Indian markets extended their gains over the second half of the trading session as BSE Sensex gained over 240 points and NSE-Nifty gained over 70 points. During the early trade, markets were suppressed by the fact that core sector growth declined to 1.4%. BSE Mid Cap and BSE Small Cap stocks outperformed the market as midcap companies gained nearly 1% while smallcap gained about 2%. Among the sectoral indices, IT is the only sector trading in the red with losses of about 1.3%. Today's gains are primarily attributable to banks and healthcare sector.
Commodities continue to trade in a flattish tone between small gains and losses. Gold prices, per 10 grams, declined 0.13% or Rs 34 while silver prices, per kilogram, declined 0.12% or Rs 44. While the gold prices are available at Rs 26,170 levels, silver prices are available at Rs 37,125 levels. Crude oil prices extended their sell-off to 2%. Per barrel, the crude oil declined about Rs 60 to Rs 2,965. Crude oil prices fell as nuclear talks with Iran extended beyond the pre-decided deadline. The US dollar against the Indian Rupee remains unchanged at Rs 62.4950.
Metals stocks are trading with moderate gains as stocks gained about 0.4% in today's trading session. However, shares of Tata Steel gained about 0.5% in today's trading session as it divested its 100% Sri Lankan based subsidiary named Lanka Special Steels Limited for a consideration of Rs 200 m. The company had an annual turnover of Rs 740 m. The facility had an installed capacity of 14,400 mta. Business of the company included supplying and manufacturing hot dip galvanized wire and nail.
Pharmaceutical has led today's gains with over 1%. Apart from Dr. Reddy's, Sun Pharma has gained above 4% in today's trade. Shares of Dr. Reddy's gained over 2% after the company revealed that it would be acquiring a selected portfolio of UCB that includes India, Sri Lanka, Maldivies and Nepal. The acquisition is valued to be Rs 8 billion. The selected portfolio of UCB will be sold on a "slump sale basis". It also has about 350 employees working in the company. This acquisition will help Dr. Reddy's leverage its footprint on a global basis and will also help it expand its portfolio of products in the therapeutic areas of dermatology, respiratory and pediatrics among others.