Home / Business / Money / Nifty holds 8550 amid consolidation; Lupin, BPCL gainers

Nifty holds 8550 amid consolidation; Lupin, BPCL gainers


The News International Team

01:40pm Market Update: Equity benchmarks came off day’s high amid consolidation due to fall in banks while the broader markets extended decline in afternoon trade.

The Sensex rose 3.79 points to 28195.81 and the Nifty advanced 2.25 points to 8553.15 whereas the BSE Midcap and Smallcap indices declined 0.5 percent each.

About 970 shares have advanced, 1666 shares declined, and 180 shares are unchanged on the BSE.

01:25pm Sun-Ranbaxy in focus: Sun Pharmaceutical Industries has received RBI nod for transfer of overseas investments of Ranbaxy to it and issue its shares to the non-resident shareholders of the latter as part of their USD 4-billion merger deal.

In a filing to the BSE, Ranbaxy Laboratories said Reserve Bank of India on Monday gave approval for transfer of overseas investments held by Ranbaxy in its joint venture and wholly owned subsidiaries to Sun Pharma, pursuant to the proposed merger of Ranbaxy with Sun Pharma through a Scheme of Arrangement.

The central bank also approved issue of equity shares of Sun Pharma to the non-resident holders of equity shares of Ranbaxy Laboratories, the filing added.

The two firms have received nod from the Competition Commission for sale of seven brands to Emcure Pharma to comply with the fair trade watchdog’s conditional nod for their merger.

01:00pm Market Check:

The market continued to see buying interest in afternoon trade. The Sensex advanced 99.74 points to 28291.76 and the Nifty gained 29.90 points at 8580.80 led by HDFC group, pharma, telecom and select technology stocks.

However, the broader markets fell 0.2 percent as declining shares outnumbered advancing ones by a ratio of 1484 to 1070 on the Bombay Stock Exchange.

Lupin and BPCL topped the buying list in Nifty, up 3.5 percent followed by Bharti Airtel, Mahindra & Mahindra and HDFC with 2-3 percent upside.

Sun Pharma and Ranbaxy Labs gained more than 1.5 percent each after CCI approved their plan to divest all 7 brands to Emcure Pharma. Shasun Pharma and Strides Arcolab gained 4-5 percent after the CCI gave its approval to the proposed merger between the 2 pharma companies. Dr Reddy’s Labs advanced 1 percent on agreement with Hetro to accelerate access to hepatitis C treatment. However, Aarti Drugs tanked 9 percent after the US Food and Drug Administration (USFDA) issued an import alert on company’s Palghar unit in Maharashtra.

Maruti Suzuki climhed 1 percent after CLSA reiterated buy on the stock with a target price of Rs 4400. The brokerage believes that improving acceptability of Maruti’s brand at higher price-points mitigates the risk to its franchise from an inevitable shift in demand profile to higher-priced segments. This warrants higher valuation multiples for Maruti’s stock, it adds.

However, Tata Motors, SBI, HUL, Hero Motocorp, Hindalco and Tata Steel fell more than 1 percent.


Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...