Market Live: Global cues lift Sensex over 150 pts, Midcap outperforms; LT rallies

11:25 am USFDA nod: Glenmark Pharmaceuticals has received final approval from the US health regulator for generic version of Rythmol SR capsules, an anti-arrhythmic medication, which treats illnesses associated with rapid heart beats.

“Glenmark Pharmaceuticals Inc., USA has been granted final approval by the United States Food & Drug Administration (US FDA) for Propafenone Hydrochloride extended-release capsules USP, 225 mg, 325 mg, and 425 mg,” Glenmark Pharmaceuticals said in a BSE filing.

Propafenone Hydrochloride extended-release capsules is generic version of GlaxoSmithKline, LLC’s Rythmol Capsules.

11:10 am North Korea fears: Japan’s prime minister today called for a boost to the country’s defences in the face of North Korean threats, warning that Tokyo needs to be able to protect itself.

The call is a common refrain from nationalist leader Shinzo Abe, who has long advocated a stiffening of Japan’s military posture, despite its officially pacifist constitution.

In a speech to senior officers of the Self-Defense Forces — Japan’s name for the military — Abe said: “No one else will protect you if you don’t have the mindset of protecting yourself.”

“We have to take all appropriate measures against (incidents such as) North Korea’s missile launch over Japan,” added the premier, who said he had asked his defence minister to draw up a blueprint for Japan’s medium-term defence strategy.

10:59 am Auto sales: Domestic passenger vehicle sales grew 13.76 percent to 2,94,335 units in August from 2,58,737 units in the same month last year.

Car sales were up 11.8 percent to 1,98,811 units as against 1,77,829 units in August last year, according to data released by the Society of Indian Automobile Manufacturers (SIAM).

Motorcycle sales last month jumped by 12.93 percent to 11,35,699 units as against 10,05,654 units in August 2016. Total two-wheeler sales in August grew 14.69 percent to 18,91,062 units compared to 16,48,871 units in the year-ago month.

Sales of commercial vehicles rose by 23.22 percent to 65,310 units in August, the SIAM said. Vehicle sales across categories registered a growth of 14.49 percent to 23,02,158 units from 20,01,802 units in August 2016, it added.

10:50 am Commodity Market: Silver prices dipped Rs 435 to Rs 41,713 per kg in trade as speculators cut down their holdings to book profits amid a weak trend in global markets.

Analysts attributed the fall in silver in futures trade to a weak trajectory in global markets as the dollar strengthened against a basket of major currencies after Hurricane Irma’s force waned and tension eased over North Korea, eroding demand for a safe haven.

Moreover, emergence of profit-booking at existing levels too weighed on prices.

10:40 am Buzzing: Shares of gas companies, Petronet LNG and GAIL, rose between 5 and 7 percent intraday as investors cheered Petronet’s successful renegotiation with Australia’s Gorgon project for lower LNG prices.

Over the weekend, oil minister Dharmendra Pradhan said they renegotiated the pricing of liquefied natural gas (LNG) imported from Australia’s Gorgon project to make the imported fuel affordable to price-sensitive domestic customers.

India has been trying to leverage its position as one of the biggest energy consumers to strike better bargains for its companies. In 2015 it renegotiated the LNG pricing formula with Qatar’s Rasgas to buy the gas at half the original price.

India’s top gas importer Petronet LNG signed a deal in 2009 with Exxon Mobil Corp to buy 1.5 million tonnes of LNG annually from Gorgon for 20 years. At that time Petronet agreed to buy LNG at a cost equivalent to 14.5 percent of the oil price and to pay for the shipping freight as well.

10:22 am Acquisition: Infosys has completed the acquisition of Brilliant Basics, a London-based product design and customer experience (CX) innovator known for its world-class design thinking-led approach and experience in executing global programs.

The acquisition is in accordance with the terms set out in the agreement announced by the company on August 3, 2017. Through this acquisition, Infosys further expands its worldwide connected network of Digital Studios that are focused on fulfilling the needs of global clients for end-to-end Digital Transformation solutions required to meet customer demand for next-generation enhanced customer experiences.

10:10 am Market Check: Equity benchmarks continued to trade strong in morning, tracking positive Asian cues.

The 30-share BSE Sensex was up 177.41 points at 31,864.93 and the 50-share NSE Nifty rose 52.60 points to 9,987.40.

The broader markets outperformed benchmarks as the BSE Midcap and Smallcap indices gained 0.7 percent each on strong breadth. About two shares advanced for every share falling on the BSE.

Larsen & Toubro was biggest gainer again, up 3 percent on top of 4 percent upside in previous session.

Asian stocks rose on fading risk aversion as the dollar clawed back losses. Markets also digested headlines concerning developments out of the People’s Bank of China and European Central Bank announced at the weekend. Japan’s Nikkei, Hong Kong’s Hang Seng, Australia’s ASX 200 and South Korea’s Kospi were up 0.8-1.4 percent.

10:02 am Japan’s machinery orders: Japan’s core machinery orders rose in July at the fastest pace since January 2016, rebounding from a third straight month of falls and an encouraging sign of the increased capital investment needed for sustained economic recovery, reports Reuters.

The 8 percent rise in core orders, which exclude ships and orders from electric power utilities, followed a 1.9 percent decline in June. Orders from manufacturers rose 2.9 percent in July, driven by railway cars, while service-sector orders grew 4.8 percent, led by computer equipment, Cabinet Office data showed on Monday.

9:55 am Acquisition: Share price of Cyient added 2 percent intraday as it is going to acquire 100 percent equity ownership in B&F Design Inc.

The company through its step down subsidiary Cyient Defence Services Inc. signed a definitive agreement to acquire 100 percent equity ownership in B&F Design Inc.

This transaction will further strengthen the automation on its key vertical aerospace and defence in line with strategy for growth.

“This is Cyient’s sixth acquisition in the last three years as part of its design-build-maintain strategy,” said by company.

9:48 am Rupee: The rupee weakened 9 paise to 63.87 against the US dollar in early trade on fresh demand for the greenback from banks and importers.

A strong dollar in overseas markets weighed on the rupee sentiment, currency traders told PTI.

The dollar gained against global currencies amid the United Nations’ move to impose fresh sanctions on North Korea.

The rupee had continued its rising run for the third day, surging 27 paise to hit a fresh one-month high of 63.78 against the US currency on Friday.

9:45 am Order win: Shares of White Organic Agro has locked at 5 percent upper circuit on the back of prestigious path breaking order from Patanjali Ayurveda.

There were pending buy orders of 10,315 shares, with no sellers available.

“The acquisition of stake in Future Farms LLP has started showing great results and adding up to the value of the company, as Future Farms has recently bagged order of supplying aloe vera pulp from its Kanpar, Gujarat unit to consumer product manufacturer Patanjali Ayurveda,” company said.

9:35 am IPO opens: The Rs 500-crore initial public offering of Matrimony.com has opened for subscription today, with a price band of Rs 983–985 per share.

This would be the first online matchmaking services provider to list on exchanges. The issue will close on September 13.

The public issue comprised of fresh issue up to Rs 130 crore and an offer for sale of up to 37,67,254 equity shares.

The offer for sale consisted of up to 14,61,006 equity shares by Bessemer India Capital Holdings II Ltd, 1,55,760 shares by Mayfield XII (Mauritius), 16,83,207 shares by CMDB II, 3,84,447 shares by Murugavel Janakiraman and 82,834 shares by Indrani Janakiraman. The offer also included a reservation of shares worth Rs 50 lakh for eligible employees.

Matrimony.com currently operates its business in two segments – one is matchmaking services and second is marriage services and related sale of products.

It already raised nearly Rs 225.88 crore from anchor investors on September 8, ahead of its initial share sale opening on September 11. It will allot 22.93 lakh shares to 10 anchor investors (including Goldman Sachs, Small Cap World Fund, HDFC Trustee Company, Baring Private Equity India AIF, DB International etc) at higher end of the IPO price band.

9:25 am Buzzing: Shares of IndusInd Bank and Bharat Financial Inclusion rose 1-2 percent in early trade as investors reacted to developments around a possible deal between the two entities.

Early on Monday, the private sector lender informed exchanges that it had entered into an ‘exclusivity agreement’ with the micro lender in a bid to explore a merger or expansion plans.

The transaction between the two companies would be subject to due diligence, agreement on the appropriate on the appropriate transaction structure, definitive documentation and Board, shareholders, regulatory, NCLT and other third-party approvals, as applicable, the release said.

The release also indicates that the deal is likely in its final stages, said SP Tulsian of sptulsian.com adding that the swap ration will be most important thing to look at.

According to a source-based report, the swap ratio being considered is one share of IndusInd Bank for 1.75 shares of Bharat Financial. A deal is likely to be announced by the end of September.

9:15 am Market Check: Equity benchmarks started off the week on a positive note, after a consolidation seen in previous week.

The 30-share BSE Sensex was up 183.49 points at 31,871.01 and the 50-share NSE Nifty gained 51.50 points at 9,986.30.

Bank of Baroda, Tata Motors, IndusInd Bank, L&T, Tech Mahindra and Reliance Industries were early gainers while Vedanta, Tata Steel, Tata Power and Power Grid were early losers.

Nifty Midcap 100 and BSE Smallcap indices outperformed benchmarks, rising 0.7 percent each on strong breadth. About five shares advanced for every share falling on the BSE.
Bharat Financial Inclusion, Future Enterprises, Future Retail, Future Consumer, Jyoti Structures, Kamat Hotels, Federal Mogul, Jain Irrigation, Bajaj Finance and Bombay Dyeing rallied up to 6 percent.