Sensex scales fresh record high

A divergent trend was witnessed between the two key benchmark indices in afternoon trade. At 13:18 IST, the barometer index, the S&P BSE Sensex rose 78.46 points or 0.24% at 33,225.59. The Nifty 50 index lost 1.8 points or 0.02% at 10,342. The Sensex hit fresh record high in afternoon trade. The Nifty had hit a record high in early trade.

Among secondary indices, the S&P BSE Mid-Cap index rose 0.38%. The S&P BSE Small-Cap index gained 0.54%. Both the indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,430 shares rose and 1,129 shares declined. A total of 152 shares were unchanged.

Pharma stocks gained. Sun Pharmaceutical Industries (up 3.54%), Cadila Healthcare (up 2.45%), Glenmark Pharmaceuticals (up 2.26%), Aurobindo Pharma (up 2.08%), Cipla (up 1.97%), Dr Reddy's Laboratories (up 1.72%) and Lupin (up 1.24%) advanced. Alkem Laboratories (down 0.24%) declined.

Biocon lost 2.68% at Rs 355.80 after consolidated net profit fell 53.1% to Rs 68.80 crore on 2.41% increase in net sales to Rs 968.60 crore in Q2 September 2017 over Q2 September 2016. The result was announced after market hours yesterday, 26 October 2017.

Commenting on the quarterly performance and highlights, chairperson and managing director Kiran Mazumdar-Shaw stated that while the company is pleased with the growth recovery of its research services (Syngene) and branded formulations business segments in the July - September quarter, its overall earnings performance was muted on account of several specific factors.

In particular, plant modifications undertaken to comply with regulatory requirements led to production disruptions. Additionally, the company experienced regulatory and tender delays in some emerging markets for its biosimilars business. Malaysia facility costs and pricing pressures in APIs business continue to weigh on its P&L. The company expects these headwinds to ease by the end of this fiscal.

IT stocks were mixed. Infosys (up 0.35%), Persistent Systems (up 0.39%) and Oracle Financial Services Software (up 0.16%) edged higher. Wipro (down 2.04%), HCL Technologies (down 0.62%) and Tech Mahindra (down 0.12%) declined.

TCS rose 1.16% at Rs 2,572.40 after the company and ACORD, the global data standards-setting body for the insurance industry, announced an exclusive initiative to modernize the insurance industry by providing enhancements to ACORD's Reference Architecture. TCS will work with ACORD to develop defined data models and standards to allow insurers to address digital transformation, and more easily embrace emerging technologies. The announcement was made after market hours yesterday, 26 October 2017.

MphasiS rose 5% to Rs 705.75 after consolidated net profit rose 5.61% to Rs 197.69 crore on 4.47% increase in net sales to Rs 1604.69 crore in Q2 September 2017 over Q1 June 2017. The result was announced after market hours yesterday, 26 October 2017.

Overseas, European stocks edged higher in early trade, supported by upbeat earnings from US tech giants and the prospect of continuing stimulus in Europe. European Central Bank (ECB) President Mario Draghi yesterday, 26 October 2017, outlined plans to halve its monthly bond purchases to 30 billion euros ($35 billion) from 60 billion euros starting in January, but he also indicated that zero percent interest rates could remain at current levels until well past whenever it finally decides to end its quantitative easing measures.

Asian stocks rose following gains in US equities as earnings and congressional action on tax reform boosted confidence in the growth outlook. The US House passed a budget resolution seen as advancing the prospects for tax reform.

Among economic data, profits for China's industrial powerhouses surged the most in nearly six years in September. Industrial profits in September rose 27.7% from a year earlier to 662.18 billion yuan ($99.46 billion), accelerating from a 24% jump in August, the National Bureau of Statistics (NBS) said.

US stocks ended mostly higher yesterday, 26 October 2017, as a fusillade of better-than-expected corporate quarterly results helped to reinvigorate Wall Street buying appetite.

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