Volatility continued with key benchmark indices moving into the green from red in morning trade. At 10:17 IST, the barometer index, the S&P BSE Sensex, was up 14.86 points or 0.06% at 25,059.29. The gains for the 50-unit Nifty 50 index were higher in percentage terms compared with the gains for the Sensex. The Nifty was currently up 12.85 points or 0.17% at 7,623.30. The Sensex regained the psychologically important 25,000 mark after falling below that level when it opened with a downward gap.
The Sensex and the Nifty bounced back after both these key benchmark indices hit their lowest level in almost 14 weeks in early trade. The Sensex fell 176.70 points, or 0.7% at the day's low of 24,867.73 in early trade, its lowest level since 8 September 2015. The Nifty fell 59.40 points, or 0.78% at the day's low of 7,551.05 in early trade, its lowest level since 8 September 2015.
The market breadth indicating the overall health of the market turned positive from negative in morning trade. On BSE, 1,102 shares rose and 813 shares fell. A total of 126 shares were unchanged. The BSE Mid-Cap index was currently up 0.46%. The BSE Small-Cap index was currently up 0.19%. Both these indices outperformed the Sensex.
In overseas markets, Asian equities edged lower as investors remain focused on a decision from the US Federal Reserve after a monetary policy review this week. The Fed is widely expected to raise the federal funds rate by 25 basis points after the conclusion of a two-day monetary policy meeting on 15-16 December 2015. US stocks tumbled during the previous trading session on Friday, 11 December 2015, as falling prices in crude oil and worries about junk-bond markets rattled Wall Street. News during the previous day on 10 December 2015 that high-yield mutual fund Third Avenue Focused Credit Fund is blocking investors from withdrawing their money, added to market jitters.
Shares of oil exploration firms fell after global crude oil prices declined. Cairn India (down 2.35%), Oil India (down 1.06%) and Reliance Industries (down 0.35%), edged lower. Lower crude oil prices would result in lesser realizations from crude sales for oil exploration firms.
Shares of public sector oil marketing companies (PSU OMCs) also edged lower. HPCL (down 0.39%) and BPCL (down 0.19%), edged lower. Indian Oil Corporation was up 0.48%.
In the global commodities markets, Brent for January settlement was currently off 30 cents at $37.63 a barrel. The contract had fallen $1.80 a barrel or 4.53% to settle at $37.93 a barrel during the previous trading session.
TCS dropped 1.6% after the company said in its update regarding its operations in Chennai that recent severe flooding in the city led to major disruptions in its ability to function. The normal business functioning of company's facilities had to be halted in the city all week since 1 December 2015 due to flooding. This is expected to have a material impact on the company's revenue in the seasonally weak Q3 December 2015, it added. The company made the announcement after market hours on Friday, 11 December 2015. Chennai is one of the company's largest delivery function with over 65,000 employees. The majority of facilities in Chennai opened for normal business functioning on 7 December 2015, but attendance rates were lower than normal as employees were still recovering from the flood's aftermath.
NTPC was down 0.08%. The company after market hours on Friday, 11 December 2015, announced that it has raised Rs 500 crore through private placement of secured non-convertible debentures at a coupon of 8.19% with a 10 year door to door maturity on 10 December 2015. The proceeds will be mainly utilized to finance capital expenditure of the company.
Natco Pharma rose 1.38% after the company and its partner Alvogen said during trading hours today, 14 December 2015, that they have settled the patent infringement suit filed by Gilead Sciences, Inc., Hoffmann-La Roche Inc., F. Hoffmann-La Roche and Genentech, Inc. against Alvogen and Natco in New Jersey District Court. Natco Pharma and Alvogen had partnered on the first Abbreviated New Drug Application (ANDA) containing a paragraph IV certification filed with the US Food and Drug Administration (USFDA) for generic versions of Tamiflu oral capsules (oseltamivir phosphate), 30 mg, 45 mg and 75 mg. It may be recalled that USFDA had granted tentative approval to Natco Pharma for the generic oseltamivir phosphate capsules on 14 March 2014. Under the terms of the settlement, Alvogen will be able to market the oseltamivir phosphate capsules before the expiration of the pediatric exclusivity period of 23 February 2017.
Among macro economic data, India's Index of Industrial Production (IIP) growth surged to 60-months high of 9.8% in October 2015 over a year ago compared with the revised growth of 3.8% in September 2015. An extremely farvourable base effect with IIP declining 2.7% in October 2014 has mainly fuel the IIP growth for October 2015. Also, the festive season shifting to November this year compared with October in last year, aided IIP growth in October 2015 driven by pre-festive season surge in production. The data was announced by the government after market hours on Friday, 11 December 2015.
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