Key benchmark indices edged lower in early trade on weak Asian stocks. The barometer index, the S&P BSE Sensex, was down 155.42 points or 0.79%, off about 80 points from the day's high and up close to 15 points from the day's low. The market breadth, indicating the overall health of the market, was negative. Capital goods pivotals dropped. Lupin rose after the company received final approval from the United States Food and Drugs Administration (USFDA) for its Vyfemla Tablets. Asian stocks fell on Monday on concern the US government is headed for a shutdown amid a budget stalemate.
The market sentiment was also affected adversely by data showing that foreign funds remained net sellers of Indian stocks on Friday, 27 September 2013. Foreign institutional investors (FIIs) sold shares worth a net Rs 244.95 crore on Friday, 27 September 2013, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee weakened against the dollar. The partially convertible rupee was hovering at 62.89, compared with its close of 62.4975 on Friday, 27 September 2013. Rupee depreciation fuels inflation, increases import bill and current account deficit. It also increases the government's spending on fuel subsidies, potentially widening the fiscal deficit.
At 9:30 IST, the S&P BSE Sensex was down 155.42 points or 0.79% to 19,571.85. The index declined 170.95 points at the day's low of 19,556.32 in early trade. The index fell 75.96 points at the day's high of 19,651.31 in opening trade.
The CNX Nifty was down 49.65 points or 0.85% to 5,783.55. The index hit a low of 5,779.40 in intraday trade. The index hit a high of 5,810.20 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 415 shares fell and 329 shares rose. A total of 30 shares were unchanged.
Among the 30-share Sensex pack, 25 stocks fell and rest of them rose. Tata Steel (down 2.71%), Bharti Airtel (down 2.21%) and ICICI Bank (down 1.07%), declined.
Lupin rose 0.43% after the company after market hours on Friday, 27 September 2013 announced that it has received final approval for its Vyfemla Tablets (Norethindrone and Ethinyl Estradiol Tablets USP, 0.4mg/0.035 mg) from the United States Food and Drugs Administration (USFDA) to market a generic version of Warner Chilcott Company, LLC's Ovcon 35 Tablets (Norethindrone and Ethinyl Estradiol Tablets USP, 0.4mg/0.035 mg). Lupin's US subsidiary Lupin Pharmaceuticals Inc. shall commence marketing the product shortly.
Lupin's Vyfemla Tablets (Norethindrone and Ethinyl Estradiol Tablets USP, 0.4 mg/0.035 mg) is the AB rated generic equivalent of Warner Chilcott's Ovcon 35 Tablets and is indicated for the prevention of pregnancy in women who elect to use this product as a method of contraception.
As per IMS MAT March 2013 data, Warner Chilcott Company, LLC.'s Ovcon 35 Tablets had annual sales of approximately $22.3 million in the US.
Ranbaxy Laboratories rose 0.01%. The company after market hours on Friday, 27 September 2013 said that ICRA has assigned the rating of [ICRA]A1+ (pronounced as A One Plus) to the company's commercial paper (CP)/short term debt (STD) programme for an enhanced amount of Rs 800 crore. Earlier CP/STD programme of the company for Rs 1200 crore was also assigned the same rating i.e. [ICRA]A1+.
Instruments with [ICRA]A1+ rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such instruments carry lowest credit risk, Ranbaxy Lab said.
State Bank of India (SBI) declined 1.8%. The bank announced after market hours on Friday, 27 September 2013 that it has repurchased a principal amount of $147 million of $1 billion 3.25% bonds due 2018 (the 2018 Bonds). The 2018 Bonds were issued by SBI on 18 April 2013 and are listed on the Singapore Exchange Securities Trading. The repurchase of the Bond took place between 26 August 2013 and 26 September 2013. The bank is in the process of cancelling the repurchased 2018 Bonds and the aggregate outstanding principal amount of the 2018 Bonds following such cancellation will be $853 million, SBI said in a statement.
Capital goods pivotals dropped. Bhel (down 3.75%) and L&T (down 0.96%), declined.
The government said on Friday that it will allow unlisted Indian companies to list directly and raise capital overseas to retire debt or for acquisitions or operational needs abroad. The move comes at a time when the government is battling to trim the current account deficit and attract dollar inflows.
A finance ministry statement said unlisted Indian companies would be allowed for two years, on a pilot basis, to list and raise capital abroad without the requirement of prior or subsequent listing in the country. "At present, unlisted companies that are incorporated in India are not allowed to directly list in overseas markets without prior or simultaneous listing in Indian markets," the statement said. After the initial two year period, the impact of this arrangement will be reviewed. While raising resources abroad, the listing company shall be fully compliant with the FDI policy in force, the finance ministry said. In case funds raised are not utilized abroad such companies would be asked to remit the money back to India within 15 days and these funds would be parked only in AD category banks recognized by RBI.
Asian stocks fell on Monday on concern the US government is headed for a shutdown amid a budget stalemate. Key benchmark indices in Japan, Hong Kong, Taiwan, Indonesia, Singapore and South Korea fell 0.51% to 1.54%. China's Shanghai Composite rose 0.61%
A Chinese manufacturing gauge unexpectedly rose less than a preliminary estimate in September, highlighting challenges for Premier Li Keqiang in sustaining a rebound from a two-quarter economic slowdown. The Purchasing Managers' Index from HSBC Holdings Plc and Markit Economics rose to 50.2 in September from 50.1 in August. The final number was less than last week's 51.2 preliminary reading. A similar gauge from the government is due tomorrow, 1 October 2013.
China opened a new free trade zone in Shanghai on Sunday in what has been hailed as potentially the boldest reform in decades, and gave fresh details on plans to liberalise regulations governing finance, investment and trade in the area. The Shanghai FTZ, which covers an area of nearly 29 sq km on the eastern outskirts of the commercial hub, was approved by China's State Council, or cabinet, in July. Some Chinese and foreign firms are already setting up subsidiaries in the zone. A total of 25 companies so far have been approved to start operations in a variety of sectors, alongside 11 financial institutions, most of which are domestic banks but including the mainland subsidiaries of Citibank and DBS.
US stocks Friday closed a downcast week on a sour note, declining amid relentless partisan squabbling over a budget bill to avert a partial US government shutdown.
The Democratic-led Senate Friday approved a temporary budget bill to fund government operations at the start of the 2014 fiscal year Tuesday. But the measure, which goes to the House of Representatives, does not defund President Barack Obama's health-care law, a prime objective of House Republicans. With no compromise in sight, Obama told a White House news conference that Congress must pass a bill to fund the government and failure to do so would destabilise the world economy.The 2014 fiscal year in the United States starts on Tuesday, 1 October 2013, and politicians remain at loggerheads over passing a budget.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.
Powered by Capital Market - Live News
