Market recovers after initial decline

Key benchmark indices recovered after an initial slide. At 9:21 IST, the barometer index, the S&P BSE Sensex, was down 14.49 points or 0.06% at 25,504.73. The Nifty 50 index was off 1.30 points or 0.02% at 7,761.95. The broad market depicted strength. There were more than two gainers against every loser on BSE. 813 shares rose and 307 shares fell. A total of 62 shares were unchanged. The BSE Mid-Cap index was currently up 0.37%. The BSE Small-Cap index was currently up 0.27%. Both these indices outperformed the Sensex.

In overseas stock markets, Asian stocks were trading mixed. US stocks fell sharply during the previous trading session on Friday, 18 December 2015, on continued weakness in crude oil prices with the simultaneous expiration of individual stock and index futures and options known as a quadruple witching generating heavy trading volume.

Adani Ports and Special Economic Zone (APSEZ) rose 0.46%. Asian Paints rose 0.08%. Vedanta rose 0.65%. Hindalco Industries gained 1.38%. APSEZ and Asian Paints replaced Vedanta and Hindalco Industries in the 30-share S&P BSE Sensex with effect from today, 21 December 2015.

Pharma stocks gained. Cadila Healthcare (up 1.01%), Cipla (up 0.27%), Dr Reddy's Laboratories (up 0.21%), Glenmark Pharmaceuticals (up 0.7%), Lupin (up 0.53%), Aurobindo Pharma (up 0.24%) and Wockhardt (up 0.52%) gained.

Sun Pharmaceutical Industries (Sun Pharma) dropped 6.08% after the company announced on Saturday, 19 December 2015, that it has received a warning letter from the United States Food and Drug Administration (USFDA) as a result of the September 2014 inspection for its facility located at Halol in Gujarat. Sun Pharma said it has responded to the USFDA inspection observations with a robust remediation process that is still on-going, with significant investments in automation and training to enhance its quality systems. Sun Pharma has been working with external consultants to ensure its remediation activities have been completed in an appropriate manner, the company said in a statement. Post September 2014 inspection, the USFDA has withheld future product approvals from the Halol facility. This situation may continue until all issues are resolved, Sun Pharma said. The company expects to request a re-inspection by USFDA upon completion of its remediation commitments. Sun Pharma and the Halol facility will continue to supply important drug products to meet its obligations to its customers and the patients who use its drugs in the United States and around the world, the company said. Sun Pharma will respond to this warning letter with a detailed plan within the stipulated time frame, the company said in a statement.

Eicher Motors rose 0.71% after the company announced after market hours on Friday, 18 December 2015, that the company is back to normalcy at its Royal Enfield production facilities in Thiruvottiyur and Oragadam. Both these facilities are now running at 100% of their installed capacity. It may be recalled that due to recent heavy rains and flooding in Chennai, both of the company's Royal Enfield production facilities in Thiruvottiyur and Oragadam were shut from 1 December to 6 December 2015. Later, the company had on 8 December 2015 announced resumption of production at only 50% of installed capacity at these two units on 7 December 2015.

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