Nifty may stage a slow recovery: Wednesday Closing Report

If today’s lows hold, the Nifty may see a short rally

A weak rupee and dismal global cues pushed the markets lower today. If today's lows hold, we may see a small bounce-back. Today the Sensex hit a high of 16,133, the lowest since 10 January 2012 while it went down to the level of 15,975, its lowest since 13 January 2012. The National Stock Exchange (NSE) saw a volume of 64.55 crore shares which is above its 10 day moving average.  

The market opened sharply lower on weak global cues and the depreciating rupee, which hit a fresh five-month low. The inability of Greece to form a government led to fears of the beleaguered nation discarding the euro, thus worsening the Eurozone crisis. The development led the US markets lower overnight, which also had a bearing on the Asian back that were trading lower in morning trade today.

Back home, the Nifty opened 108 points down at 4,875 and the Sensex tanked 195 to resume trade at 16,133. Meanwhile, the rupee fell to a five-month low losing 47 paise to 54.26 against the US dollar on the Interbank Foreign Exchange market in early trade on increased capital outflows amid strong demand for the greenback. The rupee had touched a record intra-day low of 54.32 on 15 December 2011.

While the opening figure on the Sensex was its intraday high, the Nifty hit this level in a short time with the index touching 4,882. Across-the-board selling saw all sectoral indices in the negative. The market, which witnessed a gap-down opening, was range-bound in subsequent trade.

Concerns of a slowdown in economic growth and a lower opening of the European markets resulted in the benchmarks falling to their mid-session lows in noon trade. At the lows, the Nifty fell to 4,837 and the Sensex fell below its psychological level to 15,975.

Trade continued to be lacklustre in the late session as global cues and the weakening rupee thwarted any recovery attempt. At the close, the Nifty declined 85 points (1.71%) to 4,858 and the Sensex closed 298 points (1.83%) lower at 16,030.

The advance-decline ratio on the NSE was negative at 444:1209.

Among the broader markets, the BSE Mid-cap index declined 0.78% and the BSE Small-cap index dropped 1.11%.

All sectoral indices settled lower. The key losers were BSE Metal (down 2.68%); BSE Auto 2.59%); BSE Consumer Durables (down 1.94%); BSE Capital Goods (down 1.69%) and BSE Bankex (down 1.65%).

Sterlite Industries (up 0.87%) and Bajaj Auto (up 0.47%) were the only gainers on the Sensex. The top losers were Tata Motors (down 7.34%); Tata Steel (down 3.89%); BHEL (down 3.74%); HDFC (down 3.71%) and Hindalco Industries (down3.28%).

The Nifty was led by BPCL (up 2.53%); Power Grid Corporation (up 1.65%); Cairn India (up 1.30%); Bajaj Auto (up 1.08%) and Kotak Mahindra Bank (up 1.02%). Tata Motors (down 7.70%); Tata Steel (down 4.40%); SAIL (down 4.18%); Reliance Infrastructure (down 3.73%) and Jaiprakash Associates (down 3.59%) settled lower on the index.

Markets in Asia settled lower on concerns about the Greek crisis and a tepid loan growth in China's top four state-controlled banks in the first half of this month. The global developments are seen dampening overseas investors' appetite in the region.

The Shanghai Composite declined 1.21%; the Hang Seng tumbled 3.06%; the Jakarta Composite dropped 1.61%, the KLSE Composite fell by 1.60%; the Nikkei 225 fell by 1.12%; the Straits Times slipped 1.58%; the KOSPI Composite tumbled 3.08% and the Taiwan Weighted settled 2.18% lower.

At the time of writing, the key European indices were mostly lower while the US stock futures were in the positive.

Back home, institutional investors-both foreign and domestic-were net sellers in the equities segment on Tuesday. Foreign institutional investors were pulled out Rs184.28 crore and domestic institutional investors withdrew Rs82.85 crore.

Diversified business house Videocon Industries said it will raise $51.02 million (over Rs270 crore) through issue of securities on a private placement basis from overseas market. In a filing to the BSE, the company said it will issue 1,57,50,000 Global Depository Receipts representing 1,57,50,000 equity shares. The stock gained 0.85% to close at Rs171.50 on the NSE.

Pharma major Aurobindo Pharma on Wednesday stated that it has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Lamivudine and Zidovudine tablets in America. The tablets are the generic equivalent of ViiV Healthcare Company's Combivir tablets and are indicated as part of antiretroviral combination therapy for the treatment of Human Immunodeficiency Virus (HIV) infected persons. Aurobindo declined 0.52% to close at Rs105.55 on the NSE.

Indian Overseas Bank (IOB) is likely to raise $500 million this fiscal to fund its business growth overseas. The funding will be through a Medium Term Note (MTN) programme, which is basically a debt instrument with a maturity of 5-10 years. The stock tumbled 2.37% to settle at Rs78.25 on the NSE.


Bharti Airtel partners with Axis for mobile banking services

Airtel customers will now be able to open no-frills savings account in Axis Bank through their mobiles and can use it for regular banking transactions

Mumbai: Bharti Airtel customers will now be able to open no-frills savings account in Axis Bank through their mobiles and will be able to carry out transactions such as cash deposits, transfers and withdrawals, reports PTI.

Country's largest private mobile operator Bharti Airtel and Axis Bank on Wednesday announced a partnership to provide banking services through Airtel Money platform, a move that will help further the goal of reaching un-banked areas.

"Following the recent pan-India launch of Airtel Money, we are today excited to collaborate with Axis Bank to further strengthen our mCommerce proposition for customers," Bharti Airtel CEO - India and South Asia - Sanjay Kapoor said.

To begin with, savings and remittance solutions will be provided in Delhi and Mumbai on the sending side, and Bihar and East UP on the receiving side.

Thereafter, these services may be extended to other remittance corridors in the country, the company said.

"According to estimates, nearly 43% of the country's population does not have bank accounts...The 'airtel money Super Account powered by Axis Bank' acts as a no-frills bank account that comes with remittance capabilities," Mr Kapoor said.

Leading IT firm Infosys is the technology innovation partner for the offering.

"Our alliance with Airtel will help the Bank to reach out to excluded segments of our population, both in rural and urban centres, with reasonably priced banking and financial services," Axis Bank MD and CEO Shikha Sharma said.


Glenmark gets nod from US for migraine tablets

Glenmark's unit in the US received the FDA approval for generic Zolmitriptan tablets which are used for treating migraines

New Delhi: Glenmark Pharmaceuticals on Wednesday said it has received tentative approval from the US health regulator for generic Zolmitriptan tablets used for treating migraines, reports PTI.

Glenmark Generics Inc, the US subsidiary of Glenmark Generic received tentative approval from US Food and Drug Administration (USFDA) for zolmitriptan orally disintegrating tablets, Glenmark Pharmaceuticals said in a statement. The approval is for zolmitriptan tablets in the strengths of 2.5 mg and 5 mg, Glenmark said.

The tablets are generic version of AstraZeneca's Zomig-ZMT tablets, it added.

Earlier in in September 2011, the company had received tentative approval for immediate release version of zolmitriptan tablets.

"According to IMS Health for the 12 month period ending March 2012, zolmitriptan immediate release tablets and orally disintegrating tablets achieved sales of $131 million and $31 million respectively," Glenmark said.

The company's current portfolio consists of 80 products authorised for distribution in the US and 38 abbreviated new drug applications (ANDA's) pending approval with the USFDA, it added.

Shares of Glenmark Pharmaceuticals were today trading at Rs 355 in the afternoon trade on BSE, down 2.83% from its previous close.


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