Sensex regains 27,000 level

A sudden rebound took key benchmark indices into positive zone from negative zone in mid-afternoon trade. At 14:18 IST, the barometer index, the S&P BSE Sensex, was up 34.91 points or 0.13% at 27,045.05. The 50-unit CNX Nifty was up 17.60 points or 0.22% at 8,197.10. The Sensex reclaimed the psychological 27,000 level after falling below that level in intraday trade. The market breadth indicating the overall health of the market was negative. On BSE, 1,322 shares fell and 1,269 shares rose. A total of 164 shares were unchanged. The BSE Mid-Cap index was up 0.27%. The BSE Small-Cap index was up 0.18%. Both these indices outperformed the Sensex.

Pharma stocks edged higher on a weak rupee. Ipca Laboratories (up 2.33%), Cipla (up 0.63%), GlaxoSmithkline Pharmaceuticals (up 0.57%), Wockhardt (up 0.88%), Strides Arcolab (up 1.08%), Glenmark Pharmaceuticals (up 0.11%) and Dr Reddy's Laboratories (up 0.12%) edged higher. Sun Pharmaceutical Industries (down 0.6%), Divi's Laboratories (down 0.42%) and Lupin (down 2.44%) edged lower.

A weak rupee will boost sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports.

In the foreign exchange market, the partially convertible rupee was currently hovering at 64.915, compared with its close of 64.825 during the previous trading session.

Realty stocks declined. DLF (down 4.27%), Unitech (down 1.79%), Housing Development & Infrastructure (down 0.58%), D B Realty (down 0.68%), Oberoi Realty (down 0.31%), Sobha (down 0.78%) and Prestige Estates Projects (down 1.4%) edged lower. Indiabulls Real Estate (up 0.15%) and Godrej Properties (up 0.8%) edged higher.

Nestle India surged 5.58% to Rs 6,550.20 after the company announced that it will soon commence manufacture of Maggi noodles and that the company intends to reintroduce its Maggi noodles in the market at the earliest. The company made the statement after test results from all the three laboratories mandated by the Bombay High Court to test Maggi noodles samples showed that the noodles are safe for consumption with lead content within permissible level. Nestle India will recommence selling Maggi noodles after the newly manufactured products are cleared by the designated three laboratories.

Jay Bharat Maruti fell 4.03% at Rs 138 after net profit fell 18.9% to Rs 9.94 crore on 3.2% decline in net sales to Rs 312.28 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours yesterday, 15 October 2015.

Cyient slumped 11.02% at Rs 556.70 on reports that the US-based private equity firm Carlyle is evaluating plans to sell its entire stake in the company, which it holds through First Carlyle Ventures Mauritius. Talks are in the preliminary stage and the exit may either be through a block deal or secondary market sale, reports added. First Carlyle Ventures Mauritius held 1.10 crore shares, or 9.88% stake, in Cyient as on 30 June 2015. Carlyle had picked up the stake in Cyient on 11 July 2012 for around Rs 210 crore.

Meanwhile, data released by the government after market hours yesterday, 15 October 2015, showed that India's merchandise exports declined for tenth straight month in September 2015. Merchandise exports dropped 24.3% to $21.85 billion in September 2015 over September 2014. Imports dipped 25.4% to $32.32 billion. The trade deficit narrowed 27.6% to $10.5 billion in September 2015 from $14.47 billion in September 2014.

In overseas stock markets, European stocks edged higher after a lackluster reading on US consumer prices strengthened the view that the US Federal Reserve may continue to hold off on raising interest rates. In Asia, Chinese and Japan stocks edged higher on stimulus hopes in those countries in the wake of recent weak economic data. US stocks surged yesterday, 15 October 2015, as falling US consumer prices added to the batch of disappointing economic data that reduces the odds of an interest-rate increase this year from the Federal Reserve.

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