After starting the day on a weak note, Indian stocks gained momentum post noon as buying activity intensified till the end. The BSE-Sensex ended the day higher by about 116 points or 0.43%, while the NSE-Nifty ended lower by about 0.3% or 25 points. Stocks from the consumer durables and FMCG spaces were amongst the top performers today, while those from the realty and metal sectors were amongst the top underperformers. Mid and smallcap stocks seemed to be in favour today as well with the BSE Mid Cap and BSE Small Cap indices ended the day higher by about 0.2% and 0.5% respectively.
Stock markets in other parts of Asia ended the day on a weak note today with Hong Kong and China closing lower by about 1.5% and 1.7% respectively. European stocks were trading weak at the time of writing. The rupee was trading at Rs 60.79 to the dollar at the time of writing.
healthcare stocks ended the day on a weak note with Aurobindo Pharma, Ranbaxy Laboratories and Cipla leading the pack of losers. The stock of IPCA Laboratories ended the day on a firm note despite news of Health Canada asking the company to stop shipments to the country. Taking a precautionary step, the Canadian pharmaceutical regulator has asked the company to do so on a review of inspection report made by the US FDA. It may be noted that the latter had issued 483s as the US regulators had made some negative observations. While this event may not impact revenues significantly, it is a negative development for the company as receiving such a notice from other regulators indicates that the things could be worse than initially anticipated.
Stocks from the capital goods space ended the day on a weak note with Suzlon Energy, Sadbhav Engineering and BHEL leading the pack of losers today. The stock of Suzlon Energy ended the day lower by about 10%. It may be noted that the stock had fallen by 10% on Friday i.e. the preceding trading session as well. Losses in the stock are believed to be a result of shares - allotted to foreign currency convertible bond holders - getting listed on the exchange recently. As reported by a leading business daily, the company had issued 270 m shares at Rs 15.46 per share to FCCB holds under a restructuring agreement. The stock of Suzlon Energy has infact been quite volatile in the recent past. From a price of Rs 11.1 at the end of FY14 i.e. 31st March 2014, the stock touched a high of Rs 36.75 in mid June this year. Currently, the stock is trading at levels of Rs 18.35, half its 52-week high figure.