Key benchmark indices were trading sharply higher in early trade on strong Asian stocks. At 9:25 IST, the barometer index, the S&P BSE Sensex was up 396.77 points or 1.46% at 27,523.67. The Nifty 50 index was currently up 114.40 points or 1.37% at 8,437.60
In overseas stock markets, Japanese stocks led gains in Asian stocks as investors saw solid poll results for Japan's upper house as signaling new rounds of economic and political reforms by the coalition government led by Prime Minister Shinzo Abe. The Nikkei 225 was up 3.55%. In upper house elections on Sunday, 10 July 2016, Shinzo Abe's ruling coalition won in a landslide, making it far easier to push through his economic agenda, dubbed Abenomics. US stocks rose on Friday, 8 July 2016 after robust job gains last months bolstered investor sentiment on the strength of the economy. In economic data, US employers in June added a seasonally adjusted 287,000 jobs, the strongest month of hiring since last October, according to the Labor Department report. That was a sharp rebound from May, when hiring sagged to 11,000, the weakest reading since the economy stopped shedding jobs in 2010. Another data showed that the unemployment rate, calculated from a separate survey of US households, rose to 4.9% in June from 4.7% in May, partly retracing its drop from 5% in April.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,346 shares rose and 221 shares declined. A total of 48 shares were unchanged. The BSE Mid-Cap index was currently up 1.04%. The BSE Small-Cap index was currently up 1.05%. Both these indices underperformed the Sensex.
Sun Pharmaceutical Industries rose 0.76% after the company said that as part of business strategy to build a meaningful & differentiating presence in Global Oncology Therapy market, the company and its subsidiaries or associate companies) announced the roll-out of Gemcitabine lnfuSMART in Europe. The announcement was made before market hours today, 11 July 2016. lnfuSMART is a technology in which oncology products are developed in a Ready-To-Administer (RTA) bag. Until now, compounding of oncology products was done at compounding centres or compounded in hospital pharmacies, an extra step before the medicine can be administered to patients. With the roll-out of Gemcitabine lnfuSMART, Sun Pharmaceutical Industries becomes world's first pharmaceutical company to manufacture and launch a licensed RTA oncology product. This innovatively differentiated product will have a shelf life of two years. Over the next few months, Sun Pharmaceutical Industries will launch Gemcitabine lnfuSMART across Netherlands, UK, Spain, Germany, Italy & France.
Sun Pharmaceutical Industries received regulatory approval to produce Gemcitabine lnfuSMART in eight key SKUs. The lnfuSMART concept involves dose banding practice whereby, through agreement between prescribers and pharmacists, standardized doses of intravenous cytotoxic drugs are used for ranges (or bands) of doses calculated for individual patients. More lnfuSMART oncology products are currently in Sun Pharmaceutical Industries' pipeline to be rolled out in the future, the company said.
Shares of engineering and construction major L&T advanced 2.39% as the company's subsidiary and IT outsourcing services provider Larsen & Toubro Infotech known as L&T Infotech's initial public offer (IPO) commences today, 11 July 2016. L&T Infotech's promoter L&T is selling a part of its stake through the IPO of L&T Infotech. L&T Infotech will not get any funds from the IPO and the entire sale proceeds will go to parent L&T. L&T is selling 1.75 crore shares of L&T Infotech through the IPO. The price band for the IPO has been fixed at Rs 705-710 per share. The IPO opens for bidding today, 11 July 2016 and closes on Wednesday, 13 July 2016.
Axis Bank rose 0.52%. ITC gained 1.08%. As per media reports, the central government has finally made up its mind to sell minority stakes held in many listed and unlisted companies through the Specified Undertaking of the Unit Trust of India (SUUTI), in a bid to meet its asset-sale target. The government invited bids from bankers for the mandate to manage the stake-sale process, reports suggested. SUUTI held 11.53% stake in Axis Bank, 11.14% in ITC and 8.15% stake in L&T as per the shareholding pattern as on 31 March 2016.
Bharti Airtel gained 2.46% after the company yesterday, 10 July 2016 announced that the transaction for acquisition of rights to use 20 MHz 2300 Band 4G TD spectrum from Aircel was successfully concluded for 6 out of 8 circles barring Andhra Pradesh and Orissa, following the receipt of all necessary approvals and satisfying all the conditions. Bharti Airtel said it will update the exchanges when the transactions for the remaining circles of Andhra Pradesh and Orissa are completed.
Tata Steel rose 1.07% after the company after trading hours on Friday, 8 July 2016, announced that it has entered into discussions with strategic players in the steel industry, including Thyssenkrupp AG for a strategic collaboration for its European businesses. The decision has been taken as an alternative to the ongoing process for the divestment of loss making Tata Steel UK. Tata Steel said that the discussions for strategic collaboration are currently at preliminary stage and there is no certainty of a transaction as the outcome depends on consultation and negotiations with various stakeholders. Tata Steel also said it would begin separate processes for the sale of its South Yorkshire specialty steels business and the Hartlepool pipe mills, excluding the 20-inch tube mill, in the UK. Tata Steel has already received interest from several bidders for these two businesses and the formal process for the sale of the businesses will commence shortly.
Shares of IndusInd Bank rose 1.32% as the bank is scheduled to announce its Q1 June 2016 earnings today, 11 July 2016.
Equity mutual fund schemes including tax saving equity schemes known as Equity Linked Saving Schemes (ELSS) received net inflow of Rs 320 crore in June 2016, as per the monthly data released by the Association of Mutual Funds in India (AMFI). The inflow would have been much higher if one excludes large redemption of arbitrage funds. Media reports suggest that there was redemption of Rs 3500 crore from arbitrage funds in June 2016. AMFI does not give separate data on arbitrage funds. It clubs arbitrage funds under the equity fund category. Meanwhile, balanced funds received net inflow of Rs 2402 crore in June 2016. Balanced funds typically have 65-70% of their portfolio invested in equities and 30-35% in debt.
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