Market turns range bound

A rangebound movement was witnessed as key benchmark indices hovered in green in early afternoon trade. At 12:18 IST, the barometer index, the S&P BSE Sensex, was up 18.80 points or 0.07% at 25,320.70. The Nifty 50 index was currently up 12.55 points or 0.16% at 7,762.25. The market breadth indicating the overall health of the market was positive. On BSE, 1,160 shares rose and 1,120 shares fell. A total of 151 shares were unchanged. The BSE Mid-Cap index was currently up 0.3%. The BSE Small-Cap index was currently up 0.23%. Both these indices outperformed the Sensex.

In the overseas stock markets, most Asia stocks edged higher after US stocks moved higher during the previous trading session on Friday, 20 May 2016. US stocks edged higher on Friday, 20 May 2016, after strong housing data for April 2016. Existing-home sales rose 1.7% in April 2016 to a seasonally adjusted annual rate of 5.45 million, the National Association of Realtors said.

Shares of pharmaceutical companies edged higher. Alkem Laboratories (up 1.72%), Piramal Enterprises (up 1.19%), Strides Shasun (up 0.72%), Aurobindo Pharma (up 0.59%), Glenmark Pharmaceuticals (up 0.50%), Lupin (up 0.44%), GlaxoSmithKline Pharmaceuticals (up 0.40%), Cadila Healthcare (up 0.34%), Divi's Laboratories (up 0.24%), Dr Reddy's Laboratories (up 0.11%) and IPCA Laboratories (up 0.02%), edged higher. Wockhardt (down 0.15%), Cipla (down 1.17%) and Sun Pharmaceutical Industries (down 1.28%), edged lower.

Most cement shares edged higher. Ambuja Cements (up 1.84%) and ACC (up 1.49%), edged higher. UltraTech Cement was down 0.18%.

Grasim Industries was up 0.24%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Steel Strips Wheels rose 1.55% after the company said it has secured an export order valued at about $225,000 for Canadian Winter Wheels market. The order will cover supplies of about 17,000 wheels. The wheels will be supplied from Steel Strips Wheels' (SSWL) Dappar and Chennai plants in India with the first supplies planned by end of mid of next month, SSWL said in a statement. SSWL plans to strengthen its base in the high potential Canadian after-market and expects to see increased business in this geography in the coming years. The announcement was made during market hours today, 23 May 2016.

Suven Life Sciences gained 1.93% after the company announced that it has secured four product patents in Australia, Eurasia, Israel and USA for new chemical entities in CNS therapy for cognitive disorders. The patents in these countries are valid until 2032, 2030, 2031 and 2032 respectively. These granted patents are exclusive intellectual property of Suven and are achieved through the internal discovery research efforts. Products out of these inventions may be out-licensed at various phases of clinical development like at Phase-I or Phase-II. The announcement was made during market hours today, 23 May 2016.

Meanwhile, Reserve Bank of India Governor Dr. Raghuram Rajan said in a speech on Saturday, 21 May 2016, that with a view to limit external vulnerabilities arising from the easy and unconventional monetary policy in industrial countries, India is taking measures to control capital inflows, intervening in the foreign exchange market as a macro prudential measure to reduce volatility and maintaining sufficient foreign exchange reserves to be able to withstand a sudden stop in capital inflows. Rajan said that good economic policy is the first line of defence - including the focus on controlling fiscal deficit, reforms like the Bankruptcy Code and Aadhaar and the steady fight against inflation.

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