Key benchmark indices trimmed gains in mid-morning trade after an initial upmove. At 11:15 IST, the barometer index, the S&P BSE Sensex, was up 106.78 points or 0.3% at 36,301.08. The Nifty 50 index was up 19.15 points or 0.18% at 10,895.90. Metal and mining stocks gained as copper prices rose in global commodity markets. Gains in Asian stocks and US index futures following a cease-fire on tariffs between Beijing and Washington over the weekend boosted sentiment.
Domestic stocks opened on a firm note tracking upbeat Asian stocks and US index futures following a cease-fire on tariffs between Beijing and Washington over the weekend. Stocks held firm in morning trade.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1243 shares rose and 906 shares fell. A total of 113 shares were unchanged.
Overseas, Asian stocks and US index futures jumped following a cease-fire on tariffs between Beijing and Washington at the Group of 20 meeting in Argentina over the weekend. Trading in US index futures indicated that the Dow could surge 485 points at the opening bell today, 3 December 2018.
US stocks ended higher Friday, as investors turned positive on the outlook for trade ahead of a meeting between the American and Chinese presidents.
President Donald Trump and Chinese President Xi Jinping approved the deal on Saturday in Buenos Aires. It offers Beijing a reprieve from a planned increase in tariffs, scheduled for 1 January 2019, on $200 billion in Chinese goods exports to the US Tariffs were scheduled to rise to 25% from 10%. The postponement relies on progress in talks that both sides aim to complete in the next 90 days covering broader issues, including intellectual property protection.
On the data front, the MNI Chicago business barometer jumped 8 points to 66.4 in November to a 4 year high, ending a streak of three straight declines. The survey is often seen as a bellwether for the broader US economy.
Back home, Sun Pharmaceutical Industries fell 7.72%. According to media reports, stock markets regulator Sebi is likely to reopen an insider trading case against Sun Pharmaceutical Industries as well as probe alleged lapses by some of its promoters and other entities in raising funds overseas. The development comes after a whistleblower reportedly approached Sebi with a document alleging various irregularities by the company, its promoter Dilip Shanghvi and others, reports added.
In August 2017, Sun Pharmaceutical Industries, its MD Dilip Shanghvi, and nine other entities settled an insider trading probe on payment of Rs 18 lakh towards settlement charges. Sebi is likely to reopen the case. The markets regulator has powers to reopen cases of settlement related to insider trading on various grounds, reports suggested.
With reference to news item captioned "Governance cloud over Sun, stock at 6-mth low.", the company issued a clarification on Thursday, 29 November 2018, that the article refers to a note circulated by one of the securities firm. The points raised in this note pertain to historic events, some of which are dated as far back as 10-15 years. Certain points raised in the said note are incomplete and have been presented in a negative manner. The supporting information to the points raised in the note has been sourced from public domain and hence this information/data is already available in public domain. Further, there is no material impact of the news article on the company.
Meanwhile, Sun Pharmaceutical Industries announced before trading hours today, 3 December 2018, that it has received final approval from US Food and Drug Administration (USFDA) for its abbreviated new drug application (ANDA) for generic version of Ganirelix Acetate Injection, 250 mcg/0.5 mL. The generic version is therapeutic equivalent to Organon's Ganirelix Acetate injection, 250 mcg/0.5 mL. As per IQVIA, Ganirelix Acetate injection, 250 mcg/0.5 mL had annual sales of approximately $67 million in the US for the 12 months ended September 2018. The commercialization of this product in the US market is expected in Q4FY2019.
Metal and mining stocks gained as copper prices rose in global commodity markets. Vedanta (up 4.19%), JSW Steel (up 1.54%), Tata Steel (up 2.74%), Steel Authority of India (Sail) (up 2.71%), National Aluminium Company (up 0.37%), Hindustan Zinc (up 1.24%), Jindal Steel & Power (up 5.78%), Hindalco Industries (up 3.77%), NMDC (up 0.68%) and Hindustan Copper (up 1.87%) edged higher.
Copper edged higher in the global commodities market. High Grade Copper for March 2019 delivery was currently up 1.97% at $2.8425 per pound on the COMEX.
On the macro front, India's gross domestic product (GDP) rose 7.1% in July-September, down from 8.2% in the previous quarter though it still marked a comforting uptick compared to the previous year's 6.3% reading in the same quarter. The manufacturing sector expanded 7.4% following 13.5% surge in the previous quarter while the agriculture sector grew 3.8% from 5.3% in the previous quarter. Trade, Hotel, Transport, Communication &Services related to Broadcasting rose 6.80%, almost matching the growth in previous quarter. Financial, Real Estate & Professional Services expanded 6.30%, easing slightly from a 6.52% in previous quarter. The data was released by the government after market hours on Friday, 30 November 2018.
The combined Index of Eight Core Industries stood at 134.8 in October, 2018, which was 4.8% higher as compared to the index of October, 2017. Its cumulative growth during April to October, 2018-19 was 5.4%. The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP). The data was released by the government after market hours on Friday, 30 November 2018.
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