Market Live: Sensex recoups opening losses, Nifty above 9600; ICICI Bank leads
10:15 am Buzzing: Aurobindo Pharma share price surged 10.6 percent intraday after the company said it is less worried about pricing pressure in the US and is confident about FY18 growth despite weak Q4 earnings.
The healthcare company, in its conference call, said price erosion in the US is likely to continue and that may be 7-8 percent. This is far less than its peers that expect in double digits.
Intensity of pricing pressure is expected to taper off in next few quarters, it believes.
It has strong portfolio of products and doesn’t have dependence on any single product, Aurobindo said, adding it does not expect any pricing pressure on portfolio.
The company is confident of growth in FY18 YoY.
9:58 am ADAG stocks rebound: Anil Dhirubhai Ambani Group stocks rebounded after a 6-18 percent correction in previous session.
Reliance Infrastructure, Reliance Defence, Reliance Capital and Reliance Power gained 1-2 percent.
9:41 am Market Update: Equity benchmarks recouped opening losses, with the Nifty reclaiming its 9600 level, backed by banking & financials, auto and pharma stocks.
The 30-share BSE Sensex was up 52.31 points at 31,161.59 and the 50-share NSE Nifty rose 9.85 points to 9,614.75.
9:35 am FII View: Sakthi Siva of Credit Suisse said net foreign buying in Emerging Asia Ex-China has climbed to USD 28.4 billion in 2017 so far with the three biggest recipients being Taiwan, India and Korea.
On a rolling 12-month basis, net foreign buying in Emerging Asia Ex-China Ex-Malaysia has risen to 0.8 percent of market cap. “This is just shy of our 1 percent of market cap threshold that we consider crowded,” she said.
With MSCI Asia Ex-Japan rallying to 621, she highlighted a further 3 percent upside to year-end target of 640.
9:29 am Buzzing: Shares of Jubilant Foodworks plunged 13 percent intraday as investors reacted negatively to the company’s poor results.
The Indian operator of Domino’s Pizza brand posted dismal set of numbers, with profit declining 75.9 percent for the March quarter at Rs 6.7 crore against Rs 27.8 crore year on year. A one-time loss of Rs 12.2 crore had hit the company’s financials as well. The shocker, however, came in terms of the same-store-sales-growth (SSSG), which came in lower at -7.5 percent against analysts’ expectation of around 4 percent.
Also read – More than 100 stocks have slipped up to 30% from record highs hit in April
9:15 am Market Check: Equity benchmarks started off Tuesday’s trade on negative note due to profit booking after rising for three consecutive sessions.
The 30-share BSE Sensex was down 8.56 points at 31,100.72 and the 50-share NSE Nifty fell 9.50 points to 9,595.40.
L&T, M&M, NTPC, GAIL, Tata Motors, Aurobindo Pharma, Tech Mahindra, IOC and Adani Ports were early gainers while BHEL, Coal India, TCS, SBI, Bharti Airtel, BPCL, Power Grid and Vedanta were losers.
The rupee opened at 64.63 to the dollar, down 0.2 percent from its previous close. On Monday, the rupee closed marginally weaker against the dollar at 64.50.
Bhaskar Panda of HDFC Bank said that the dollar index has firmed up a bit on the basis of political uncertainties in Europe. He said the USD-INR pair has been in consolidation mode around 64.50 to the dollar and that the same trend is likely to continue.
Panda added that the USD-INR is expected to trade between 64.45 and 64.70 in the immediate term.
Shares indexes in Asia traded mixed, following a directionless session yesterday as major markets around the world were closed for various holidays.
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