Market Live: Sensex rebounds 100 pts, Nifty opens above 9850; Aurobindo soars 8%

10.18 am Market Check: Equity benchmarks continued to trade higher in morning, with the Sensex rising over 100 points, backed by ITC, Reliance Industries and HDFC Bank.

The 30-share BSE Sensex was up 130.13 points at 31,841.12 and the 50-share NSE Nifty gained 39.25 points at 9,866.40 on strong market breadth.

About 1,444 shares advanced against 584 declining shares on the BSE.

The broader markets continued to outperform benchmarks, with the BSE Midcap and Smallcap indices rising 0.6 percent and 0.8 percent, respectively.

Grasim Industries shares fell more than 22 percent in morning trade Wednesday on account of demerged of Aditya Birla Capital (formerly known as Aditya Birla Financial Services).

9:55 am Tie-up: Shares of Ashok Leyland gained 2 percent intraday as the company has entered into strategic alliance for electric mobility solutions with Sun Mobility.

Sun Mobility is promoted by Chetan Maini, Founder of Reva and Uday Khemka, Vice Chairman of SUN Group.

This global partnership between Ashok Leyland and Sun Mobility will leverage India’s innovation and engineering potential to develop world class electric mobility solutions.

Ashok Leyland has been pioneer in electric buses, hybrid buses, in both CNG as well as diesel, including those that do not require a plug-in.

Sun Mobility aims to be the leading provider of universal energy infrastructure and services to accelerate mass electric vehicle usage.

Sun Mobility plans to revolutionlise the transportation sector by deploying a unique open-architecture ecosystem built around their proprietary smart batteries and a network of quick interchange battery stations. These stations, predominantly powered by renewable energy, will refuel electric vehicles at cost lower than and speed faster than conventional diesel/petrol pumps.

9:38 am FII View: Surendra Goyal of Citi said midcaps have been at the forefront of Indian markets’ performance for the past couple of years, and the trend has so far sustained in CY17, although there has been some reversal in relative performance over the past three months.

The BSE Midcap Index rallied more than 25 percent this year against 20 percent for Sensex.

Goyal sees downside risks to aggregate bottom-up FY18 earnings estimates for coverage universe.

“We have Sensex target of 32,200 and remains selective on midcaps,” he said.

9:27 am Buzzing: Shares of Aurobindo Pharma gained over 7.5 percent in morning trade as investors cheered a product approval by the US drug regulator.

The US Food and Drug Administration (FDA), late on Tuesday, gave an approval to Sevelamer Tablets. These are used to treat patients with chronic kidney diseases.

“The approved product has an estimated market size of US$ 1.9 billion for the twelve months ending May 2017 according to IMS,” the company said in a filing to the exchanges.

The company further informed that the product will be launched immediately from its Hyderabad facility. “This is the 124th ANDA (including 21 tentative approvals) to be approved out of Unit VII formulation facility in Hyderabad,” the company further added.

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9:15 am Market Check: Equity benchmarks rebounded on Wednesday after yesterday’s steep fall, backed by short covering in beaten down stocks.

The 30-share BSE Sensex was up 104.05 points at 31,815.04 and the 50-share NSE Nifty rose 33.90 points to 9,861.05.

Healthcare stocks were in demand as Aurobindo Pharma rallied 7.5 percent followed by Lupin, Sun Pharma after USFDA approvals.

HUL gained nearly a percent post better-than-expected earnings. ITC rebounded 1 percent after yesterday’s 13 percent correction.

Eicher Motors, ACC and Zee Entertainment gained 1 percent whereas Bajaj Auto and UltraTech Cement were under pressure.

Nifty Midcap was up 0.4 percent as about five shares advanced for every share falling on the BSE.

Lakshmi Electrical Control Systems surged 10 percent.

JM Financial, Sintex Industries, Federal Bank, Amtek Auto, Ashok Leyland, Sundaram Finance, Jubilant Life and Jet Airways gained up to 2 percent while Sasken Communications, KPIT Tech and Havells India were down.
Asia markets were mixed as dimmed prospects for US healthcare reform led to the dollar wallowing near 10-month lows.