British luxury car unit of Tata Motors.
Bajaj Auto gained 1.99% to Rs 2,932.90. The stock hit a high of Rs 2,948 in intraday trade, which is record high for the counter. The stock hit a low of Rs 2,878 in intraday trade.
Hero MotoCorp rose 1.98% after Sunil Kant Munjal resigned from the board of directors of the company as part of a realignment of business interest amongst the promoter Munjal family. Sunil Kant Munjal's resignation from the company's board of directors comes as his tenure as the Joint Managing Director of the company ended yesterday, 16 August 2016. Hero MotoCorp (HMCL) announced on 28 July 2016 that Sunil Kant Munjal decided to step down as Joint Managing Director of the company as part of a realignment of business interest amongst the promoter Munjal family. Sunil Kant Munjal will focus on his independent and core businesses, and will pursue new business interests. This realignment will not impact the overall promoter shareholding, strategic direction or operational management of the company, HMCL had said at that time. Sunil Kant Munjal will henceforth not be classified as a promoter of the company. However, he will continue to hold 32,500 equity shares of the company representing 0.02% of the issued and paid up share capital of the company in his individual capacity.
On 9 August 2016, the board of directors of the company reappointed Pawan Munjal as the Chairman, Managing Director & Chief Executive Officer of the company for a period of five years with effect from 1 October 2016. His current tenure comes to an end on 30 September 2016. The total holding of promoters in HMCL stood at 34.64% as on 30 June 2016.
Most metal shares rose. Steel Authority of India (up 4.45%), NMDC (up 3.45%), Tata Steel (up 3.19%), JSW Steel (up 1.25%), Jindal Steel & Power (up 1.11%), Hindalco Industries (up 1.10%), Vedanta (up 0.71%) and Bhushan Steel (up 0.62%), edged higher. Hindustan Copper (down 0.16%), National Aluminium Company (down 0.32%) and Hindustan Zinc (down 1.74%), edged lower.
Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for September 2016 delivery was currently down 1.04% at $2.1495 per pound on the COMEX.
Lupin rose 0.16%. The company announced during trading hours today, 17 August 2016, that its US subsidiary, Gavis Pharmaceuticals LLC., U.S.A. has received final approval from the United States Food and Drug Administration (USFDA) to market a generic equivalent of Actavis Labs FL, Inc's potassium chloride extended release capsules USP, 8 mEq and 10 mEq. The drug is indicated for the treatment of patients with hypokalemia, with or without metabolic alkalosis, in digitalis intoxications and in patients with hypokalemic familial periodic paralysis. It is also indicated for the prevention of hypokalemia in patients who would be at a particular risk if hypokalemia were to develop, e.g., digitalized patients or patients with significant cardiac arrhythmias. The drug had annual US sales of $75.4 million, as per IMS MAT June 2016 data.
Piramal Enterprises (PEL) rose 3.64% after the company's announcement that its wholly owned US subsidiary has entered into an agreement to acquire 100% stake in Ash Stevens Inc, a US-based contract development and manufacturing organisation (CDMO), in an all cash deal. PEL will pay $42.95 million for the acquisition. There will be additional earn-out consideration capped at $10 million, subject to achievement of certain EBITDA targets, payable over the next six months. The transaction is expected to be completed by end of August, PEL said. This acquisition adds niche potent molecule manufacturing capabilities to the portfolio of services offered by PEL's pharma solutions business, the company said. Ash Stevens reported revenue of about $18.3 million in FY 2015 (twelve months ended 30 September 2015). The announcement was made after market hours yesterday, 16 August 2016.
InterGlobe Aviation gained 3.49% on reports that a foreign brokerage has upgraded its rating on the stock to buy from neutral. The foreign brokerage has reportedly said that given the asset-light structure and order book/delivery flexibility, InterGlobe Aviation will have 145 net aircraft by end of FY 2018. The brokerage said that A320neo planes delivery concerns are unwarranted. It may be recalled that InterGlobe Aviation had stated at the time of announcing its Q1 June 2016 earnings that the operation of A320neo planes in its fleet continues to be a challenge. The company was looking at slowing down taking deliveries of A320neo planes to allow the manufacturer of the engines for the A320neo planes to catch up on the production of upgraded engines, InterGlobe Aviation said at that time.
Zee Learn and Tree House Education & Accessories jumped by 11.26% and 15.51%, respectively, after the board of directors of both the companies approved revised scheme of merger. The board of directors of Zee Learn (ZLL) and Tree House Education & Accessories (THEAL) approved revised share swap ratio of 1:1 for the merger of THEAL with ZLL. The revised scheme of amalgamation will put to rest uncertainty and anxiety within different stakeholders and help mitigating the recent developments in operational performance of THEAL over the past few quarters, ZLL said in a statement. It will further strengthen ZLL's position in the educational landscape, it said. Both ZLL and THEAL are in similar line of business activities and with a view to consolidate the business operations, the board of directors of both the companies have decided to amalgamate the companies. Both ZLL and THEAL are primarily engaged into the business of pre-school activities.
The board of directors of both the companies on 23 December 2015 had approved a scheme of amalgamation of THEAL with ZLL subject to requisite statutory and regulatory approvals. On 1 June 2016, ZLL decided to keep on hold the scheme as part of evaluation of the results of THEAL for the quarter and year ended 31 March 2016. Following this, the board of directors of ZLL had authorised the Amalgamation Committee to suggest the way forward to salvage the deal of amalgamation to ensure consolidation of business in the best interest of the shareholders. Accordingly, the board of directors of both the companies accorded approval to the revised scheme including appointed date and share exchange ratio suggested by the Amalgamation Committee for the proposed amalgamation of the companies.
KNR Constructions surged 9.08% to Rs 698.85, with the stock extending previous session's gains triggered by the company posting robust Q1 results. Shares of KNR Constructions rose 2.97% to Rs 640.70 yesterday, 16 August 2016, after the company announced strong Q1 results. The company's net profit jumped 86.6% to Rs 30.21 crore on 73.9% growth in net sales to Rs 303.64 crore in Q1 June 2016 over Q1 June 2015. The result was announced on Sunday, 14 August 2016. The stock market remained closed on 15 August 2016 for a holiday.
Key benchmark indices fell for second day in a row. The Sensex has lost 147.03 points or 0.52% in two trading sessions from its close of 28,152.40 on 12 August 2016. The Sensex has declined 46.49 points or 0.17% in this month so far (till 17 August 2016). The Sensex has risen 1,887.83 points or 7.23% in calendar year 2016 so far (till 17 August 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,510.76 points or 24.5%. The Sensex is off 284.59 points or 1.01% from a 52-week high of 28,289.96 hit on 9 August 2016. The Sensex is off 2,019.37 points or 6.73% from a record high of 30,024.74 hit on 4 March 2015.
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