Market firms up

After trading in a narrow range in morning trade, key benchmark indices firmed up in mid-morning trade. At 11:17 IST, the barometer index, the S&P BSE Sensex, was up 156.48 points or 0.56% at 27,992.98. The Nifty 50 index was up 34.85 points or 0.41% at 8,576.25. The Sensex flirted with the psychologically important 28,000 mark.

The Sensex rose 177 points, or 0.64% at the day's high of 28,013.50 in morning trade. The index rose 81.98 points, or 0.29% at the day's low of 27,918.48 in morning trade. The Nifty rose 43.95 points, or 0.51% at the day's high of 8,585.35 in morning trade. The index rose 17.05 points, or 0.20% at the day's low of 8558.45 in morning trade.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1,534 shares rose and 772 shares fell. A total of 115 shares were unchanged. The BSE Mid-Cap index was currently up 0.35%, underperforming the Sensex. The BSE Small-Cap index was currently up 0.72%, outperforming the Sensex.

In overseas markets, most markets in Asia were trading higher today, 18 July 2016, ahead of a relatively data-light week in the region, while investors had a muted reaction to the risks surrounding a failed military coup in Turkey. In the US market, the Dow Jones Industrial Average edged higher on Friday, 15 July 2016, to post its fourth straight record close, while the S&P 500 broke its win streak as the rally lost strength ahead of the weekend. The Nasdaq Composite Index shed 4.47 points to 5,029.59 but finished the week 1.5% higher.

Most FMCG shares edged higher. Dabur India (up 1.25%), Bajaj Corp (up 0.82%), Colgate Palmolive (India) (up 0.72%), Godrej Consumer Products (up 0.50%), Britannia Industries (up 0.39%), Marico (up 0.32%), GlaxoSmithKline Consumer Healthcare (up 0.28%), Jyothy Laboratories (up 0.10%) and Procter & Gamble Hygiene & Health Care (up 0.07%), edged higher. Nestle India (down 0.07%) and Tata Global Beverages (down 0.34%), edged lower.

FMCG major Hindustan Unilever was down 0.48% ahead of the company's Q1 results today, 18 July 2016.

Pharma stocks were mixed. Aurobindo Pharma (down 0.79%), Cipla (down 0.60%), Wockhardt (down 0.27%), Cadila Healthcare (down 0.14%), Alkem Laboratories (down 0.12%) and GlaxoSmithKline Pharmaceuticals (down 0.05%), edged lower. Piramal Enterprises (up 0.17%), Lupin (up 0.94%), Strides Shasun (up 0.94%), Sun Pharmaceutical Industries (up 1.03%), Divi's Laboratories (up 1.05%) and IPCA Laboratories (up %), edged higher.

Dr Reddy's Laboratories was down 0.11%. The company announced during trading hours today, 18 July 2016, that it has launched Omeprazole and Sodium bicarbonate capsules, 20mg/1100mg and 40mg/1100mg a therapeutic equivalent generic version of Zegerid (omeprazole bicarbonate) capsules in the United States market, having been approved by the US Food & Drug Administration (USFDA). The Zegerid brand and generic had US sales of approximately $306.7 million MAT for the most recent twelve months ending in May 2016 according to MS HeaIth*. Dr. Reddys Omeprazo and sodium bicarbonate capsules 20mg/1100mg and 40mg/1100mg are available in bottle count size of 30. Zegerid is a registered trademark of Santarus, Inc. a wholly-owned subsidiary of Salk Pharmaceuticals, Inc.

Glenmark Pharmaceuticals was down 1.34%. The company announced before market hours today, 18 July 2016. that subsequent to the rating received by the leading credit agencies in the world i.e. S&P and Fitch, the company has decided to tap into the International Bond market and is planning to raise around $200 million by issuing dollar denominated non-convertible unsecured bonds. The net proceeds will be used for repaying the existing debt. These bonds are planned to be listed on the Singapore Stock Exchange in order to establish the company's track record in the globally recognized bond market.

IDFC Bank rose 2.72% after the Reserve Bank of India (RBI) allowed foreign investors to enhance investment in the company from the existing 24% to 46%. RBI on Friday, 15 July 2016 notified that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now enhance investment from existing 24% to 46% of the paid up capital of IDFC Bank under the portfolio investment scheme (PIS). The RBI further notified that the total foreign investment from all sources i.e. foreign institutional investors (FII)/registered foreign portfolios investors (RFPIs)/foreign direct investment (FDI)/non-resident Indians (NRI)/persons of Indian origin (PIO)/American depository receipts (ADR)/Global depository receipts (GDR)/ in IDFC Bank shall not exceed 46%. The RBI has stated that IDFC Bank has passed resolutions at its board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares by FIIs/RFPIs. The purchases could be made through primary market and stock exchanges.

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