Key indices trade near day's high

A rangebound movement was witnessed as key benchmark indices hovered near the day's high in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex, was up 195.81 points or 0.74% at 26,562.49. The Nifty 50 index was currently up 65.70 points or 0.81% at 8,135.35. The Sensex hit its highest level in more than 29 weeks and the Nifty hit a 30-week high. In overseas stock markets, Asian stocks edged higher after better-than-expected US economic reports overnight. The US economy is the world's biggest economy.

The Sensex rose 219.08 points, or 0.83% at the day's high of 26,585.76 in mid-morning trade, its highest level since 4 November 2015. The index rose 38.60 points, or 0.15% at the day's low of 26,405.28 in early trade. The Nifty rose 71.65 points, or 0.89% at the day's high of 8,141.30 in mid-morning trade, its highest level since 30 October 2015. The index rose 7.40 points, or 0.09% at the day's low of 8,077.05 in early trade.

The market breadth indicating the overall health of the market was strong. On BSE, 1,383 shares rose and 737 shares fell. A total of 146 shares were unchanged. The BSE Mid-Cap index was currently up 1.4%. The BSE Small-Cap index was currently up 0.81%. Both these indices outperformed the Sensex.

In overseas stock markets, Asian stocks edged higher after better-than-expected US economic reports overnight. The US economy is the world's biggest economy. US equities took a breather yesterday, 26 May 2016, following their steepest two-day advance since March as investors parsed a slew of economic reports. The latest data showed US durable goods orders, pending home sales and initial jobless claims coming in strong, while capital goods orders and the Kansas City Fed manufacturing survey were weak.

Maruti Suzuki India was up 0.13% at Rs 4.122.65. The company announced during trading hours today, 27 May 2016, that it will recall 75,419 Baleno cars and 1,961 DZire cars (only AGS variant). The company will proactively and voluntarily recall 75,419 Baleno cars (petrol and diesel) manufactured between 3 August 2015 and 17 May 2016 to upgrade the airbag controller software. Of these, 15,995 Baleno cars (only diesel), manufactured between 3 August 2015 and 22 March 2016 will also be attended to for inspection and replacement of a faulty fuel filter. The Baleno cars covered in the recall include 17,231 units of exports.

In addition, 1,961 DZire diesel cars (only AGS variant) will be attended to for inspection and replacement of a faulty fuel filter. Starting 31 May 2016, the owners of the vehicles covered will be contacted by Maruti Suzuki dealers. The software upgrade and the replacement of faulty fuel filter, will be done free of cost, the company said.

Pharmaceutical stocks edged higher. Wockhardt (up 4.25%), Aurobindo Pharma (up 3.32%), Piramal Enterprises (up 3.05%), Divi's Laboratories (up 2.76%), Strides Shasun (up 2.53%), Cadila Healthcare (up 1.50%), Glenmark Pharmaceuticals (up 1.43%), Cipla (up 1.41%), Dr Reddy's Laboratories (up 0.41%) and IPCA Laboratories (up 0.19%), edged higher. Alkem Laboratories (down 0.12%) and GlaxoSmithKline Pharmaceuticals (down 0.88%), edged lower.

Lupin was up 2.92% at Rs 1,513 after the company announced during trading hours today, 27 May 2016, that it has received Establishment Inspection Reports (EIR) for its Mandideep and Aurangabad facilities wherein the U S Food and Drug Administration (USFDA) has concluded that the inspections stand closed.The USFDA had conducted audits at Lupin's Mandideep facility from 8 to 19 February 2016 and its Aurangabad facility from 11 to 15 January 2016.Lupin said that the company had taken appropriate steps to address the observations it had received from these audits. Having received the EIRs from the USFDA about the closure of these inspections, all observations stand addressed and both these facilities are cGMP compliant.

Sun Pharmaceutical Industries was up 4.25% at Rs 813.20 after the company's US subsidiary Taro Pharmaceutical Industries posted strong financial performance for the year ended 31 March 2016. Taro Pharmaceutical Industries' consolidated net profit rose 11.69% to $540.9 million on 10.2% growth in net sales to $950.80 million in the year ended 31 March 2016 over the year ended 31 March 2015. The result was announced yesterday, 26 May 2016. Taro reportedly contributes around 32% of the US turnover of Sun Pharma.

Most power generation stocks edged higher. Reliance Power (up 6.69%), Reliance Infrastructure (up 6.66%), JSW Energy (up 3.36%), Jaiprakash Power Ventures (up 2.23%), GMR Infrastructure (up 1.93%), Tata Power (up 0.68%), NHPC (up 0.66%) and CESC (up 0.26%), edged higher. NTPC (down 0.46%), Torrent Power (down 0.77%) and Adani Power (down 2.74%) edged lower.

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