Benchmark indices pared gains in morning trade. Pharma stocks were in demand while FMCG shares declined. At 10:28 IST, the barometer index, the S&P BSE Sensex, was up 47.73 points or 0.12% at 39,027.58. The Nifty 50 index rose 37.15 points or 0.32% at 11,553.35.
The broader market was trading firm. The S&P BSE Mid-Cap index was up 0.73%. The S&P BSE Small-Cap index was up 0.47%.
The market breadth was strong. On the BSE, 1281 shares rose and 846 shares fell. A total of 157 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 249.82 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,067.83 crore in the Indian equity market on 17 September, provisional data showed.
Total COVID-19 confirmed cases worldwide stood at 30,071,314 with 9,44,887 deaths. India reported 10,17,754 active cases of COVID-19 infection and 84,372 deaths while 41,12,551 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
The Reserve Bank has decided to conduct purchase of Government securities under Open Market Operations (OMOs) for an aggregate amount of Rs 10,000 crore on 24 September 2020. Accordingly, RBI will purchase Government securities through a multi-security auction using the multiple price method. These include 6.97% GS 2026, 6.45% GS 2029 and 6.68% GS 2031 for Rs 10000 crores. The Reserve Bank reserves the right to decide on the quantum of purchase of individual securities.
The Nifty Pharma index soared 3.82% to 12,184.05. The index has surged 8.46% in four sessions.
Cipla (up 5.89%), Lupin (up 5.29%), Divi's Laboratories (up 3.7%), Sun Pharmaceutical (up 3.03%), Cadila Healthcare (up 2.87%), Aurobindo Pharma (up 2.58%), Alkem Laboratories (up 2.27%), Torrent Pharmaceutical (up 1.66%) and Biocon (up 1.04%) were top gainers in pharmaceutical space.
Dr. Reddy's Laboratories surged 5%. The pharma major announced settlement of U.S. Revlimid (lenalidomide) Capsules patent litigation with Celgene. In settlement of all outstanding claims in the litigation, Celgene has agreed to provide Dr. Reddy's with a license to sell volume-limited amounts of generic lenalidomide capsules in the U.S. beginning on a confidential date after March 2022 subject to regulatory approval. The agreed-upon percentages are confidential. Dr. Reddy's is also licensed to sell generic lenalidomide capsules in the U.S. without volume limitation beginning on January 31, 2026. Revlimid is a trademark of Celgene, a wholly owned subsidiary of Bristol Myers Squibb.
Stocks in Spotlight:
Hindustan Zinc rose 1.46% to Rs 219.20 after the company proposed to raise Rs 4000 crore by offering debentures in one or more tranches. The company proposes to offer Rated, Unsecured, Redeemable, Non-Cumulative, Non-Convertible Debentures aggregating upto Rs 4,000 crore in one or more tranches, and in this regard is holding a meeting of its duly constituted Committee of the Directors on 22 September 2020.
Sterling and Wilson Solar (SWSL) spurted 5.03% to Rs 235 after the company announced that it has signed an order of 106.71 MW worth about Rs 462 crore in Chile. The order has been received from a global independent power producer (IPP), work for which is expected to begin in Q4 FY 2021. SWSL has a strong presence in the region with one project of 93.3 MW in Argentina and three projects of 588 MW under construction in Chile.
TVS Motor Company rose 1.27% after the two wheeler maker on Thursday announced its new distribution partnership with Autotecnica Colombiana SAS (Auteco SAS), a leading motorcycle assembler in Colombia. Auteco SAS will operate 50 dealerships exclusive to TVS Motor Company and create dedicated space for the brand in over 600 retail outlets. Auteco SAS will support TVS Motor with dedicated sales, service, spares and customer relationship management (CRM). It will also provide the brand with an assembly set-up in Cartagena along with a dedicated training centre.