Benchmarks make green start on Friday

Indian equity benchmarks extending their gains have once again made a positive start and are trading slightly in green following the positive global cues. Traders were getting encouragement on reports that Foreign Portfolio Investors (FPI) were the net buyers to the tune of Rs.745.81 crores on July 16, 2015 as per provisional stock exchange data. However, some cautious prevailed after Asian Development Bank (ADB) stated that delay in reforms relating to land acquisition and GST could hamper growth. Furthermore, the southwest monsoon remained 32% below normal in the first 15 days of July, too kept pressuring the sentiments. Some buzz was seen in the power sector after the Cabinet Committee on Economic Affairs (CCEA) approved the creation of a transmission system covering seven states at an estimated cost of Rs 8,548.68 crore.

In scrip specific development, Delta Corp was trading higher after the company posted a consolidated net profit at Rs 10 lakh for the quarter ended June 2015 (Q1) against a loss of Rs 20 crore in the year-ago quarter.

On the global front, the US markets ended higher after fears of a Greek exit from the euro zone subsided and as Federal Reserve Chairwoman Janet Yellen wrapped up her semiannual two-day testimony before Congress.  Asian markets were trading mostly in green, helped by rise in Chinese shares.

Back home traders were piling up position in TECK, IT Healthcare, Consumer Durables and Capital Goods, selling was witnessed in Metal, Bankex, Realty, PSU and Auto. The market breadth on BSE was positive in the ratio of 963: 867, while 79 scrips remained unchanged.

The BSE Sensex is currently trading at 28459.13, up by 13.01 points or 0.05% after trading in a range of 28454.93 and 28576.32. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.18%, while Small cap index was up by 0.32%.

The top gaining sectoral indices on the BSE were TECK up by 0.69%, IT up by 0.66%, Healthcare up by 0. 65%, Consumer Durables up by 0.48% and Capital Goods up by 0.44%, while Metal down by 0.66%, Bankex down by 0.30%, Realty down by 0.16%, PSU down by 0.14% and Auto down by 0.08% were the losing indices on BSE.

The top gainers on the Sensex were Sun Pharma Inds. up by 1.24%, BHEL up by 1.09%, Lupin up by 0.78%, Wipro up by 0.71% and Hero MotoCorp up by 0.58%. On the flip side, HDFC down by 1.48%, Coal India down by 1.34%, Axis Bank down by 0.78%, Tata Motors down by 0.52% and Hindustan Unilever down by 0.31% were the top losers.

Meanwhile, to improve the affordability of medicines in the country, the government has extended price caps to an additional 39 drugs to treat diseases such as diabetes and digestive disorders, under price control. The new price control list includes more than 500 drugs. National Pharmaceutical Pricing Authority (NPPA) said that, “it has revised the prices in respect of 39 formulation packs”. It is notified that, the prices of formulations including Ciprofloxacin Hydrochloride, Cefotaxime, Paracetamol, Domperidone and Metformin+Glimepiride have been fixed.

The latest price control list will be including medicines of foreign drugmakers such as Abbott Laboratories and GlaxoSmithKline Plc and domestic firms such as Lupin, Cadila Healthcare and Ipca. Indian drugmakers have opposed the decision and said that drug prices are already the lowest in the world.

The government has capped prices of essential drugs based on the simple average of all medicines in a particular therapeutic segment with sales of more than 1 %,  whereas, companies are allowed to hike prices by only up to 10% in a year. In May NPPA had extended the price cap of 30 formulation packs, including those used to treat diseases such as tuberculosis, diabetes and asthma. 

The CNX Nifty is currently trading at 8620.65, up by 12.60 points or 0.15% after trading in a range of 8613.95 and 8642.95. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 2.59%, Sun Pharma up by 1.32%, BHEL up by 1.30%, Cipla up by 0.90% and Idea Cellular up by 0.89%. On the flip side, ACC down by 1.29%, Kotak Mahindra Bank down by 1.24%, Yes Bank down by 1.19%, HDFC down by 1.10% and Coal India down by 1.04% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 increased 29.75 points or 0.14% to 20,629.87, Shanghai Composite increased 52.33 points or 1.37% to 3,875.50 and Hang Seng increased 254.07 points or 1.01% to 25,416.85,

On the flip side,  KOSPI Index decreased 15.97 points or 0.76% to 2,071.92 and Taiwan Weighted decreased 4.09 points or 0.05% to 9,038.12.