The Indian benchmark indices, Sensex and NSE-Nifty advanced for fifth day in a row after international credit rating agency Moody's upgraded India's sovereign ratings outlook to 'positive' from stable'. Reacting to this development, the banking stocks were in high demand. Majority of the other sectoral indices were trading in the green. However, Healthcare, Realty and capital goods witnessed maximum selling pressure. Nifty closed today's session with a gain of 0.7% or 63 points while Sensex closed today's session with a profit of 0.62% or 178 points. S&P BSE Midcap and S&P BSE Smallcap ended the volatile session with 0.25% and 0.71% gains, respectively.
As regards global markets, most other Asian indices closed lower today while European indices have opened in the positive. The rupee was placed at Rs 62.44 to the dollar at the time of writing.
Healthcare stocks languished in the red today with Biocon Ltd and Wockhardt Ltd being the leading losers. According to a leading financial daily, Drugmaker Cipla has entered into an agreement to acquire 100% stake in Brazil's Duomed Produtos Farmaceuticos Ltda, for about Rs 260 m. The acquisition is part of Cipla's front-end strategy and will expedite its product registrations in Brazil, it said, adding that the transaction was expected to be completed by the end of May 2015. Through its UK-based wholly-owned subsidiary, Cipla (EU) Ltd, the company inked the agreement with the limited liability company in Brazil for a cash consideration of Brazilian Real (R$) 12.9 million.
A sell-off was observed in the auto sector with Escorts and Eicher Motors bearing most of the brunt. According to a leading financial daily, Mahindra & Mahindra (M&M) has acquired 450 acres land at Cheyyarin Thiruvannamalai district in Tamil Nadu to set up a greenfield automobile plant. The company would invest about Rs 40 bn in this plant in two phases. The company will be setting up a test track in the Phase-I, followed an automotive plant. The government will be signing a memorandum of understanding with the company during the forthcoming Global Investors' Meet scheduled on May 23 and 24. The scrip of M&M ended the day higher by 0.75% on the BSE.