Key indices bounce back in volatile trade

High volatility was witnessed as key benchmark indices regained positive zone in mid-afternoon trade. At 14:17 IST, the barometer index, the S&P BSE Sensex, was up 58.13 points or 0.23% at 25,881.12. The 50-unit CNX Nifty was up 26.45 points or 0.34% at 7,872.40. Key indices witnessed high volatility as traders rolled over positions in the futures & options (F&O) segment from the September 2015 series to October 2015 series ahead of the expiry of the near month September 2015 contracts. The Sensex rose 126.91 points at the day's high of 25,949.90 and the Nifty rose 48.55 points at the day's high of 7,894.50 in mid-afternoon trade. Earlier the Sensex fell 152.03 points at the day's low of 25,670.96 in early trade. The Nifty fell 41.85 points at the day's low of 7,804.10 in early trade. The near month September 2015 derivatives contracts are set to expire today, 24 September 2015.

The market breadth indicating the overall health of the market was positive. On BSE, 1,452 shares rose and 1,075 shares fell. A total of 127 shares were unchanged. The BSE Mid-Cap index was up 0.32%. The BSE Small-Cap index was up 0.60%. Both these indices outperformed the Sensex.

Cement shares edged lower. Shree Cement (down 2.12%), Ambuja Cements (down 0.81%), ACC (down 0.46%) and UltraTech Cement (down 0.01%), edged lower.

Grasim Industries was down 0.21%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Most capital goods shares were trading higher. Praj Industries (up 4.04%), AIA Engineering (up 2.53%), Bharat Electronics (up 1.23%), BEML (up 1%), SKF India (up 0.89%), Siemens (up 0.88%), Suzlon Energy (up 0.49%), ALSTOM India (up 0.34%), Pipavav Defence and Offshore Engineering Company (up 0.34%), Lakshmi Machine Works (up 0.31%), Alstom T&D India (up 0.07%) and ABB India (up 0.05%), edged higher. Jindal Saw (down 0.16%), Punj Lloyd (down 0.21%), Bharat Heavy Electricals (down 0.98%), Thermax (down 1.07%), Havells India (down 1.15%), L&T (down 1.58%) and Crompton Greaves (down 2.24%), edged lower.

Kotak Mahindra Bank was down 1.30% at Rs 650.50. The bank announced during trading hours today, 24 September 2015, that its board has approved a sponsored depository receipt (DR) issuance programme against underlying existing equity shares of the bank. The bank will issue up to 5 million DRs, with conversion ratio of 1 equity share for each DR.

Lupin rose 2.93% to Rs 1,977.60 after reports the company increased price of its generic diabetes drug Fortamet in the US market. Lupin has reportedly increased price of its generic diabetes drug Fortamet by three times for 500 mg and 1000 mg variants in the US market. Despite the price hike, Lupin's drug is still 15% cheaper than its innovator, report said. Fortamet has two generic players in the US market viz. Lupin and Mylan. Lupin has 60% market share of the drug in value terms, according to reports. Mylan, which got the approval for the drug in 2013, has not yet launched its generic version. Fortamet's current market size is estimated at $170 million in the United States, report added.

After the price hike, a foreign brokerage has reportedly upgraded the Lupin stock to outperform.

In overseas stock markets, European stocks edged higher in choppy trade after Ifo think-tank said its business climate index, which measures mood among German business managers picked up further in September. In Asia, the Nikkei 225 Average dropped 2.76% as trading on the Japanese bourses resumed after a three-day holiday. US stocks fell yesterday, 23 September 2015, dragged down by economic reports portraying US factory growth as tepid and China in its worst manufacturing contraction since the global financial crisis.

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