Indian Markets: Slippery Close

by: Equitymaster

After opening on a positive note, benchmark indices pared most of their gains in the subsequent hours of trade as selling was witnessed at higher levels. While stocks from the software, pharma and realty sectors gained investors' interest; stocks from the PSU and metal sectors remained at the receiving end. As regards global markets, the Asian indices closed in the green, the European indices are trading higher currently.

The BSE Sensex closed almost 150 points higher, while the NSE Nifty closed higher by 7 points higher. The BSE Midcap and Smallcap indices also closed higher by 1.5% and 2% respectively. The rupee was trading at 48.04 to the dollar.

Taking cues from its global peers, Indian bourses too opened the day's proceedings on a buoyed note. But during subsequent hours of trade, markets started paring gains and came off from the highs of the day. The overall market breadth was positive with gainers outnumbering losers by a ratio of 1.7 to 1 on the BSE. While Infosys and Satyam (each up 6%) emerged as the top gainers on the BSE Sensex today, Reliance Communication (down 5%) and ONGC (down 4%) were the key losers.

As per a leading business daily, Tata Motors' UK subsidiary, Tata European Technical Centre Plc has acquired a 50.3% holding in Norway-based Miljo Grenland/Innovasjo for Rs 94 m. Miljo is specialized in development of electric vehicles and is based in Norway. Miljo will produce electric vehicles based on Tata Motors' products. The company will also help in manufacturing super polymer lithium ion batteries and the development of related technologies. This move will help Tata Motors in developing convenient, affordable and sustainable mobility solutions through electric and hybrid vehicles. The stock of Tata Motors ended 1%lower.

As per leading business daily Cadila Healthcare product - Lyssavac N (a rabies vaccine) has been approved by the World Health Organisation (WHO) for purchase by various agencies of United Nations. At present, Cadila is marketing this drug under the brand name of Vaxirab in domestic market and is exporting to countries in South Asia and Africa. The company manufactures 3 m doses of the rabies vaccine in the country at its facility at Ahmedabad. This approval will open new avenues for the company in generating higher revenues. Pharma stocks ended firm led by Glenmark Pharmaceuticals (up 14%) and Sun Pharma (up 8%). The stock of Cadila Healthcare closed marginally higher.