The Indian indices shot up on Wednesday tracking a strong rally in equity markets across the globe. Sentiment got a boost after US home sales data supported the consensus view that the economy may be strong enough for the Federal Reserve to raise interest rates in the coming months. Besides, hopes of above normal rains in the upcoming monsoon season kept the sentiment high too. Nifty closed with again of 186 points at 7,935 while Sensex ended with again of 576 points at 25,881.

Buying activity was witnessed across majority of the pharma stocks with Indoco Remedies and Torrent Pharmaleading the gains. Shares of Dr. Reddy’s Laboratories finished the trading day on an optimistic note (up 1.3%) after it was reported that the company has entered into the branded consumer health arena through the acquisition of six over-the-counter (OTC) brands from Ducere Pharma, including Doan’s, Bufferins, Nupercainal Ointment, Cruex Nail Gel, Comtrex and Myoflex.

These legacy products enjoy strong brand equity built over several decades. The company is extremely excited to be entering the branded consumer health arena through these brands and embarking upon the next avenue of growth for our OTC business in the US.

Recently, the Indian Health Ministry announced a ban on 344 fixed dosage combination (FDC) drugs. The ban came after an expert committee’s recommendation. Pharma companies will have to suspend the manufacturing and sale of drugs that fall into this category, including cough syrups, analgesics, and antibiotic combinations. In a recent edition of The 5 Minute WrapUp Premium, we explained how FDCs pose a new challenge for the pharma companies(Subscription Required).

Moving on to news from the engineering sector. As per a leading financial daily, Bharat Heavy Electricals(BHEL) has successfully commissioned the first 800 MW Supercritical thermal unit in Karnataka, which is also the highest rating unit in the state. The unit has been commissioned at the 2×800 MW Yeramarus Thermal Power Station (TPS) located in Raichur district of Karnataka. Yeramarus is being developed by Raichur Power Corporation (RPCL) – a Joint Venture of Karnataka Power Corporation (KPCL) and BHEL.

The second unit of this project is also in an advanced stage of construction and is expected to be commissioned shortly. BHEL’s scope of work for the project includes design, engineering, manufacture, supply, erection and commissioning of state-of-the-art supercritical Boiler and Turbine Generators along with associated civil works and agreed Balance of Plant packages.

Engineering stocks finished the day on a positive note with L&T and BHEL leading the gains.

USDINR trade today trading up 15 paise at 67.31 per US dollar.

Out of 1,812 stocks traded on the NSE, 1046 declined and 503 advanced today.

Top 5 Nifty Gainers: L&T (9.50%), BHEL (1.71%), GAIL (1.63%), ONGC (1.38%) and Hero Motocorp (1.90%).

Top 5 Nifty Losers: Sun Pharma (-1.42%), NTPC (-1.41%), SBI (-0.71%), Cipla (-0.49%) and TCS (-0.46%)

To qualify NCFM Capital Market Dealers Module certification examination, register with Intelivisto.com and buy Capital Market comprehensive question bank which features mock test, chapter-wise and full length test as per NCFM standards. It also includes performance analysis tools to analyze the performance. For more information call on: +91-9582000102.

The Indian equity market ended near day’s high on Tuesday snapping a four day losing streak amid a highly lackluster day. The session was so dull that NSE Nifty index was stuck in a mere 40 points range while BSE Sensex was trapped in a 160 points range. Nifty closed with again of 18 points at 7,749 while Sensex ended with again of 75 points at 25,305.

Asian markets finished mixed as of the most recent closing prices with Japanese shares dropping amid renewed strength in yen as fresh data showed the country’s exports continued to fall. The Nikkei 225 & the Hang Seng fell 0.49% and 0.22% respectively while the Shanghai Composite gained 0.64%. European markets are lower today with shares in France off the most. The CAC 40 is down 0.29% while London’s FTSE 100 is off 0.10% and Germany’s DAX is lower by 0.09%.

A report by State Bank of India(SBI) highlighted that credit growth in India is unlikely to revive materially in near term as demand conditions are still acting as a drag. The report offered that it is too early and premature to conclude about the credit growth picking up in the country.

During the fiscal 2015-16, credit growth witnessed some improvement and stood at 11.3% as on March 18, 2016. However, come April 29 this year, credit off-take declined to 9.2%.

The report also stated that the supposed correlation between balance sheet cleaning and credit growth picking up will only happen once the growth cycle picks up significantly.

To aid credit growth, the Reserve Bank of India (RBI) has cut interest rates by 1.5% so far. However, the transmission of rates by banks has been much lower. Hopefully, with the marginal cost of funds based lending rate that came into effect from April 2016, banks are now in a better position to pass on the rate-cuts. However, more than this, the revival in the broad economy will play a key role in bringing about a more sustainable recovery in credit demand.

Engineering stocks are trading on a mixed note with Welspun Corp and Jyoti Structure leading the losses. In another news update it was reported that L&T Infotech, an arm of engineering giant Larsen and Toubro (L&T), has received approval from the SEBI for its proposed initial public offering (IPO).

The company had filed its draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI) in April. SEBI approved its final observations on the draft offer documents on May 20, which is necessary for any company to launch a public offer.

The company’s IPO comprises an offer-for-sale of up to 17,500,000 equity shares of the subsidiary by L&T. The issue is being managed by Kotak Mahindra Capital Company, Citigroup Global Markets India and ICICI Securities.

USDINR trade today tradingdown 15 paise at 67.63 per US dollar.

Out of 1,812 stocks traded on the NSE, 1046 declined and 503 advanced today.

Top 5 Nifty Gainers: ICICI Bank (2.50%), Asian Paints (2.07%), Infosys Ltd (1.98%), Tata Motors (1.91%) and Axis Bank (1.90%).

Top 5 Nifty Losers: Cipla (-6.73%)

To qualify NCFM Capital Market Dealers Module certification examination, register with Intelivisto.com and buy Capital Market comprehensive question bank which features mock test, chapter-wise and full length test as per NCFM standards. It also includes performance analysis tools to analyze the performance. For more information call on: +91-9582000102.

Indian indices once again ended in the red extending its losing streak to fourth consecutive trading session. Equity market in India did start off on a promising note tracking overnight gains in the US markets, however it was short lived as indices lost ground gradually. Today’s decline was led by the health care, capital goods, realty and banking stocks. Even the mid cap and small cap stocks ended with marginal losses. On the other hand, FMCG, telecom, power and utilities ended with smart gains. Nifty closed with a loss of 19 points at 7,731 while Sensex ended with a loss of 72 points at 25,230.

Asian markets finished mixed as of the most recent closing prices with Japanese shares dropping amid renewed strength in yen as fresh data showed the country’s exports continued to fall. The Nikkei 225 & the Hang Seng fell 0.49% and 0.22% respectively while the Shanghai Composite gained 0.64%. European markets are lower today with shares in France off the most. The CAC 40 is down 0.29% while London’s FTSE 100 is off 0.10% and Germany’s DAX is lower by 0.09%.

Shares of Oil and Natural Gas Corporation (ONGC) plunged more than 2% today after it was reported that the company is facing a repeat of the Krishna Godavari (KG) basin fiasco in Iran. ONGC alleges that 11.12 billion cubic meters of natural gas worth Rs 110.55 billion has flowed from its idling KG basin blocks in Bay of Bengal blocks to neighboring KG-D6 fields of Reliance Industries. The same is now on the verge of repeating in the Farzad-B field with Saudi Arabia in the Persian Gulf, which it had discovered in 2008 but no contract to exploit the 12.5 trillion cubic feet (Tcf) of recoverable reserves has so far been concluded with Iran.

Reportedly, a portion of Farzad-B field extends into territorial waters controlled by Saudi Arabia. Saudi Arabia has already drilled wells on the area falling in its territory, which it has named Hasbah field, and has begun production. The two fields are connected, with the area falling in Iranian territory holding larger share of 12.5 Tcf of recoverable reserves while the Saudi territory has only 3 Tcf or so. But the two fields are connected and whosoever is able to movefirst would extract more benefits.

According to the reports, it was expected that Prime Minister Narendra Modi’s visit to Tehran today and tomorrow may see finalizing of a contract, giving developmental rights of Farzad-B field to ONGC Videsh Ltd, the overseas subsidiary of ONGC. But Iran is yet to agree to US$ 4.3 billion development plan submitted by OVL.

Oil and gas stocks languished in red today, with ONGC and HPCL leading the losses.

Moving on to news from mining sector. According to a leading economic daily, Vedanta Resources plans to ramp up aluminum production from Jharsuguda and Korba smelters of Bharat Aluminum Co to 1.5 million tonnes (mt) from 0.9 mt this financial year.

Oil prices slipped in Asian trade on a strong dollar and signs that global crude supply is holding up even as volumes hit by unplanned outages rise to at least 5-year highs.

Shares of Power Grid surged 2.6% to Rs.148 on BSE. The company will replace BHEL in the BSE Sensex index from June 20. Following the development, shares of BHEL slipped 0.6% Rs.118 on BSE.

USDINR trade today trading up 4 paise at 67.40 per US dollar.

Out of 1,394 stocks traded on the NSE, 839 declined and 508 advanced today.

Top 5 Nifty Gainers: NTPC (2.98%), Tata Motors (1.62%), Cipla (1.09%), ICICI Bank (1.06%) and Reliance Ind. (1.05%).

Top 5 Nifty Losers: ONGC (-1.44%), BHEL (-1.35%), Adani Ports & Sez (-1.10%), Sun Pharma (-1.08%) and L&T (-1.03%),

To qualify NCFM Capital Market Dealers Module certification examination, register with Intelivisto.com and buy Capital Market comprehensive question bank which features mock test, chapter-wise and full length test as per NCFM standards. It also includes performance analysis tools to analyze the performance. For more information call on: +91-9582000102.