The News International Team
The market remained in a consolidation more on Wednesday ahead of expiry of derivative contracts of March series. The broader markets too were rangebound but lost ground in last hour of trade.
Equity benchmarks saw fall for the sixth consecutive session today. The 30-share BSE Sensex declined 49.89 points to 28111.83 and the 50-share NSE Nifty lost 12.15 points to 8530.80.
Experts see more correction in medium term but in near term, the Nifty may try to remain in range of 8400-8600.
Pramod Gubbi of Ambit Capital said the brokerage continued to have Sensex target of 34000 by 2015-end. However, it expects more downside to this market in next two quarters and recommended investors to add quality stocks on every correction, he added.
The broader markets too were under pressure. The BSE Midcap and Smallcap indices slipped 0.5-0.7 percent with the market breadth favouring to declines in ratio of 2:1.
PSU banks, capital goods, power and select metals stocks dragged the market. NTPC was the biggest loser on Sensex, down 3.5 percent as brokerage house CLSA said recently allotted mines to company will have limited impact on earnings in the near term. The brokerage has maintained underperform rating on the stock.
Shares of L&T, State Bank of India, Punjab National Bank, ONGC, GAIL, Coal India, Tata Steel, BHEL and Tata Power were down 1-4 percent.
However, Sun Pharma finally completed its merger with Ranbaxy Labs today, becoming the world’s fifth largest generics pharma company with combined revenue of over USD 5 billion. MD Dilip Shanghvi said the group will look at boosting research and development with an investment of more than USD 300 million and Ranbaxy will be delisted soon.
Sun Pharma has fixed April 07. Ranbaxy shareholders will get 8 shares of merged entity for every 10 shares held. Sun gained 1.3 percent and Ranbaxy was up 1.6 percent.
Tata Motors climbed 1.6 percent as its rights issue of Rs 7,500 crore, the third largest issue in recent times, will hit market soon. It offered shareholders 6 shares for every 109 held via a rights issue. Ordinary shares are priced at Rs 450 per share while DVR shares can be bought at Rs 271 apiece.
Cipla has launched generic drug Sofosbuvir in India under the brand name Hepcvir. Following the non-exclusive licensing agreement signed with Gilead Sciences in September last year, to manufacture and market chronic hepatitis C medicines, Cipla is now all set to make the drug Sofosbuvir available to Indian patients in a week’s time. The stock closed flat.
ICICI Bank, Mahindra & Mahindra, Wipro, HCL Technologies, DLF and Cairn India were other gainers, up 1-4 percent.
In the broader space, Ipca Labs tanked 12.55 percent on USFDA import alert for its Pithampur & Silvassa units, which is in addition to import alert imposed on Ratlam facility in January.
SpiceJet was also in focus as the Delhi High Court gave airline time till April 7 to settle the payment dispute with Irish lessor AWAS. The company’s planes will not be deregistered by the DGCA till that date. Sources also told CNBC-TV18 that Qatar Airways have been in talks with SpiceJet as well as Indigo to explore a possible joint venture.
After JSPL, BALCO also moved filed a case in Delhi High Court against the government canceling its bid for the Gare Palma IV/1 block. The company alleged the cancellation is arbitrary and without reason. The Delhi High Court will be hearing the plea tomorrow.
Meanwhile, it was a mixed bag for global markets today. Hong Kong closed higher by 0.5 percent while Shanghai saw losses of 0.8 percent, breaking its ten-day winning streak. European markets were marginally in the red ahead of the German IFO data.