Mid-Cap, Small-Cap indices outshine Sensex's gains

Volatility continued as key benchmark indices traded off initial high. At 11:19 IST, the barometer index, the S&P BSE Sensex, was up 80.62 points or 0.3% at 26,866.17. The gains for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty index. The Nifty was up 16.15 points or 0.2% at 8,135.45. The Sensex failed to retain the psychological 27,000 mark after surpassing that mark in early trade.

Meanwhile, the outcome of a monthly survey from Markit Economics showed that the growth in India's services sector activity eased last month. The Nikkei India Business Activity index dropped to 51.3 in September 2015 from 51.8 in August 2015. The slowdown in growth in the services sector comes close on the heels of another data showing slowdown in growth momentum in the manufacturing sector in September 2015.

Earlier, the Sensex jumped 224.72 points or 0.83% at the day's high of 27,010.27 in early trade, a 6-1/2-week high. The Nifty also hit 6-1/2-week high when it jumped 61.65 points or 0.75% at the day's high of 8,180.95 in early trade.

In overseas stock markets, Asian stocks rose on prospects of a delay in the US Federal Reserve's plan to raise interest rates and signs of some stability in oil and commodity markets. US stocks jumped yesterday, 5 October 2015, with the S&P 500 index rising for the fifth day in a row, as rising oil prices boosted energy stocks and investors bet the Federal Reserve would not raise interest rates in calendar year 2015.

Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,382 shares rose and 786 shares declined. A total of 94 shares were unchanged. The BSE Mid-Cap index was up 0.47%. The BSE Small-Cap index was up 0.77%. Both of these indices outperformed the Sensex.

IT stocks were mixed. HCL Technologies (up 0.02%), Wipro (up 0.98%), Oracle Financial Services Software (up 0.65%) and MphasiS (up 0.59%) edged higher. TCS (down 0.24%) and Infosys (down 0.94%) declined.

Tech Mahindra rose 0.24% after the company announced bagging a contract to provide digital solutions to Bombardier. As per the agreement with Bombardier Commercial Aircraft, Tech Mahindra will develop aircraft ground support system (AGSS) for Bombardier's Aircraft Health Management System (AHMS) for the C Series family of aircraft. The AGSS will facilitate real-time and post-flight recorded data management, fault notification and diagnostic reporting, Tech Mahindra and Bombardier said in a joint press release issued after trading hours in India yesterday, 5 October 2015.

Pharma stocks gained. Aurobindo Pharma (up 1.42%), Cipla (up 2.36%), Lupin (up 1.19%), Wockhardt (up 2.89%), Dr Reddy's Laboratories (up 2.46%), Divi's Laboratories (up 1.24%), Glenmark Pharmaceuticals (up 2.01%) and Cadila Healthcare (up 0.95%) gained.

Sun Pharmaceutical Industries rose 1.84% after the company announced that its wholly-owned subsidiary - Ranbaxy Pharmaceuticals Inc. (Ranbaxy), along with its partners, Cipher Pharmaceuticals Inc. (Cipher) and Galephar Pharmaceutical Research, Inc. (Galephar) have entered into a settlement agreement with Actavis Group (Actavis) that dismisses the patent litigation suit relating to Actavis' abbreviated new drug application (ANDA) for a generic version of Absorica (isotretinoin capsules). The company made the announcement after market hours yesterday, 5 October 2015. As part of the settlement agreement, Ranbaxy, Cipher, and Galephar have entered into a non-exclusive license agreement with Actavis under which Actavis may begin selling its generic version of Absorica in the US on 27 December 2020 (about nine months prior to the expiration of the patents in September 2021) or earlier under certain circumstances. The settlement agreement is subject to review by the US Federal Trade Commission and the US Department of Justice.

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