HCL Technologies scales record high

Key benchmark indices were trading slightly higher in mid-morning trade as firmness in Asian stocks supported domestic bourses. The barometer index, the S&P BSE Sensex, was up 28.20 points or 0.14%, off close to 90 points from the day's high and up about 55points from the day's low. The market breadth, indicating the overall health of the market, was positive.

IT stocks edged higher with HCL Technologies scaling record high. Some pharma stocks edged lower. But, Sun Pharmaceutical Industries rose after the company said that the US FDA has granted its subsidiary final approval for its Abbreviated New Drug Application (ANDA) to market a generic version of Temodar, Temozolomide Capsules, 5 mg, 20 mg, 100 mg, 140 mg, 180 mg and 250 mg.

The market edged higher in early trade. It regained positive terrain after slipping into the red to hit fresh intraday low in morning trade. The 50-unit CNX Nifty regained psychological 6,000 mark after slipping below that mark for a brief period in morning trade. It was trading slightly higher in mid-morning trade.

Foreign institutional investors (FIIs) bought shares worth a net Rs 399.40 crore on Thursday, 13 February 2014, as per provisional data from the stock exchanges.

At 11:20 IST, the S&P BSE Sensex was up 28.20 points or 0.14% to 20,221.55. The index gained 119.67 points at the day's high of 20,313.02 in early trade. The index fell 27.27 points at the day's low of 20,166.08 in morning trade.

The CNX Nifty was up 7.35 points or 0.12% to 6,008.45. The index hit a high of 6,033.30 in intraday trade. The index hit a low of 5,990.80 in intraday trade, its lowest level since 6 February 2014.

The BSE Mid-Cap index was 16.70 points or 0.26% to 6,321.48. The BSE Small-Cap index was up 12.70 points or 0.2% at 6,295.19. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,019 shares rose and 808 shares fell. A total of 121 shares were unchanged.

Among the 30-share Sensex pack, 19 stocks fell and rest rose. Bharti Airtel (up 2.05%), Tata Motors (up 1.71%) and NTPC (up 1.46%) edged higher from the Sensex pack.

IT stocks edged higher. Infosys (up 0.84%), TCS (up 0.96%), Tech Mahindra (up 0.0.95%) and Wipro (up 0.01%) gained.

HCL Technologies rose 1.2% to Rs 1508.60 after hitting record high of Rs 1513.80 in intraday trade.

Some pharma stocks edged lower. Cipla (down 0.88%), Dr Reddy's Laboratories (down 0.8%) and Ranbaxy Laboratories (down 0.76%) declined.

Sun Pharmaceutical Industries rose 1.89% after the company announced after market hours on Thursday, 13 February 2014 that the US FDA has granted its subsidiary final approval for its Abbreviated New Drug Application (ANDA) to market a generic version of Temodar, Temozolomide Capsules, 5 mg, 20 mg, 100 mg, 140 mg, 180 mg and 250 mg.

Temozolomide Capsules, 5 mg, 20 mg, 100 mg, 140 mg, 180 mg and 250 mg are therapeutic equivalents of Merck Sharp & Dohme Corporation's Temodar Capsules. These Capsules have annual sales of approximately $ 400 million in the US. Temozolomide Capsules are indicated for the treatment of adult patients with newly diagnosed glioblastoma multiforme concomitantly with radiotherapy and then as maintenance treatment and for adult patients with refractory anaplastic astrocytoma who have experienced disease progression on a drug regimen containing nitrosourea and procarbazine. Temodar is the registered trademark of Merck Sharp & Dohme Corp

The company's consolidated net profit surged 73.73% to Rs 1531.09 crore on 51.59% increase in total income to Rs 4446.82 crore in Q3 December 2013 over Q3 December 2012. Sun Pharmaceutical Industries declared the Q3 result during market hours ton Thursday, 13 February 2014.

Sun Pharmaceutical Industries' branded generic sales in India rose 20% to Rs 947 crore in Q3 December 2013 over Q3 December 2012. US finished dosage sales rose 57% to $434 million (in $ terms) in Q3 December 2013 over Q3 December 2012. International formulation sales outside US rose 16% to $84 million (in $ terms) in Q3 December 2013 over Q3 December 2013. Overall international revenues accounted for more than 75% of total revenues in Q3 December 2013.

Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 57% to Rs 1975 crore in Q3 December 2013 over Q3 December 2012. EBITDA margin stood at 46% in Q3 December 2013 compared to 44% in Q3 December 2012.

Meanwhile, Sun Pharmaceutical Industries' revised upwards its consolidated revenue growth guidance to 29% for the year ending 31 March 2014 compared to previous guidance of 25%. The revised guidance takes in to account the performance achieved in nine months ended December 2013, higher base of Q4 March 2013 on consolidation of acquisitions as well the risks associated with increase in competition for some products. Guidance is at constant exchange rate, the company said.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.285, higher than its close of 62.44 on Thursday, 13 February 2014.

Finance Minister P Chidambaram will present the Vote-on-Account or interim budget on 17 February 2014. The objective of a Vote-on-Account is to get Parliament's nod for expenditure to be incurred in the months prior to elections. The next full-fledged budget will be presented by the new government which comes to power after the Lok Sabha polls in April-May 2014.

Inflation based on the wholesale price index (WPI) is also expected to ease in January 2014. WPI inflation is seen easing to 5.9% in January 2014 from 6.16% in December 2013, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil data on inflation based on the wholesale price index (WPI) for January 2014 at 12 noon today, 14 February 2014.

The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Sighting elevated consumer price inflation, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.

Asian stocks rose on Friday as telecommunication and materials companies led gains. Key benchmark indices in China, Hong Kong, South Korea, Indonesia and Taiwan fell by 0.18% to 0.69%. Key benchmark indices in Japan and Singapore fell by 0.02% to 1.59%.

China's inflation stayed subdued in January while factory-gate prices extended the longest drop since the 1990s, in a sign of moderating demand in the world's second-largest economy. The consumer price index rose 2.5% from a year earlier, the National Bureau of Statistics said today in Beijing, the same pace as in December. The producer-price index fell 1.6%. China's economic data are distorted in January and February by the shifting timing of the week-long Lunar New Year holiday, which began on Jan. 31 this year.

Trading in US index futures indicated that the Dow could fall 37 points at the opening bell on Friday, 14 February 2014. US stocks rose on Thursday as earnings and a $45.2 billion takeover of Time Warner Cable Inc. overshadowed an unexpected drop in retail sales.

Receipts at US retailers declined 0.4% in January amid bad weather and uneven progress in the labor market, a report yesterday showed, signaling the economy was off to a slow start this year. The decline was the biggest since June 2012. A Labor Department report showed the number of Americans filing applications for unemployment benefits rose by 8,000 to 339,000 in the week ended Feb. 8.

The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion. The Fed also signaled that it is likely to keep reducing bond purchases in the coming months, citing a pickup in US economic activity and improvement in the US labor market.

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