12:59 pm Market Update:
Equity benchmarks continued to see buying interest in afternoon trade, led by pharma stocks. The Sensex climbed 142.32 points to 27973.86 and the Nifty rose 38 points to 8504.55.
About 1402 shares have advanced, 1199 shares declined, and 109 shares are unchanged on the BSE.
12:40 pm Buzzing: Sharon Bio Medicine gained another 18 percent (in addition to 20 percent upside in previous session) after the US drug regulator audited company’s formulation plant in Uttarakhand.
“In last week, the formulation plant at Dehradun in Uttarakhand has been inspected and audited by officials of US Food and Drug Administration (USFDA),” said the drug maker in its filing.
It was the company’s second plant inspected and audited by USFDA officials in the last 2 months.
The US drug regulator had inspected and audited its Navi Mumbai plant (the first plant) in the first week of July 2015.
Sharon Bio said, “We hope to add active pharma ingredient and formulation sales to USA apart from many European and other countries in near future.”
12:20 pm RComm in news: CITIC Telecom revives talks to buy out Reliance Communications undersea cable business GCX, reports CNBC-TV18 quoting sources
Earlier CITIC had pulled out of the race on valuation concerns for the business, which was pegged at Rs 6000 crore. Currently, both the companies are negotiating the valuation of business. Sources says it could be valued be around Rs 2000 crore but nothing has been confirmed yet.
On the other hand, RCom has also been trying to bring down its debt and is looking at selling its stake in the tower business and DTH business. It has plans pare debt down to Rs 22000 crore in next one year.
For the tower business, so far only ATC seems to be interested while other private equity players have backed out. As far as DTH business they do not plan to fully exit it, so have invited players to buy around 50-60 percent of the business. So far no players have put in a bid for it, say sources.
12:00 pm Market Check
The market gained strength in noon trade with the Nifty climbing above 8500, supported by healthcare, FMCG, auto and select technology stocks. The broader markets performed largely in line with frontliners.
The Sensex advanced 166.81 points to 27998.35 and the Nifty rose 44.75 points to 8511.30. About 1434 shares have advanced, 1039 shares declined, and 113 shares are unchanged on the BSE.
The rupee also recovered from day’s low, up 10 paise to 65.21 a dollar. In Asia, China’s Shanghai recouped losses, up 1.4 percent against 5 percent fall in morning session. However, Hang Seng and Nikkei were down 0.8-1.6 percent..
Jaypee Infratech gained 5.6 percent after the the environment minister Prakash Javadekar confirmed the limitation of the eco-sensitive zone around Okhla Bird Sanctuary. According to JP Morgan, the company has a large 1150 acre project where deliveries can finally commence.
Sun Pharma topped the buying list on Sensex, up 4 percent. Infosys rallied 1.8 percent on getting order from Fidelity Bank Of Nigeria. However, Hindalco plunged 2.5 percent.