Sensex, Nifty may try to stage a weak rally: Wednesday closing report

Close above 5,620 on the Nifty maybe the first sign of recovery

Both the Sensex and the Nifty opened marginally higher on Wednesday but soon went in the negative zone where it remained for most of the trading session. However, during the last hour of the trading session, the indices gained some strength but could not sustain and again fell, before closing in the negative. The 30-share Sensex opened at 18,759 and moved in the range of 18,551 and 18,811 to close at 18,665 (down 68 points or 0.36%) while the Nifty-50 opened at 5,549 and moved in the range of 5,487 and 5,561 to close at 5,519 (down 23 points or 0.42%). The National Stock Exchange (NSE) recorded a volume of 73.17 crore shares.
To arrest the weakening of the Indian rupee, policymakers are set to discuss fresh measures. It is reported that it is likely that the borrowing rules maybe relaxed for debt-laden Indian companies including doubling the amount a company can borrow from overseas to $1.5 billion.
Among the major indices on the NSE, Nifty Midcap 50 was the top gainer, rose 1.92% while India Vix fell the most 3.04%.
Among the other indices, Realty (rose 5.58%); PSU Bank (rose 3.76%); Metal (rose 3.16%); Energy (rose 2.88%) and PSE (rose 2.15%) were the top five gainers. While the top five loser were FMCG (fell 1.55%); Auto (fell 1.41%); IT (fell 1.39%); Media (fell 0.85%) and Pharma (fell 0.73%).
Of the 50 stocks on the Nifty, 25 ended in the in the green. The major gainers were Tata Power (up 7.70%); DLF (up 6.79%); BPCL (up 6.12%); NMDC (up 5.43%) and Ranbaxy (up 5.24%). The main losers were Lupin (down 7.26%); HCL Technologies (down 4.67%); HDFC (down 3.46%); Sun Pharma (down 3.01%) and Asian Paints (down 2.82%).
Out of the 27 main sectors tracked by Moneylife(ML), the top three and the bottom three indices were:

US indices fell on Tuesday after Fed Bank of Chicago President Charles Evans, who has been among the strongest proponents of the record monetary accommodation in the US said, he expects the central bank to begin tapering its asset-purchase program by the end of the year. Separately, Atlanta Fed Bank President Dennis Lockhart said tapering of monetary stimulus, or quantitative easing, could be announced at any of this year's remaining policy meetings.  
Data yesterday showed the US trade deficit narrowed more than economists expected in June to the least since October 2009. Separately, job openings rose to 3.94 million in June from 3.91 million in May, the US Department of Labor reported.
Except for Jakarta Composite (rose 0.36%) and Straits Times (rose 0.16%), all other Asian indices closed in the negative. Nikkei 225 lost the most by falling 4%.
European indices were trading in the negative ahead of the release of the Bank of England's inflation report. US Futures indices were trading in the negative.
Tilaknagar Industries, maker of brandy label -- Mansion House -- is engaged in discussions with global giants such as Suntory Holdings and Pernod Ricard to sell 15-20% stake in the company. This is aimed at de-leveraging the company's balance sheet. And the company also has plans for acquiring distilleries as well as regional brands as part of expanding its presence across the country. The stock rose 14.29% to close at Rs54 on the NSE.


Ranbaxy June quarter net loss narrows to Rs608.8 crore

It remains to be seen whether the company can turn itself around after settling issues with the US Department of Justice even as it managed to narrow its net loss in the June quarter

Ranbaxy Laboratories Ltd said its net loss during the first quarter narrowed to Rs608.8 crore on depreciation of Indian rupee and change in accounting standards.

For the quarter to end-June, the drug maker, a unit of Japanese Daiichi Sankyo Co Ltd said its net loss narrowed to Rs608.9 crore from Rs925.7 crore while its total revenues, including sales, declined to Rs1469.9 crore from Rs1587 crore, same period last year.

Arun Sawhney, chief executive and managing director of Ranbaxy, said, “We successfully concluded the previously disclosed investigation by the US Department of Justice (DOJ). With the payment of $500 million provisioned earlier, we have settled both the civil and criminal settlements with the DOJ. This should allow us to focus our resources and energies to drive future growth.”

During the quarter, the drug maker’s revenues from API business increased 31% to Rs226.3 crore driven by focus on select markets and product mix. During the quarter, the company filed one ANDA was filed for the US market.

Sales in north America, during the June quarter, was Rs851.6 million, lower than last year, due to expiry of select exclusivities. However, it has a strong sales base in Absorica. The company says that its market share gain in Absorica, isotretenonin NDA has been promising and it holds a share of 13.7%, overall.

Some key highlights of Ranbaxy products are:

The exclusivity period for Pioglitazone hydrochloride authorised generic came to an end in mid-February 2013 and the company holds a market share of 24%;

Ranbaxy has 43% market share in Cevimeline hydrochloride 30 milligrams capsules in the US market.

Ranbaxy closed Wednesday 4.6% up at Rs281.9 on the BSE, while the 30-share Sensex ended the day marginally down at 18664.9.


Tata Motors Q1 cons net profit falls 23% on poor sales

The company’s overseas division, Jaguar Land Rover, has done exceptionally well, largely thanks to rupee depreciation and higher sales take off leading to an 8% increase in revenues

Tata Motors reported a first quarter consolidated net profit of Rs1,726 crore from Rs2,245 crore despite 8% increase in its revenues mainly due to poor sales in India.


For the quarter to end-June, the automaker said its total revenues, including sales, grew 8% to Rs46,785 crore on consolidated basis. “The business was affected by a weak operating environment in the standalone business, but it was offset by strong demand, growth in volumes, richer product mix and favourable foreign exchange at Jaguar Land Rover (JLR),” the company said in a release.


During the quarter, the Tata group company said its sales, including exports fell 19% to 1.54 lakh units as weak macro-economic environment and competitive pressures on pricing, continued to impact the operations during the quarter.


Jaguar Land Rover has performed well, largely thanks to depreciating rupee. Following strong response to its new products and powertrain options, Jaguar’s wholesales and retail volumes grew 57.8% and 28% to 18,577 units and 17,459 units, respectively during the June quarter.


On Wednesday, Tata Motors ended 2.96% down at Rs278.8 on the BSE, while the benchmark Sensex ended marginally down at 18664.9.


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