The News International Team
09:45am Ranbaxy in News
The BSE Sensex rose 65 points to 26414 while Ranbaxy Laboratories gained 1 percent.
The company has settled the litigation concerning its participation in the Texas Medicaid Program. Under the settlement agreement, Ranbaxy will make payments to the State of Texas totaling USD 39.75 million in a series of tranches through August 2015, said the company in its filing to BSE.
“The claims at issue related exclusively to the manner in which the Ranbaxy has historically reported pricing data to Texas Medicaid for certain of its drugs. As has been widely reported, the State of Texas has brought nearly identical claims against virtually every other major pharmaceutical manufacturer in the United States. Ranbaxy believes that it fully complied with all relevant laws, however the company settled the matter to avoid any further distraction and uncertainty of continued litigation with the State of Texas,” it explained.
09:35am Market Expert
With domestic cues positively stacked in favour of India, market expert Ambareesh Baliga believes 7800-7850 to be good support levels. He doesn’t see it breaking in a hurry.
However, he adds, global cues continue to be tricky, and hence he prefers neither to be a buyer nor a seller at the moment.
He says if 7850 breaks, then the downside for Nifty opens. Because of technical factors, market can crack further and the next level will be 7400. But if Nifty doesn’t fall below 7800 level then the trading band will be 7800-8200.
Baliga says the results so far have been decent but most investors are making the mistake of buying these stocks at high prices (on exuberance) as soon as the results are out. He advices investors to let prices cool from the initial exuberance and then buy.
09:15am Market Check
Equity benchmarks opened flat despite weak global cues and ahead of outcome of Maharashtra and Haryana elections that will be on Sunday. The Sensex fell 1.37 points to 26347.96 and the Nifty declined 0.65 points to 7863.35.
About 432 shares have advanced, 530 shares declined, and 47 shares are unchanged.
DLF shot up 6.62 percent, showing a smart recovery after losing nearly 30 percent in previous session due to Sebi order.
Hero Motocorp and TCS gained nearly 2 percent ahead of second quarter earnings today later in the day. Tata Motors, BHEL and Tata Steel climbed over 1.5 percent.
However, Hindalco, Bajaj Auto (post 29 percent fall in Q2 profit), Reliance Industries, Sesa Sterlite, Tata Power and Cairn India lost 1-2.5 percent.
The Indian rupee opened marginally lower on Thursday at 61.48 per dollar compared to 61.41 a dollar in previous session.
Dollar hits a three-week low against the euro and a more than one-month low against the yen post weak US economic data that heightened concerns that the federal reserve would delay its first rate hike.
Mohan Shenoi of Kotak Mahindra Bank said, “Dollar weakness against global majors may not impact rupee significantly due to reduced custodial flows. The rupee is expected to trade today in a range of Rs 61.10-61.50/dollar.”
On the global front, Asian markets (barring Shanghai) were trading lower with the Nikkei falling over 2 percent. US stocks closed down but recovered significantly from historic intraday losses amid concerns about Europe, Ebola and the economy. Stocks lost nearly 3 percent during the day but recovered in the close.
In Europe, stocks closed more than 2 percent lower as investors shunned risky assets on fears of crumbling global growth, weak economic data, and concerns about the political situation in Greece.
In commodities, Brent crude continues its slump, slips below USD 84 per barrel.