A bout of volatility was witnessed as key benchmark indices once again slipped into the red in afternoon trade as European markets edged lower in early trade there ahead of the US Federal Reserve kicking of its two-day policy meeting, at which the central bank could decide to scale back its stimulus program. The barometer index, the S&P BSE Sensex, was down 6.18 points or 0.03%, off 72.99 points from the day's high and up 100.85 points from the day's low. The market breadth, indicating the overall health of the market, was negative.
Dr Reddy's Laboratories rose after the company said it will launch Azacitidine for injection 100 mg/vial, a bioequivalent generic version of VIDAZA (azacitidine for injection), in the United States in the near future.
The market edged lower after oscillating between positive and negative zone in early trade. Volatility continued as key benchmark indices trimmed losses after hitting fresh intraday low in morning trade. The market hovered in the negative terrain in mid-morning trade. The Sensex regained positive terrain and hit fresh intraday high in early afternoon trade. A bout of volatility was witnessed as key benchmark indices once again slipped into the red in afternoon trade as European markets edged lower in early trade there ahead of the US Federal Reserve kicking of its two-day policy meeting, at which the central bank could decide to scale back its stimulus program.
In the foreign exchange market, the rupee trimmed intraday losses against the dollar. The partially convertible rupee was hovering at 63.1150, weaker than its close of 62.83/84 on Monday, 16 September 2013.
The domestic currency has declined against the dollar this year due to fears that India will struggle to fund its current account gap if the US starts to wind down its easy-money policies that have fueled global liquidity in recent years. The rupee has, however, made a strong rebound after hitting record low of 68.85 in intraday deals on 28 August 2013. The recovery in the rupee materialized after new Reserve Bank of India Governor Raghuram Rajan on 4 September 2013 announced plans to bolster the financial industry and stabilize the rupee.
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 13:20 IST, the S&P BSE Sensex was down 6.18 points or 0.03% to 19,736.29. The index rose 66.81 points at the day's high of 19,809.28 in early afternoon trade. The index declined 107.03 points at the day's low of 19,635.44 in morning trade.
The CNX Nifty was down 7.85 points or 0.13% to 5,832.70. The index hit a high of 5,853.95 in intraday trade. The index hit a low of 5,804.90 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,210 shares fell and 895 shares rose. A total of 130 shares were unchanged.
The total turnover on BSE amounted to Rs 909 crore by 13:20 IST.
Among the 30-share Sensex pack, 17 stocks declined and rest of them rose. Wipro (up 4.34%), Sesa Goa (up 3.16%) and Maruti Suzuki India (up 1.61%), gained. ONGC (down 2.41%), NTPC (down 2.24%) and HDFC (down 1.65%) declined.
Pharma stocks saw mixed trend. Cipla (down 0.41%), Sun Pharmaceutical Industries (down 3.16%) and Wockhardt (down 8.98%) declined.
Dr Reddy's Laboratories surged 4.26% after the company announced during market hours today, 17 September 2013, that Azacitidine for injection 100 mg/vial, a bioequivalent generic version of VIDAZA (azacitidine for injection), is approved by the USFDA on 16 September 2013. The launch of product in the US market is planned in the near term, the company said. The VIDAZA brand had US sales of approximately $378.5 million for the twelve months ended July 2013, according to IMS Health data.
Ranbaxy Laboratories gained 3.43% to Rs 329.80. The company said during market hours today, 17 September 2013, that during late hours on Monday, 16 September 2013, the company received communication from the US Food and Drug Administration (USFDA) that the regulator had imposed an import alert on the company's Mohali facility. The USFDA also advised that the Mohali facility will be subject to certain terms of the Consent Decree signed in January 2012. Ranbaxy said it will review the details and will continue to fully cooperate with the USFDA and take all necessary steps to resolve the concerns at the earliest.
The USFDA had conducted inspections at Ranbaxy's Mohali facility in 2012, resulting in certain observations. The company believes that it has made further improvements at its Mohali facility since the last inspection in 2012, and remains committed to adressing all concerns of the USFDA. Ranbaxy is hopeful of an early resolution these concerns, the company said in a statement.
Ranbaxy remains fully committed to upholding the highest standards that patients, prescribers, regulators and all other stakeholders expect from the company. Ranbaxy stays firmly committed to its philosophy of 'Quality and Patients First,' it said in a statement.
Shares of Ranbaxy had tumbled 30.27% in a single trading session to settle at Rs 318.85 on Monday, 16 September 2013, after the USFDA issued an import alert against company's Mohali plant.
Pharma major Lupin rose 0.63% after the company announced after market hours on Monday, 16 September 2013 that it has received final approval for its Zolpidem Tartrate Extended release tablets USP, 6.25 mg and 12.5 mg from the United States Food and Drugs Administration (FDA) to market a generic version of Sanofi Aventis, U.S, LLC's (Sanofi) Ambien CR Extended release tablets, 6.25 mg and 12.5 mg. Lupin's wholly owned US subsidiary Lupin Pharmaceuticals Inc. (LPI) shall commence marketing the product shortly, the company said. Lupin's Zolpidem CR tablets 6.25 mg & 12.5 mg is the AB rated generic equivalent of Sanofi's Ambien CR Extended? release tablets, 6.25 mg and 12.5 mg and is indicated for the treatment of insomnia characterized by difficulties with sleep onset and/or sleep maintenance. Sanofi's Ambien CR Extended release tablets had annual US sales of approximately $366 million (IMS MAT Mar 2013).
Shriram City Union Finance (up 3.6%), Oberoi Realty (up 3.04%), Bajaj Finance (up 2.72%), UltraTech Cement (up 2.64%) and Nestle India (up 2.49%) were among the top gainers from the BSE's 'A' group.
At its upcoming mid-quarter monetary policy review on Friday, 20 September 2013, the Reserve Bank of India will have to decide whether to give in to industry demands and lower interest rates in order to boost slowing economic growth, or leave interest rates unchanged for the third straight policy review as it guards against risks of a fresh rise in inflationary pressures.
European stock markets pulled back from multi-year highs on Tuesday, 17 September 2013, ahead of the US Federal Reserve kicking of its two-day policy meeting, at which the central bank could decide to scale back its stimulus program. Key benchmark indices in UK, France and Germany were down by 0.17% to 0.27%.
Asian stocks fell on Tuesday, 17 September 2013, as the Federal Reserve begins a two-day policy meeting at which it is forecast to reduce the pace of its US bond buying. Key benchmark indices in China, Japan, Taiwan, Hong Kong, Indonesia and South Korea fell by 0.07% to 2.05%. Singapore's Straits Times was unchanged.
Trading in US index futures indicated that the Dow could slide 12 points at the opening bell on Tuesday, 17 September 2013. Most US stocks rose on Monday, 16 September 2013, after former US Treasury secretary Larry Summers removed himself from consideration to run the Federal Reserve. Summers was seen as relatively hawkish.
Investors across the globe are eyeing the two-day policy meeting of the Federal Open Market Committee (FOMC), considered by many to provide an indication on the timing and size of the Fed's cutbacks in its bond-purchase program. The FOMC's two-day policy meeting on interest rates in the United States begins today, 17 September 2013. The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years. Investors are also eyeing Fed's forward guidance on policy.
UN chemical investigators on Monday confirmed the use of sarin nerve agent in an August 21 poison gas attack outside the Syrian capital in a long-awaited report that the United States, Britain and France said proved government forces were responsible. Syria and Russia have blamed the August 21 attack on the rebels. The rebels, the United States and other Western powers blame forces loyal to Assad for the Ghouta attack. The UN confirmation of sarin gas use on August 21 comes as France, Britain and the United States agreed in Paris to seek a strong and robust UN resolution that sets binding deadlines on removal of chemical weapons. Those talks followed a weekend deal on Syria's chemical weapons reached by the United States and Russia that could avert US military action.
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