Key benchmark indices were trading higher in mid-morning trade. At 11:22 IST, the barometer index, the S&P BSE Sensex, was up 142.80 points or 0.45% at 32,067.21. The Nifty 50 index was up 40.65 points or 0.41% at 10,057.60. Telecom stocks rose.
The Sensex was trading above psychologically important 32,000 mark in early trade after breaching that level in opening trade. The Sensex and the Nifty, both hit their highest intraday levels in more than two weeks in morning trade.
The Sensex rose 174.05 points, or 0.55% at the day's high of 32,098.46 in morning trade, its highest intraday level since 22 September 2017. The index rose 43.13 points, or 0.14% at the day's low of 31,967.54 in early trade. The Nifty rose 50.30 points, or 0.50% at the day's high of 10,067.25 in mid-morning trade, its highest intraday level since 22 September 2017. The index fell 20.60 points, or 0.21% at the day's low of 10,037.55 in early trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,495 shares rose and 880 shares fell. A total of 106 shares were unchanged.
Engineering and construction major L&T was up 0.60% at Rs 1,149.65 after the company announced during trading hours today, 11 October 2017, that its wholly-owned subsidiary, L&T Hydrocarbon Engineering, has bagged an offshore contract for the transportation & installation - Daman development project from ONGC valued at approximately Rs 1150 crore. The contract, won against international competitive bidding, encompasses total engineering, procurement, construction, installation and commissioning for the project.
Drug major Lupin was down 0.43% to Rs 1,056. The company announced during trading hours today, 11 October 2017, that its US subsidiary, Lupin, Inc., has acquired Symbiomix Therapeutics, LLC. Lupin had entered into an option to acquire the company earlier this year. Symbiomix is a privately held company focused on bringing innovative therapies to market for gynecologic infections that can have serious health consequences. The acquisition has been made for a cash consideration of $150 million including a $50 million upfront and other time-based payments.
In addition, there are sales based contingent payments. The acquisition is funded from internal funds. The transaction was closed today, 11 October 2017. The acquisition of Symbiomix and the Solosec franchise significantly expands Lupin's branded women's health specialty business, which is presently anchored by Methergine (methylergonovine) tablets.
Cement shares were mixed. UltraTech Cement (down 0.26%) and Ambuja Cements (down 0.38%), edged lower. ACC was up 0.31%.
Grasim Industries was up 1.50%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Telecom stocks rose. Bharti Airtel (up 3.54%), Idea Cellular (up 2.88%), Tata Teleservices (Maharashtra) (up 1.74%) and Reliance Communications (up 1.20%), edged higher. MTNL was down 1.67%.
Telecom tower infrastructure provider Bharti Infratel was up 2.52%. A consortium of investors led by private equity firm KKR and Canadian Pension Plan Investment Board (CPP) are reportedly sewing up the biggest consolidation deal in telecom infrastructure by helping Bharti Infratel acquire Indus Towers.
According to reports, Bharti Infratel will buy out either all or almost the entire 58% shareholding of other partners Vodafone, Idea Cellular and Providence Equity Partners in Indus Towers. Bharti Infratel currently owns 42% in Indus Towers, which has a portfolio of 1,23,000 towers. Vodafone is likely to retain 8-10% stake to enjoy any future upside. Infratel has the right of first refusal on Vodafone and Idea's stakes in Indus Towers, reports added.
On the macro front, India's economic growth for 2017 and 2018 will be slower than earlier projections, the International Monetary Fund (IMF) said in its latest World Economic Outlook released on 10 October 2017. The report cited lingering impact of demonetisation and the Goods and Services Tax (GST) for the expected slow down during the current and the next year. The IMF projected India to grow at 6.7% in 2017 and 7.4% in 2018, which are 0.5% and 0.3% less than the projections earlier this year, respectively. The IMF has meanwhile revised upwards, India's growth performance for 2016 in its latest calculations, owing to strong government spending and data revisions in India, which is now 7.1% as opposed to 6.8% in April.
Overseas, Asian stocks were mixed. The US stock market rose to record highs on Tuesday after Wal-Mart announced a large buyback and Honeywell said it was splitting into two. The Dow Jones Industrial Average gained 0.31% to hit a new all time high, while the S&P 500 index climbed 0.23%, and the NASDAQ Composite index added 0.11%.
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