Firmness continued on the bourses in mid-morning trade with the barometer index, the S&P BSE Sensex, hitting fresh record high. The Sensex was up 109.47 points or 0.48%, up 87.71 points from the day's low and off 11.14 points from the day's high. The market breadth, indicating the overall health of the market was strong. The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 22 April 2014.
Dr. Reddy's Laboratories edged higher after the company announced that it has launched Fenofibrate Capsules, USP 43 mg and 130 mg, a therapeutic equivalent generic version of ANTARA (fenofibrate) capsules, in the US market on Tuesday, 22 April 2014, after approval from the United States Food & Drug Administration (USFDA). Lupin edged higher after the company announced that it has entered into a strategic joint venture agreement with Toyama based Japanese pharmaceuticals company, Yoshindo Inc. (Yoshindo) to create a new entity, YL Biologics (YLB). Among bank stocks, shares of private sector bank Kotak Mahindra Bank hit record high. ICICI Bank hit 52-week high. IT stocks were mixed.
The market opened on a positive note after provisional data released by the stock exchanges after trading hours on Tuesday, 22 April 2014, showed that foreign funds remained net buyers of Indian stocks on Tuesday, 22 April 2014. The Sensex and the 50-unit CNX Nifty, both, hit record high. Key benchmark indices extended initial gains in morning trade. Firmness continued on the bourses in mid-morning trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 22 April 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 162.93 crore on Tuesday, 22 April 2014, as per provisional data from the stock exchanges.
Indian stocks may remain volatile today, 23 April 2014, as traders roll over positions in the futures & options (F&O) segment from the near month April 2014 series to May 2014 series. The April 2014 F&O contracts expire today, 23 April 2014. The stock market remains closed tomorrow, 24 April 2014, on account of Parliamentary elections in Mumbai constituency.
At 11:15 IST, the S&P BSE Sensex was up 109.47 points or 0.48% at 22,867.84. The index jumped 120.61 points at the day's high of 22,878.98 in mid-morning trade, a lifetime high for the barometer index. The index rose 21.76 points at the day's low of 22,780.13 in early trade.
The CNX Nifty was up 26.75 points or 0.39% at 6,842.10. The index hit a high of 6,861.60 in intraday trade, a lifetime high for the index. The index hit a low of 6,820.75 in intraday trade.
The market breadth, indicating the overall health of the market was strong. On BSE, 1,331 shares gained and 881 shares fell. A total of 114 shares were unchanged.
The BSE Mid-Cap index was up 36.83 points or 0.5% at 7,423. The BSE Small-Cap index was up 45.87 points or 0.6% at 7,674.97. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 819 crore by 11:15 IST, compared with Rs 509 crore by 10:15 IST.
Among the 30-share Sensex pack, 22 stocks gained and rest of them declined.
Sun Pharmaceutical Industries (up 1.85%), Bharat Heavy Electricals (Bhel) (up 1.71%) and Axis Bank (up 1.69%) edged higher from the Sensex pack.
Dr. Reddy's Laboratories (DRL) rose 1.14%. DRL during market hours today, 23 April 2014, announced that it has launched Fenofibrate Capsules, USP 43 mg and 130 mg a therapeutic equivalent generic version of ANTARA (fenofibrate) capsules, in the US market on Tuesday, 22 April 2014, after approval from the United States Food & Drug Administration (USFDA).
The ANTARA (fenofibrate) capsules brand and generic had US sales of approximately $74 million for twelve months ended in 28 February 2014, according to IMS Health data. DRL's Fenofibrate capsules, USP 43 mg is available in bottle counts of 30 and 130 mg are available in bottle counts of 30 and 90, the company said.
Lupin rose 0.52%. Lupin during market hours today, 23 April 2014, announced that it has entered into a strategic joint venture agreement with Toyama based Japanese pharmaceuticals company, Yoshindo Inc. (Yoshindo) to create a new entity, YL Biologics (YLB). YLB will be jointly managed by both partners and will be responsible for conducting clinical development of certain Biosimilars including regulatory filings and obtaining marketing authorizations in Japan.
The new entity YLB will in-license Monoclonal Antibodies (mAbs) from Lupin and also partner with other companies across the globe for the Japanese market which already has a clear cut regulatory regime in place for the development and commercialization of Biologicals. Lupin's Etanercept biosimilar, developed by its Biotechnology Research Group in Pune will be the first product to be licensed for clinical development to YLB. Etanercept (Originator Trade name: Enbrel) is a biopharmaceutical product approved globally for treating autoimmune diseases such as Rheumatoid arthritis, Psoriasis and Ankylosing spondylitis. Enbrel is marketed in Japan by Takeda Pharmaceutical and had annual US sales of $496 million (IMS MAT March, 2013).
The Japanese Biological market is currently valued at close to $12 billion and growing at 2-3% annually. mAbs make up $3.5 billion of the overall Japanese biological sales and growing at 5% (IMS Health).
Lupin will be entitled to milestone based licensing income in addition to commercial supplies of the drug substance. Both Lupin and Yoshindo will then market the product under their own brand names by leveraging their respective sales networks.
The ANTARA (fenofibrate) capsules brand and generic had US sales of approximately $74 million for twelve months ended in 28 February 2014, according to IMS Health data. DRL's Fenofibrate capsules, USP 43 mg is available in bottle counts of 30 and 130 mg are available in bottle counts of 30 and 90, the company said.
The ANTARA (fenofibrate) capsules brand and generic had US sales of approximately $74 million for twelve months ended in 28 February 2014, according to IMS Health data.
IT stocks were mixed. Tata Consultancy Services (TCS) (up 0.61%), Infosys (up 1.16%), Polaris Financial Technology (up 1.06%), Hexaware Technologies (up 2.88%) and MphasiS (up 1.54%) gained.
HCL Technologies fell 0.66%.
Wipro shed 0.07% to Rs 530.95 in volatile trade. The stock hit high of Rs 538 and low of Rs 523.80 so far during the day.
Tech Mahindra rose 0.3%. The company after market hours on Tuesday, 22 April 2014, announced that it has been chosen by New Hampshire's Division of Motor Vehicles (DMV) to implement its Motor Vehicle Enterprise System (MOVES), a configurable Microsoft Dynamics CRM-based solution. The solution will replace and modernize New Hampshire DMV's existing legacy system. This is a multi-million dollar deal, and the system will be implemented over a span of 22 months, Tech Mahindra said in a statement.
Zensar Technologies rose 4.77% after consolidated net profit surged 41.3% to Rs 55.25 crore on 18.6% growth in revenue to Rs 602.54 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Tuesday, 22 April 2014.
Zensar Technologies' consolidated net profit surged 36.1% to Rs 237.53 crore on 9.5% growth in revenue to Rs 2315.60 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Announcing the results Dr. Ganesh Natarajan, Vice Chairman and CEO, Zensar Technologies said, "We are delighted with the smart uptick in our applications business in Western markets, with sequential growth of 10.3% this quarter in constant currency. We are seeing increasing customer demand for all our services, which now cover the full span, from digital transformation through IM, ERP, Applications Management to Business Process Management".
Zensar said that it has been focusing on new client acquisition and strategic deals in core markets with significant traction in large Fortune 1000 companies. The company recently announced Rs 100 crore of new business in core markets, it added.
Nitin Parab, Chief Executive and Head, Enterprise Transformation Business, Zensar said, "Our strategies for new client acquisition, and for supersizing deals in the US region have shown significant traction helping provide the necessary boost to sales. The client acquisition in the US has shown optimistic trends in core verticals that we are focusing on. The order book for the year ahead looks strong and we hope to close some significant deals in the pipeline in the coming months".
Zensar Technologies' board of directors at its meeting held on Tuesday, 22 April 2014, recommended final dividend of Rs 6 per share for FY 2014, subject to the approval of shareholders.
Shares of private sector banking giant ICICI Bank were up 0.71% at Rs 1,297. The stock hit a 52-week high of Rs 1,300 in intraday trade.
Shares of another private sector bank Kotak Mahindra Bank were up 1.86% at Rs 816.55. The stock hit a record high of Rs 817.50 in intraday trade.
In the foreign exchange market, the rupee edged lower against the dollar on importers' dollar purchases and on concern a decline in China's factory output will damp demand for the region's assets. The partially convertible rupee was hovering at 61.075, compared with its close of 60.76/77 on Tuesday, 22 April 2014.
Indian government bond prices dropped on concern a slide in the currency will stoke inflation as India imports about 80% of its oil. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.8707%, higher than its close of 8.8545% on Tuesday, 22 April 2014. Bond yields and bond prices move in opposite direction.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
Asian stocks edged lower on Wednesday, 23 April 2014, after Chinese manufacturing data signaled persisting weakness in the world's second-largest economy. Key benchmark indices in Taiwan, China, Indonesia, South Korea, Singapore and Hong Kong were off 0.09% to 0.82%. In Japan, the Nikkei 225 index was up 0.74%.
China's Purchasing Managers' Index for manufacturing was at 48.3 in April, compared with 48 in March, according to a preliminary reading published by HSBC Holdings Plc and Markit Economics today, 23 April 2014. A figure below 50 signals a contraction.
On Tuesday, 22 April 2014, China's central bank lowered reserve ratios at some rural lenders in the latest in a series of measures to help combat a slowing economy.
Trading in US index futures indicated that the Dow could advance 4 points at the opening bell on Wednesday, 23 April 2014. US stock markets edged higher Tuesday, 22 April 2014, with the S&P 500 extending its winning streak to six days, the longest streak of gains since September 2013. Investors welcomed better-than-expected results from Comcast Corp. and Harley-Davidson, Inc., while a flurry of deal news in the health-care sector added to positive sentiment.
In economic data, the sales pace of existing homes ticked down in March to the slowest rate since July 2012, according to data released Tuesday, 22 April 2014.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
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