Market provisionally settled with small losses. The barometer index, the S&P BSE Sensex fell 30.47 points or 0.09% at 32,370.04, as per the provisional closing data. The Nifty 50 index lost 19.95 points or 0.2% at 10,121.20, as per the provisional closing data. Market participants lacked strong buying conviction amid subdued trading on Asian bourses after the outcome of the Federal Reserve meeting.
Pharma stocks surged as rupee weakened against the dollar. Dr Reddy's Laboratories surged after the company said that the audit of its Custom Pharmaceutical Services (CPS) facility, Technology Development Centre (TDC-1) at Miyapur, Hyderabad, Telangana, by the United States Food & Drug Administration (USFDA) has been completed today, 21 September 2017, with zero observations.
Key indices opened the session with small gains. Later, they slipped into the negative zone tracking subdued trading in Asian bourses and traded with modest losses till mid-afternoon trade. Indices trimmed intraday losses in late trade.
The Sensex lost 236.09 points or 0.72% at the day's low of 32,164.42 in morning trade, its lowest level since 15 September 2017. It rose 62.10 points or 0.19% at the day's high of 32,462.61 in early trade. The Nifty lost 82.55 points or 0.81% at the day's low of 10,058.60 in morning trade, its lowest level since 15 September 2017. It rose 17.75 points or 0.17% at the day's high of 10,158.90 in early trade.
The S&P BSE Mid-Cap index provisionally fell 0.34%. The S&P BSE Small-Cap index provisionally lost 0.51%. The losses in both the indices were higher than the Sensex's slide in percentage terms.
The breadth, indicating the overall health of the market, was weak. On the BSE, 1,554 shares declined and 1,002 shares advanced. A total of 159 shares were unchanged.
The total turnover on BSE amounted to Rs 4208.81 crore, lower than turnover of Rs 5069.38 crore registered during the previous trading session.
Pharma stocks surged as rupee weakened against the dollar. Glenmark Pharmaceuticals (up 2.88%), Lupin (up 2.97%), Cipla (up 4.1%), Divi's Laboratories (up 5.46%), Cadila Healthcare (up 3.38%), Sun Pharmaceutical Industries (up 2.68%) and Aurobindo Pharma (up 0.83%) edged higher. Strides Shasun (down 1.83%) declined. A weak rupee boosts the value of overseas earnings in local terms. Pharma companies derive substantial revenue from exports.
In the foreign exchange market, the partially convertible rupee was hovering at 64.74, compared with its close of 64.27 during the previous trading session.
Dr Reddy's Laboratories surged 7.57% at Rs 2,488.80 after the company said that the audit of its Custom Pharmaceutical Services (CPS) facility, Technology Development Centre (TDC-1) at Miyapur, Hyderabad, Telangana, by the United States Food & Drug Administration (USFDA) has been completed today, 21 September 2017, with zero observations. The announcement was made during market hours today, 21 September 2017.
Separately, Dr Reddy's Laboratories said that it has received an Establishment Inspection Report from the US drug regulator, for its Formulation Srikakulam Plant (SEZ) Unit II, Andhra Pradesh. The announcement was made during market hours today, 21 September 2017.
Overseas, Europe stocks edged higher and Asian stocks were mixed after the Federal Reserve announced a plan to begin unwinding its balance sheet and signaled one more interest rate hike for this year.
In the economic news, European Central Bank (ECB) in its economic bulletin released today, 21 September 2017 said that Eurozone economic growth is gaining momentum and the rapid fall in the unemployment rate is encouraging but inflation has yet to show convincing signs of a sustained upward trend, requiring continued stimulus.
The Bank of Japan (BOJ), at the conclusion of its two-day monetary policy meeting today, 21 September 2017, kept monetary policy steady. In a widely expected move, the BOJ maintained the 0.1% interest it charges on a portion of excess reserves that financial institutions park at the central bank. The central bank also kept its yield target for 10-year Japanese government bonds around 0%. The decision was made by an eight-to-one vote.
US stocks closed at record highs yesterday, 20 September 2017, after the Federal Reserve indicated another rate hike this year was possible and that it would begin the unwinding of its balance sheet next month.
US central bank, at the conclusion of its two-day monetary policy meet yesterday, 20 September 2017, left rates unchanged. Fed stated that it will begin in October rolling off its $4.5 trillion balance sheet, most of which consists of the Treasuries and mortgage-backed securities.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)