Key benchmark indices languished in negative terrain in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex was down 104.55 points or 0.38% at 27,731.96. The losses for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty 50 index was currently down 45 points or 0.52% at 8,570.25. Weakness in Asian stocks affected sentiment adversely.
In overseas stock markets, most Asian stocks dropped as investors reacted to a slew of earnings at companies from Samsung Electronics to Nintendo. Data showed that profit growth in China's industrial firms slowed in September from the previous month's rapid pace as several sectors showed weak activity, suggesting the world's second-biggest economy remains underpowered despite emerging signs of stability. Profits in September rose 7.7% to 577.1 billion yuan, slowing sharply from August's 19.5% jump, according to data released by the National Bureau of Statistics (NBS). US stocks edged lower yesterday, 26 October 2016 as health care companies fell and Apple pulled technology companies down.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,370 shares fell and 923 shares rose. A total of 171 shares were unchanged. The BSE Mid-Cap index was currently down 0.84%. The BSE Small-Cap index was currently down 0.48%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Cement stocks dropped. ACC (down 1.18%), Shree Cement (down 1.1%), and Ambuja Cements (down 0.97%) declined. UltraTech Cement rose 0.04%.
Grasim Industries declined 1.14%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
IT stocks declined. TCS (down 0.98%), Infosys (down 0.48%), Oracle Financial Services Software (down 0.93%), and Wipro (down 1.48%) edged lower.
HCL Technologies declined 1.6 % as the stock turned ex-dividend today, 27 October 2016, for interim dividend of Rs 6 per share for the year ending 31 March 2017 (FY 2017).
Tech Mahindra fell 0.91% ahead of its Q2 results today, 27 October 2016.
Smartlink Network Systems jumped 9.08% after net profit surged 187.39% to Rs 3.19 crore on 2.67% decline in net sales to Rs 8.39 crore in Q2 September 2016 over Q2 September 2015. The announcement was made after market hours yesterday, 26 October 2016.
Sun Pharmaceutical Industries rose 1.31% after the company announced the execution of definitive agreements by its wholly owned subsidiary for the acquisition of 100% of Ocular Technologies, Sarl (OTS), a portfolio company of Auven Therapeutics (Auven), an international private equity company focused on accelerated development of breakthrough therapeutic drugs. OTS owns exclusive, worldwide rights to Seciera (cyclosporine A, 0.09% ophthalmic solution). Sun Pharma will pay Auven $40 million upfront, plus contingent development milestones and sales milestones as well as tiered royalty on sales of Seciera as consideration for this acquisition.
Seciera is currently in a Phase-3 confirmatory clinical trial for the treatment of Dry Eye Disease, an inflammatory ocular disease affecting approximately 16 million people in the United States alone. Seciera is a patented, novel, proprietary formulation of cyclosporine A 0.09%. It is a clear, preservative-free, aqueous solution. In a completed Phase 2b/3 clinical trial in 455 patients, Seciera demonstrated a rapid onset of action and was well tolerated by the study population. Based on the published data in literature, the efficacy and safety endpoints in these trials compared favorably to other formulations of cyclosporine A.
The transaction is subject to approval of the US Federal Trade Commission as required under the Hart-ScottRodino Act and other closing conditions, and is expected to be completed by end of 2016, Sun Pharma said.
Separately, Sun Pharma announced before market hours today, 27 October 2016 that its wholly owned subsidiary has launched in US, the Authorized Generic (AG) versions for all strengths of Olmesartan Medoxomil tablets - therapeutic equivalent of Daiichi Sankyo Inc.'s Benicar (olmesartan medoxomil) tablets; Olmesartan Medoxomil-Hydrochlorothiazide tablets - therapeutic equivalent of Daiichi Sankyo Inc.'s Benicar HCT (olmesartan medoxomil-hydrochlorothiazide) tablets; Amlodipine Besylate-Olmesartan Medoxomil tablets - therapeutic equivalent of Daiichi Sankyo Inc.'s Azor (amlodipine and olmesartan medoxomil) tablets; and Amlodipine Besylate-Hydrochlorothiazide-Olmesartan Medoxomil tablets - therapeutic equivalent of Daiichi Sankyo Inc.'s Tribenzor (olmesartan medoxomil, amlodipine, hydrochlorothiazide) tablets.
The launch is pursuant to a distribution and supply agreement between Sun Pharma's wholly owned subsidiary and Daiichi Sankyo Inc., which grants the Sun Pharma subsidiary, exclusive rights to distribute these tablets in the US for a pre-determined period. Benicar, Benicar HCT, Azor and Tribenzor recorded US sales of approximately $2.5 billion for the 12 months ending 31 August 2016, as per IMS Health.
Cummins India fell 3.14% after net profit declined 0.53% to Rs 196.90 crore on 5.64% growth in total income to Rs 1429.13 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 26 October 2016. Cummins India's gross sales rose 5% to Rs 1331 crore in Q2 September 2016 over Q2 September 2015. Domestic sales grew by 8% to Rs 885 crore in Q2 September 2016 over Q2 September 2015. Exports grew by 1% to Rs 446 crore in Q2 September 2016 over Q2 September 2015.
Anant J. Talaulicar, Chairman & Managing Director (CMD) of Cummins India said that the company's exports continue to face headwinds due to the macroeconomic situation. The company continues to make inroads and gain market share domestically, Anant said. Government led investments in roadways and railways continued to drive Cummins' sales growth in the industrial engine segment, the CMD added. Despite exports revenues remaining depressed, the company's strong focus on cost optimization and efficiency improvement has helped it sustain its profitability, Anant said. Cummins remains committed to investing in customer-centric, fit-for-market products and technologies as well as in leadership and diverse talent development to continue delivering profitable growth in the future, Anant said.
Lakshmi Machine Works shed 4.89% after net profit declined 31.72% to Rs 37.92 crore on 14.36% decline in net sales to Rs 567.07 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 26 October 2016.
In a separate announcement after market hours yesterday, 26 October 2016, Lakshmi Machine Works announced that its board of directors has approved the buyback of 3.11 lakh equity shares, or 2.76% equity, of the company at Rs 4,450 per share, aggregating to an amount of Rs 138.39 crore.
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