Sensex holds 25,000 amid consolidation

Markets have regained some lost ground led by buying in index heavyweights. However, the selling pressure in pharma shares has capped the upside.

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At 14:30 pm, the S&P BSE Sensex is up 61 points to quote at 25,027 and the Nifty50 is up 19 points to trade at 7,634.

Top gainers from the Sensex pack are Tata Motors, Maruti Suzuki, Axis Bank, Reliance Industries, Tata Steel all up between 1%-4%.

Top losers on the Sensex are Sun Pharma, Dr. Reddy’s, Cipla, Gail (India), and Lupin, down between 1%-8% each.

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(updated 11:50am)

Benchmark indices continue to maintain negative trend amid choppy trades weighed down by pharma shares. However, the downside is limited due to buying demand among auto and index heavyweights shares like Reliance Industries and ITC.  

At 11:48 am, the S&P BSE Sensex is up 12 points to quote at 24,954 and the Nifty50 is down 3 points to trade at 7,618. Broader markets are underperforming the benchmark indices- BSE Midcap and Smallcap indices are down 0.3%-0.5%.  

"Expectations continue to favour upswings, though initial attempts to 7,680 could prompt some long liquidation. Symmetrical wedge, just above the breakout region, supports the continuation view, and a push beyond 7,680, could clear the path for 7,800/7,832. Alternatively a direct fall below 7,660 could cast doubts on the upside prospects," add Geojit BNP Paribas report.

Top losers from the Sensex pack are Lupin, Cipla, Sun Pharma and Dr Reddy’s Labs, all plunging between 2%-12.5%.

On the gaining side, Tata Motors, Tata Steel, Maruti Suzuki, RIL and Axis Bank are up 1%-3%.

Among other shares, City Union Bank has moved higher by 9% to Rs 96 on the BSE after a huge block deal executed on the counter.

Excel Industries has surged 16% to Rs 233 on the BSE after the company announced that its board approved buyback of equity shares of the company at a price not exceeding Rs 275 per share from the open market purchase.

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Updated at 10:50

Markets have turned weak mirroring losses in the Asian peers following weak US data indicating that the consumer spending has barely picked up last month. Meanwhile, participants remain edgy ahead of the March series futures and options contracts expiry due on Thursday.

At 10:50 am, the S&P BSE Sensex is down 45 points to quote at 24,921 and the Nifty50 is down 8 points to trade at 7,607.

Top 5 gainers include Hindalo, Maruti Suzuki, Axis Bank, RIL and Tata Steel up 1%-2.5%. Meanwhile, top 5 losers include Lupin, Cipla, Sun Pharma, Dr Reddy’s Lab and GAIL down 1.6%-11%.

Shares of pharmaceutical companies under pressure with the Nifty Pharma index hitting its 52-week low on the National Stock Exchange (NSE) in intra-day trade.
Lupin, Cipla, Glenmark Pharmaceuticals, Aurobindo Pharma, Sun Pharmaceuticals Industries, and Dr Reddy’s Laboratories from the Nifty Pharma index were down more than 3% each.

Lupin the largest loser among pharma pack, tanked 14% to Rs 1,280 in intra-day trade on the NSE. The stock is currently trading at its lowest level since August 28, 2014.

According to media reports, Lupin’s Mandideep unit in Madhya Pradesh was inspected by United States Food and Drug Administration (USFDA) in February.

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(updated at 9:50 am)

 
Markets have gathered pace and are trading firm with Sensex trading comfortably above the 25,000 mark led by Index heavyweights and financials.

At 9:50 am, the S&P BSE Sensex is up 57 points to quote at 25,024 and the Nifty50 is up 20 points to trade at 7,635.

Top 5 gainers include Hindalo, Maruti Suzuki, Axis Bank, RIL and Tata Steel up 1%-2.5%.

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(updated at 9:15 am)

 
Markets have opened the session on a cautious note mirroring lack of strength among the Asian peers following weak US data indicating that the consumer spending has barely picked up last month. Meanwhile, participants remain edgy ahead of the March series futures and options contracts expiry due on Thursday.

At 9:15 am, the S&P BSE Sensex is down 4 points to quote at 24,963 and the Nifty50 is up 3 points to trade at 7,618. In line with the largecaps, BSE Midcap and Smallcap indices are trading flat with marginal gains.

“While yesterday’s turn lower evolved on anticipated lines, the swing thereof of the Nifty from the 7,600 has brought prices back into the consolidation band of 7,650-7,600. Expectations continue to favour upswings, though initial attempts to 7,680 could prompt some long liquidation. Symmetrical wedge, just above the breakout region, supports the continuation view, and a push beyond 7680, could clear the path for 7,800/7,832. Alternatively a direct fall below 7,660 could cast doubts on the upside prospects,” according to Geojit BNP Paribas Financial Services technical note.

Among overseas markets, Asian shares struggled to find their footing on Tuesday after downbeat US economic data contributed to an uninspiring session on Wall Street and pressured the dollar.

MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.05% after wavering for most of the early session.

Australian shares slumped 0.3%, in their first day of trade following the long Easter weekend that also closed many markets in Europe.

Japan's Nikkei skidded 0.8% in early trading, not helped by mixed economic data released before the market opened.

Besides, oil prices fell in early Asian trade on Tuesday as concerns mount that a rally since January is fizzling out, while analysts forecast another rise to record levels for US crude stockpiles.

Back home, the government is likely to infuse additional capital of about Rs 5,050 crore in some public sector banks this week.

Further, participants are patiently waiting for the Reserve Bank of India (RBI) monetary policy review due on April 5 amid hopes of a 25 basis points cut in interest rates.

STOCKS IN NEWS

ONGC has approved an investment of Rs 340 billion over the next few years in its east coast oil and gas asset, in a bid to boost production and benefit from a change in government policy. However, the stock is trading 0.5%lower.

JSW Energy is looking at various distressed coal-fired power plants in anticipation of demand improving, an executive said, amid talk the company is buying a big power plant from Jindal Steel & Power. The stock is down 1%.

IDBI Bank is up 2% after it allotted 158 million equity shares, equivalent to 7.16 per cent stake, on preferential basis to Life Insurance Corporation of India (LIC), which now holds over 14 per cent stake in the state-run lender.

Dr Reddy’s Laboratories is trading flat after the drug major entered into an in-licensing agreement with US-based bio-pharmaceutical company XenoPort to develop and market the latter’s clinical-stage oral new chemical entity (NCE), XP23829, a potential treatment for moderate-to-severe chronic plaque psoriasis and for relapsing forms of multiple sclerosis (MS), in the US market.

Ashok Leyland on Monday sold shares worth Rs 299 crore in IndusInd Bank through an open market transaction. Asok Leyland is up 1% while IndusInd Bank is flat.

HDFC Bank is trading with modest gains after the country's second largest private sector lender, is set to raise up to Rs 5,000 crore by way of infrastructure bonds.

Tech Mahindra, the IT arm of the Mahindra Group, said it joined General Electric's Digital Alliance Program and will use GE's industrial internet platform to build more solutions in the power, oil & gas and transportation industries.  The stock is flat.

NTPC has gained 0.5% after it announced the commissioning of 660 MW unit-3 at Mouda Super thermal power station. 

Wipro announced a five-year partnership with the country's top food service company Jubilant FoodWorks to deliver energy management services and help reduce energy and operational costs. Jubilant FoodWorks is up 1% while Wipro is trading flat.

Watsa's Fairfax Financial Holdings plans to buy 33% of Bangalore International Airport Ltd from GVK Power & Infrastructure for Rs 2,149 crore. GVK Power is up 1%.

Shriram Transport Finance Company is planning to raise Rs 250 crore by issuing non-convertible debentures on private placement basis. The stock is up 1.5%.

 


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