Paring losses, the Indian benchmark indices reclaimed their higher levels and closed the day with a positive bias. The equity benchmark indices recouped losses in the afternoon trade and closed on a firm note. Few blue chip companies declaring strong earnings results also provided a boost to the market sentiments. While stocks from capital goods and IT sectors suffered maximum selling pressures, all the other sectoral indices have closed on a strong note. Both the BSE Mid Cap and the BSE Small Cap indices gathered steam and were up by 0.41% and 0.02% respectively. The BSE Sensex closed higher by 96 points. The NSE-Nifty too was seen up by 43 points.
On the global front, the Asian indices have closed the day on a mixed note. However, the European indices have witnessed a poor performance. The rupee was trading at Rs 60.17 to the dollar at the time of writing.
Barring few such as Dishman Pharma, Elder Pharma and Ranbaxy Labs, pharma stocks today have closed the day on a firm note. Stocks like Indoco Remedies and Lupin Ltd have outperformed and lead the pack of gainers. According to a leading daily, India's fourth largest drugmaker by sales, Lupin Ltd has declared its 1QFY15 earnings. The company has reported higher profits of 56% YoY during 1QFY15; primarily on the back of higher sales in the United States and India, and lower expenses. The net income for the quarter ended June 2014 has been reported at Rs 6.25 bn (US $103.92 million), as against Rs 4.01 bn a year ago. The net sales have gone up by 36% YoY to Rs 32.8 bn. The company amongst few others is also planning to bid for a portfolio of older drugs being auctioned by Britain's GlaxoSmithKline. As cited by the management, the company is keen upon acquisitions to expand its branded generics business in the United States.
Barring few such as United Bank of India, Syndicate Bank and Bank of India, most of the other PSU banks have closed the day on a firm note. Stocks of PNB and Bank of Baroda have closed the day on a higher note. As per a leading financial daily, one of the five associate banks of the country's largest lender State Bank of India (SBI) is set to merge with the parent this fiscal. State Bank of Patiala is the most likely of the associates to get merged. The public sector bank SBI has five associates -- State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad. While gradually all the five associate banks are expected to merge with the parent, one would come up this year followed by the other next year. To ensure smooth transition, the government is expected to opt for one bank at a time. The total employee staff of the five associate banks of SBI put together stands around 75,000. With each having different work culture, the merger is not an easy task. The stock of SBI has closed down by 0.8% today.