Market extends gains
Stocks of public sector banks witnessed a mixed trend. Stocks of private sector banks were mostly lower. Pharma stocks gained on weak rupee. Metal & mining stocks gained for the second day in a row. L&T edged higher after the company reported strong Q2 September 2016 results.
The Sensex rose 91.03 points or 0.35% to settle at 26,051.81, its highest closing level since 18 November 2016. The index rose 169.71 points or 0.65% at the day's high of 26,130.49. The index lost 83.62 points or 0.32% at the day's low of 25,877.16.
The Nifty rose 31 points or 0.39% to settle at 8,033.30, its highest closing level since 18 November 2016. The index rose 52.90 points or 0.66% at the day's high of 8,055.20. The index lost 29.20 points or 0.36% at the day's low of 7,973.10.
The BSE Mid-Cap index rose 1.22%. The BSE Small-Cap index gained 1.54%. Both these indices outperformed the Sensex.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,922 shares rose and 665 shares fell. A total of 165 shares were unchanged.
The total turnover on BSE amounted to Rs 2497.52 crore, higher than turnover of Rs 2306.61 crore registered during the previous trading session.
Among the sectoral indices on the BSE, the BSE Healthcare index (up 2.19%), the BSE Capital Goods index (up 1.3%), the BSE Metal index (up 2.32%) and the BSE Realty index (up 3.41%) outperformed the Sensex. The BSE Telecom index (down 0.01%) and the BSE Bankex index (up 0.05%) underperformed the Sensex.
Stocks of public sector banks witnessed a mixed trend. IDBI Bank (up 0.89%), State Bank of India (up 0.52%) and Punjab National Bank (up 0.07%) rose. Union Bank of India (down 0.83%), Bank of Baroda (down 0.49%) and Bank of India (down 0.26%) edged lower.
Stocks of private sector banks were mostly lower. HDFC Bank (down 1.04%), RBL Bank (down 0.96%), Kotak Mahindra Bank (down 0.64%), Yes Bank (down 0.53%) and IndusInd Bank (down 0.63%) declined. Axis Bank (up 1.94%) and ICICI Bank (up 0.63%) gained.
Pharma stocks gained on weak rupee. Ipca Laboratories (up 2.85%), Alkem Laboratories (up 1.57%), Glenmark Pharmaceuticals (up 1.49%), GlaxoSmithkline Pharmaceuticals (up 1.04%), Dr Reddy's Laboratories (up 0.43%) and Divi's Laboratories (up 0.05%) edged higher. Weakness in rupee could boost sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports.
In the foreign exchange market, the partially convertible rupee was hovering at 68.495, compared with its close of 68.25 during the previous trading session.
Sun Pharmaceutical Industries (Sun Pharma) rose 1.64% after the company announced the execution of definitive agreements by its wholly owned subsidiary, for the acquisition of 85.1% of JSC Biosintez, a Russian pharmaceutical company engaged in manufacture and marketing of pharmaceutical products in Russia and CIS region. The announcement was made before trading hours today, 23 November 2016. The equity consideration for the 85.1% stake is $24 million. Sun Pharma would also assume a debt of approximately $36 million as part of this transaction. Biosintez is a Russian pharmaceutical company focusing on the hospital segment with annual revenues of approximately $52 million for 2015. It has a manufacturing facility in Penza region with capabilities to manufacture a wide variety of dosage forms including pharmaceuticals for injections, blood substitutes, blood preservatives, ampoules, tablets, ointment, creams, gels, suppositories, APIs, etc.
The transaction, expected to be completed by end of 2016, is subject to approval of the Russian Federal AntiMonopoly Service and other closing conditions. As per IMS (MAT September 2016), the Russian pharmaceutical market recorded sales of approximately $10 billion. The market recorded a growth of 7.4% in local currency terms as per IMS.
In a separate announcement after market hours yesterday, 22 November 2016, Sun Pharma said it received a letter from the Chief Financial Officer (CFO), Uday Baldota that he would be tendering his resignation as the CFO of Sun Pharmaceutical Industries to be effective with effect from in and around April 2017 due to his shifting to United States of America in and around April 2017 to look after the business of Taro Pharmaceutical Industries, a subsidiary of Sun Pharmaceutical Industries as its Chief Executive Officer.
Lupin gained 5.22% after the company announced that it has received tentative approval for its Abacavir Sulfate and Lamivudine Tablets, 600 mg/300 mg from the United States Food and Drug Administration (FDA) to market a generic version of ViiV Healthcare Company's Epzicom Tablets, 600 mg/300 mg. Lupin's Abacavir Sulfate and Lamivudine Tablets, 600 mg/300 mg are the AB rated generic equivalent of ViiV Healthcare Company's Epzicom Tablets, 600 mg/300 mg. Abacavir Sulfate and Lamivudine Tablets, 600 mg/300 mg in combination with other antiretroviral agents is indicated for the treatment of human immunodeficiency virus type 1 (HIV-1) infection. Epzicom Tablets had US sales of $426 million as per IMS MAT September 2016 data. The announcement was made during market hours today, 23 November 2016.
Aurobindo Pharma rose 1.73% after the company with respect to news reports suggesting that Vietnam Government blacklisted Aurobindo Pharma on quality issues, clarified during market hours today, 23 November 2016 that it has not been blacklisted and continues to export to Vietnam. Vietnam regulatory authority has introduced an additional step of analysis on importing medicines in Vietnam before release of batches and the total sales estimated is around $1million per annum and it is immaterial, company added. The company is appropriately responding and the event has no perceived impact on the operations and exports.
Cipla was up 0.45% after the company said that Chase Pharmaceuticals Corporation, a Delaware based corporation (Chase), in which Cipla's UK arm, Cipla UK has 16.7% stake, has been acquired by a subsidiary of Allergan, plc. The announcement was made during market hours today, 23 November 2016. Allergan has agreed to pay $125 million upfront plus potential regulatory and commercial milestones of up to $875 million to the shareholders of Chase. Cipla UK acquired a minority stake in Chase in May 2014 via a syndicated venture investment.
Wockhardt fell 2% after the company announced that US Food and Drug Administration has issued a warning letter to its stepdown subsidiary, C P Pharmaceuticals, Wrexham, United Kingdom. The announcement was made during market hours today, 23 November 2016. Wockhardt said that currently, there is no business being conducted from C P Pharmaceuticals to the US market. C P Pharmaceuticals has already initiated required steps to address the concerns raised by US Food and Drug Administration (USFDA) and will be responding to the agency within the prescribed time, Wockhardt said.
Metal & mining stocks gained for the second day in a row. JSW Steel (up 0.73%), Hindustan Copper (up 0.72%), Hindalco Industries (up 4.11%), Hindustan Zinc (up 2.24%), Tata Steel (up 3.8%), Steel Authority of India (Sail) (up 1.67%), NMDC (up 1.01%) and Jindal Steel & Power (up 0.3%) gained. National Aluminum Company was flat.
Vedanta rose 5.03%, with the stock extending yesterday's 4.90% rise triggered by the company's board approving to raise Rs 300 crore through issue of non-convertible debentures. The announcement was made during market hours yesterday, 22 November 2016. Vedanta announced that it has received board's approval to raise Rs 300 crore through issue of 3,000 secured redeemable non-cumulative non-convertible debentures (NCDs) of face value of Rs 10 lakh each. The tenure of the NCDs is three years and five months from the date of allotment, while date of maturity is 22 April 2020.
Engineering and construction major L&T rose 2.16% after consolidated net profit jumped 84.31% to Rs 1434.63 crore on 8.73% growth in total income to Rs 25491.96 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 22 November 2016.
The company's consolidated profit after tax (PAT) before exceptional items rose 41% to Rs 1032 crore in Q2 September 2016 over Q2 September 2015. As a part of implementation of its strategic plan, the company has divested the General Insurance business. Gross revenue on consolidated basis rose 8.2% to Rs 25011 crore in Q2 September 2016 over Q2 September 2015. Consolidated order inflow increased by 11% year on year (YoY) to Rs 31119 crore in Q2 September 2016. International orders constituted 24% of the total order inflow. Consolidated order book stood at Rs 251773 crore as on 30 September 2016, higher by 4% on YoY basis. International order book constituted 29% of the total order book.
On the business outlook, L&T said, it has integrated range of comprehensive offerings in its various operating segments and is implementing its strategic plan of profitable growth and higher return on equity. On the international front, the company continues to strengthen its position and pursue select prospects in the core infrastructure and energy sector. L&T said it is well placed to benefit from the emerging opportunities and sustain its leadership position across the sectors.
Bharat Heavy Electricals (Bhel) rose 0.44% after the company announced that it commissioned 93 megawatts (MW) steam turbine based captive power plant (CPP) at Hazira in Gujarat for Reliance Industries (RIL). The announcement was made during market hours today, 23 November 2016. This is the second unit of 4X93 MW steam turbine based CPP, being set up by Bhel for RIL at Hazira. For RIL, the company is also setting up a 3X93 MW steam turbine based CPP at Dahej in Gujarat. The CPPs are set up to meet the power requirements of RIL's refinery projects at Hazira and Dahej. Bhel has so far commissioned two units each at Hazira and Dahej projects. The remaining three units are also planned for commissioning during the current financial year.
Bharti Airtel fell 1.22%. The company announced that Airtel Payments Bank, a subsidiary of Bharti Airtel rolled out a pilot of its banking services in Rajasthan. The pilot is aimed at testing systems and processes ahead of a full scale pan Indian launch. With this, Airtel Bank becomes the first payments bank in the country to go LIVE. Customers in towns and villages across Rajasthan will now be able to open bank accounts at Airtel retail outlets, which will also act as Airtel banking points and offer a range of basic, convenient banking services. Airtel Bank will commence the pilot with banking points at 10,000 Airtel retail outlets. The announcement was made during market hours today, 23 November 2016.
Separately, the company announced that it has successfully completed the acquisition of rights to use 20 MHz of spectrum in 2300 Band (BWA) from Aircel, for Andhra Pradesh circle following the receipt of all necessary approvals and satisfying all the conditions (including conditions stated in the Spectrum Trading Guidelines). With this, Bharti Airtel has completed the transaction in all 8 telecom circles. The announcement was made after market hours yesterday, 22 November 2016.
The Sensex has risen 286.67 points or 1.11% in two trading sessions from its close of 25,765.14 on 21 November 2016. The Sensex has fallen 1,878.40 points or 6.72% in November 2016 so far (till 23 November 2016). The Sensex has fallen 65.73 points or 0.25% in calendar year 2016 so far (till 23 November 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 3,557.20 points or 15.81%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 3,025.47 points or 10.4%. The Sensex is off 3,972.93 points or 13.23% from a record high of 30,024.74 hit on 4 March 2015.
In overseas stock markets, European stocks witnessed a mixed trend. Euro zone business expanded at the fastest rate this year in November, thanks to strong activity at manufacturers and a spike in new orders, even as firms generally held prices steady, a survey showed today, 23 November 2016. IHS Markit's euro zone flash composite Purchasing Managers' Index, seen as a good overall growth indicator, jumped to 54.1 from October's 53.3, the highest reading this year and just shy of last December's 54.3. It was far above the 50 point line indicating growth in activity.
Asian stocks edged higher in the wake of recent rally on the Wall Street. Japanese stock markets were closed for a holiday. Latest data showed that Chinese business confidence improved in November. The MNI Deutsche Borse Group business sentiment indicator rose 1.7% to 53.1 in November, after falling 6.5% in October. In mainland China, the Shanghai Composite ended 0.22% lower. In Hong Kong, the Hang Seng settled 0.01% lower.
US stocks closed at record highs yesterday, 22 November 2016, extending recent gains. The Dow Jones Industrials Average and S&P 500 cleared psychological milestones with Dow closing above the 19,000 level for the first time while major indexes simultaneously reached record highs. US markets have been in a strong uptrend since the presidential election two weeks ago. Donald Trump's unexpected victory was viewed as a positive for Wall Street, because the president-elect is expected to advocate for policiesincluding massive corporate tax cuts and financial and environmental deregulationseen as supportive for economic growth.
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