A divergent trend was witnessed as the barometer index, the S&P BSE Sensex, provisionally settled with tiny gains while the Nifty 50 index registered minor losses in a volatile session of trade. The barometer index, the S&P BSE Sensex, rose 7.79 points or 0.03% at 31,103.49, as per the provisional closing data. The Nifty 50 index fell 9.50 points or 0.1% at 9,606.90, as per the provisional closing data.
The Sensex gained 165.07 points or 0.53% at the day's high of 31,260.77 in mid-afternoon trade, its highest level since 9 June 2017. The index fell 33.36 points or 0.11% at the day's low of 31,062.34 in late trade. The Nifty gained 37.75 points or 0.39% at the day's high of 9,654.15 in mid-afternoon trade, its highest level since 9 June 2017. The index fell 21 points or 0.22% at the day's low of 9,595.40 in late trade.
Stocks drifted higher in early trade taking a lead from firm Asian stocks and as retail inflation and industrial output data released after market hours yesterday, 12 June 2017 back home boosted expectations of an interest rate cut by the Reserve Bank of India (RBI) at its next policy meeting in August 2017. Key indices extended gains as the day's trade progressed and hit intraday high in mid-afternoon trade tracking positive European stocks. However, stocks pared almost entire gains in late trade.
The market breadth, indicating the overall health of the market, turned negative from positive in late trade. On the BSE, 1,354 shares fell and 1,320 shares rose. A total of 192 shares were unchanged.
The total turnover on BSE amounted to Rs 3430.67 crore, higher than the turnover of Rs 3281.25 crore registered during the previous trading session.
IT stocks declined. Tech Mahindra (down 1.13%), TCS (down 1.24%), Infosys (down 0.6%), HCL Technologies (down 2.29%) and MindTree (down 1.31%), declined. Hexaware Technologies (up 0.46%) and Oracle Financial Services Software (up 0.2%) rose.
Wipro fell 1.65%. The company said that in view of market activity in the company's shares on Monday, 12 June 2017, the New York Stock Exchange (NYSE) has contacted the company in accordance with its usual practice. The company felt that it was important to clarify to the market that the payable date and ex-dividend date for its ADR (American Depository Receipts) bonus issue, or stock dividend, are yet to be determined, Wipro said.
At NYSE, for ADR stock dividends or bonus issue, the ex-dividend date is set as the first business day after the stock dividend is paid, which is also after the record date. Therefore NYSE has not yet declared an ex-dividend date for Wipro's ADR program. Once the payable date is declared NYSE will announce the ex-dividend date for the ADR, Wipro clarified. The announcement was made after market hours yesterday, 12 June 2017.
Sun Pharmaceutical Industries rose 0.62% after the company said one of its wholly-owned subsidiaries received US drug regulator's approval for generic Zetia tablets. The announcement was made before trading hours today, 13 June 2017.
Sun Pharmaceutical Industries announced that one of its wholly-owned subsidiaries has received final approval from US Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for generic version of Zetia, (ezetimibe) tablets 10mg. These generic ezetimibe tablets are therapeutic equivalents of Merck's Zetia tablets.
As per IMS, ezetimibe tablets had annual sales of approximately $2.7 billion in the US for the 12 months ended April 2017. Zetia is used to help lower cholesterol in the blood.
On the macro front, the index of industrial production (IIP) rose by 3.1% in April led by robust growth in electricity generation, data showed yesterday, 12 June 2017. IIP grew by 6.5% in April last year. The CSO also revised upwards the IIP growth figure for March to 3.75% from its provisional estimate of 2.7%. While presenting the March 2017 data, the IIP base year was revised from 2004-05 to 2011-12.
Another data released yesterday, 12 June 2017, showed that retail price inflation, as measured by the consumer price index (CPI), slowed to 2.18% in May from 2.99% in April 2017 as food prices started falling from their year-ago level. Inflation is now well below the Reserve Bank of India's (RBI) medium-term target of 4%, and at the lower end of its CPI projection of 2%-3.5% in the first half of the fiscal year.
Overseas, European and Asian stocks gained as investors took a cautiously optimistic stance ahead of a U.S. Federal Reserve policy meeting that could provide cue on the pace of rate hikes in the months to come. Major US stock-market benchmarks closed lower yesterday, 12 June 2017 weighed by a second straight session of firm losses in technology shares.
The US Federal Reserve will meet Tuesday and Wednesday, and investors expect the central bank to raise interest rates for the third time since December. Super-low unemployment, gains in factory output and other economic data pointing to a recovery in the US economy have led investors to believe that the Fed will lift rates.
Meanwhile, the Trump administration yesterday, 12 June 2017 proposed a wide-ranging rethinking of the rules governing the US financial sector in a report that makes scores of recommendations that have been on the banking industry's wish list for years.
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