In the past one year, the share price of Dr Reddy’s Laboratories slid 3.85 per cent to Rs 3388.60 on November 24. Sensex fell 9.55 per cent during the same period. (Photo: PTI)

Dr Reddy’s share price slumped over 9 per cent intraday on Thursday after the United States Food and Drug Administration (USFDA) warned homegrown pharma major that if the company fails to take corrective actions at three of its manufacturing facilities-Srikakulam, Miryalaguda and Duvvada-it may lead to imposition of an import ban on these units.

The regulator said it had found several violations with regard to current good manufacturing practices (CGMP) at these plants.

The share price of Dr Reddy Laboratories were trading 6.04 per cent down at Rs 3,184.05 in the early trade (9.25 am). The share price of the company opened at Rs 3,049.75 and had touched a high and low of Rs 3,200 and Rs 3,049.75, respectively, in trade. The scrip fell as much as 9.99 per cent intraday so far.

Later, the scrip closed 8.21 per cent down at Rs 3,110.35. Sensex closed 0.71 per cent up at 25,958.63

Market analysts believe warning letter details are stringent in tone and scope. According to CLSA, the content of the warning letter for the three manufacturing sites for Dr Reddy’s is strongly worded and Dr Reddy’s response to the warning letter would be crucial, failing which there could be an adverse action (import alert) for these sites.

Sarabjit Kour Nangra, vice president research, Angel Broking said, “These issues will take some time to get resolved. However, we have already pruned the numbers for worst case scenario coming from these plants. We maintain our ‘Buy’ rating with a price target of Rs 3,933.”

According to Nomura, Dr Reddy’s shares currently trades at 21x FY16F and 18.7x FY17F estimates. The brokerage firm maintains ‘Buy’ rating on the stock with target price of Rs 4,919.

The promoters holding in the company stood at 25.51 per cent while institutions and non-institutions held 41.91 per cent and 32.58 per cent, respectively.

In the past one year, the share price of Dr Reddy’s Laboratories slid 3.85 per cent to Rs 3388.60 on November 24. Sensex fell 9.55 per cent during the same period.

(With inputs from Reuters)

The BSE Sensex and NSE Nifty snapped two day losing streak on Thursday and closed 182.89 points and 52.20 points up at 25,958.63 and 7,883.80, respectively. (Photo: PTI)

3.30 pm: The BSE Sensex and NSE Nifty snapped two day losing streak on Thursday and closed 182.89 points and 52.20 points up at 25,958.63 and 7,883.80, respectively. Benchmark indices rose on hopes that the Parliament would consider a key reform on goods and services tax (GST) and some short coverings also uplift market mood on the last day of F&O expiry.

In the 50-share index, Tata Motors, Sun Pharma, Idea Cellular, GAIL and Reliance Industries gained between 2.35 per cent and 5.50 per cent. On the other hand, Dr Reddy’s, Tech Mahindra, TCS, Adani Ports and Bajaj Auto slid between 0.70 per cent and 8.30 per cent.

Barring the BSE Healthcare index (down 0.53 per cent) and BSE Capital Goods index (down 0.23 per cent), rest all other indices ended in green. The BSE Telecom index and BSE Realty index gained 2.66 per cent and 1.8 per cent, respectively.

Hopes for the GST tax were rising as the idea of setting a relatively low rate for a new Indian sales tax seemed to be gaining traction, as politicians of all stripes met to debate what would be the country’s biggest tax reform since independence.

The bill has passed the lower house of parliament, but has been blocked in the upper house. Legislators started their winter session on Thursday, which will continue until December 23.

“GST, that’s the key reason why the market is holding on and some amount of short covering on the last day of expiry,” said Alex Mathews head of research at Geojit BNP Paribas.

Logistics company Gati Ltd gained 5.90 per cent on hopes of GST being cleared.

Drug major Sun Pharmaceutical Industries rose 4.11 per cent after the company on Wednesday said its unit would not go ahead with a wind energy project in the United States.

Hero MotoCorp fell as much as 1.34 per cent in the early trade but closed 1.52 per cent up after the US private equity firm Bain Capital sold stake in the company.

However, Dr Reddy’s Laboratories fell over 8 per cent after the US Food and Drug Administration released details of its warning letter issued to the drugmaker earlier in November.

3.18 pm: Sensex was up 186 points at 25,962. Shares of Videocon Industries climbed nearly 10 per cent on Thursday after Idea Cellular signed a pact with Videocon Telecommunications to buy its airwaves in
Gujarat and Uttar Pradesh West for Rs 3,310 crore.

3.00 pm: Shares in National Aluminium were up 4 per cent after the company on Tuesday said it received $8 million towards an out of court settlement from a US firm.

2.25 pm: Sensex was up 209 points at 25984. Nifty was up 58.30 points at 7890.10. Benchmark indices continued to trade in green on hopes of seeing Goods and Services Tax (GST) bill sail through in Parliament, which has gathered for a winter session that begins today. Some strength also came in after Moody’s said that most Indian companies under its rating scanner would benefit from strong domestic growth and accommodative monetary policy in 2016. Some support also came with the report that India’s crude oil import bill is likely to dip by 35 per cent to $73 billion this fiscal as global energy prices slumped on weak demand.

2.13 pm: India’s crude oil import bill is likely to dip by 35 per cent to $73 billion this fiscal as global energy prices slumped on weak demand. India had imported 189.43 (milion tonnes) mt of crude oil in 2014-15 for Rs 6.87 lakh crore. This fiscal the imports are projected at 188.23 mt almost the same level as previous year. The country imported 114.9 mt of crude during April- October for $43.6 billion, according to the data of Petroleum Planning & Analysis Cell (PPAC). Going by the trend, PPAC projected an import of 188.23 mt for $73.28 billion or Rs 4.73 lakh crore.

1.52 pm: Shares of Indian Oil Corporation was up 1.70 per cent at Rs 425.35. Stocks of the oil marketing company jumped after the company announced that it has entered into a licencing agreement with Evonik, a euro 1.9 billion creative industrial group from Germany, to get hydraulic fluid formulated with DYNAVIS technology in India. This oil will help the hydraulic equipment owners and operators (e.g. excavators, loaders, etc.) achieve higher levels of fuel efficiency and productivity. The BSE Oil & Gas index was up 0.84 per cent at 9338.71.

1.30 pm: Shares of Jindal Steel and Power were trading 4.52 per cent up at Rs 90.10 apiece. The BSE Metal index was up 1.57 per cent at 7126.20. Sensex was up 160 points at 25,936.

1.16 pm: Sensex was trading 156.04 points up at 25,931.78. NSE Nifty was trading 42.60 points up at 7,874.20. BSE Realty index was up 2.46 per cent and BSE Metal index was up 1.61 per cent.

1.00 pm: IDBI Bank launched a $ 350 million 5 year Reg S Green Bond issue on November 23, 2015. The transaction received an overwhelming response and the issue was oversubscribed by 3 times. The issue was made under the $5 billion MTN Programme listed on the Singapore Stock Exchange. The share price of IDBI Bank was trading 1.10 per cent up at Rs 82.90 in the afternoon trade. Sensex was up 141 points at 25,917.

12.51 pm: Godrej Properties has launched its flagship project — The Trees. With an area of 34 acres, this is one of the largest real estate projects in Mumbai and is the first step towards the greater development opportunity that will unfold in Vikhroli. The share price of Godrej Properties were up 0.98 per cent 318.60. Benchmark index Sensex was up 148 points at 25,924.

12.32 pm: Larsen & Toubro shares were trading 0.28 per cent up at Rs 1346.15. The share price of the engineering major climbed after the company said power transmission and distribution business of L&T Construction has bagged orders worth Rs 1,038 crore in domestic and international markets so far this month.

12.23 pm: Shares of Sun Pharmaceutical Industries gained as much as 4.5 per cent on Thursday after the company on Tuesday announced that its Israeli arm Taro has decided not to proceed with an investment in a wind energy project in the US. The scrip was trading 3.83 per cent up at Rs 735 in the afternoon trade.

11.38 am: Shares of Gammon India were up 15.56 per cent at Rs 17.90. The company on November 23 informed BSE that the Corporate Debt Restructuring Empowered Group-(CDR EG) in its meeting held on November 23, 2015 has discussed and noted the invocation of Strategic Debt Restructuring (SDR) in the Company by the CDR Lenders, pursuant to RBI Circular dated June 08, 2015.

11.33 am: In the scrip specific development, Lumax Automotive Systems was locked in upper circuit of 20 per cent on the BSE after the company said it filed application with the Board for Industrial and Financial Reconstruction (BIFR) for determination of the measures which shall be adopted with respect to the company. Sensex was up 145.33 points at 25,921.

11.10 am: Logistics stocks are in focus today as Prime Minister Narendra Modi on Wednesday called for a collective effort to make the two Houses function smoothly and ensure passage of important legislations, including the goods and services tax bill. Shares of Gati were trading 4.37 per cent up at Rs 161.05. Allcargo Logistics and Agarwal Industrial Corporation were up 1.31 per cent and 0.98 per cent at Rs 385.75 and Rs 155.30, respectively.

11.06 am: Apart from blue chips, broader indices too equally participated in the gain with both mid cap and small cap indices were up by 0.37 per cent and 0.67 per cent respectively. However, caution is likely to prevail in the markets ahead of the derivatives contracts expiry for the month of November.

10.59 am: Value-buying in consumer durables, realty, FMCG, IT and metal stocks positively impacted trading sentiment. Sensex was up 163 points at 25,938. Nifty was up 41.75 points at 7,873.

10.46 am: Shares of DLF were trading over 4 per cent up after promoters of realty major bought 23 lakh shares of the company through open market transactions for nearly Rs 25 crore. The promoters have bought these shares between November 23-24 from open market. Post this transactions, the stake of promoters, KP Singh and family, has increased to 74.99 per cent from 74.86 per cent it held earlier in the firm. The BSE Realty index was up 1.49 per cent at 1322.20.

10.29 am: Most of the Asian equity benchmarks are trading up in the early deals on Thursday, as geopolitical concerns eased and oil prices steadied on data showing a lower-than-expected buildup in oil inventories. Traders also cheered the prospects of fresh stimulus amid mounting speculation the European Central Bank will ease its policy further at its meeting next week.

10.27 am: US private-equity firm Bain Capital is set to exit Hero MotoCorp by selling its residual stake for Rs 800 crore ($116 million) in the Indian two-wheeler maker in a block deal. Bain Capital is selling its remaining stake at 1.7 per cent to 2.85 per cent discount within a price band of Rs 2,570 to Rs 2,600 per share. The share price of Hero MotoCorp was up 0.32 per cent at Rs 2,654. Sensex was up 133.50 points at 25,909.

10.10 am: Shares of Idea Cellular were trading 0.75 per cent up at Rs 140.90. Idea Cellular has entered into agreement with Videocon Telecommunications for acquiring right to use spectrum of Gujarat and Uttar Pradesh (West) for Rs 33.10 billion. This agreement for the company’s two Leadership telecom circles is for a quantum of 2×5 MHz contiguous blocks of 1800 MHz in each service areas, with right to use spectrum until December, 2032. The company intends to use this acquired spectrum for launch of 4G (LTE) Mobile Broadband Services in the service areas of Gujarat and Uttar Pradesh (West).

10.07 am: The rupee lost 9 paise to 66.41 against the US dollar in early trade on Thursday at the Interbank Foreign Exchange due to appreciation in the US currency overseas.

9.53 am: Shares of Lanco Infratech hit upper circuit on Thursday on reports that the company will raise about Rs 6,600 crore ($ 1 billion) through the sale of one of its large power projects and listing of its power business in the next two years. The share price of the company surged 9.86 per cent to Rs 7.02. Sensex was up 107.74 points at 25,883. Nifty was up 34.35 points at 7,865.

9.42 am: Tata Motors has displayed four new construction and mining related commercial vehicles at the Excon 2015 international trade fair in Bengaluru. The new vehicles showcased at Excon 2015 are the Tata PRIMA 3138.K 32 CuM Coal Tipper, Tata PRIMA LX 2523.K RePTO, Tata PRIMA LX 3128.K 19 CuM Scoop HRT and Tata SAK 1613. Shares of Tata Motors were trading 1.67 per cent up at Rs 407.75.

9.17 am: Sensex was up 96.46 points at 25,872. Nifty was up 26.40 points at 7,858. Shares of Dr Reddy’s Laboratories were down 6.26 per cent at Rs 3,176.60. The US Food and Drug Administration (US FDA), which had issued a warning letter to Dr Reddy’s Laboratories over quality issues, has said it might withhold approval of the company’s fresh drugs and stop import if no corrective action is taken.

9.15 am: Domestic equity markets opened on a flat to cautious note on Thursday on account of derivatives expiry. Traders are also eyeing the winter session of Parliament, which will begin today. Prime Minister Narendra Modi on Wednesday called for a collective effort to make the two Houses function smoothly and ensure passage of important legislations, including the goods and services tax bill.

The BSE Sensex opened 5.93 points, or 0.02 points, down at 25,769.81, while NSE Nifty opened 5.55 points up at 7,837.15.

However, markets are likely to remain volatile throughout the day on account of derivatives expiry. Also, the Winter Session of the Parliament that will start from November 26 (Thursday) is expected to be a stormy one.

Ambareesh Baliga, independent market expert said, “We could see a continuous logjam, unless the BJP takes an accommodative stance. The important bills going thorough is a pipe dream but the silver lining for the markets is the expectation levels are low. So any positive developments will be welcomed with a rally.”

Asian shares advanced in early trade on Thursday, while growing bets the European Central Bank was gearing up to deliver further stimulus steps kept the euro under pressure. Hang Seng, Nikkei and Shanghai were up 0.93 per cent, 0.56 per cent and 0.05 per cent, respectively.

The US markets made a flat closing in last session, despite some good economic data, as the traders remained on sidelines ahead of the Thanksgiving holiday. The Asian markets have made mostly a positive start with some indices rallying, led by surge in the industrial metal stocks and with recovery in global oil prices.

Back home, markets ended in the red on Tuesday as the benchmark BSE Sensex slipped by about 44 points to end at 25,775.74 on offloading of positions by participants amid a mixed trend in Asia and a lower opening in Europe. Domestic equity markets were closed on Wednesday on account of ‘Guru Nanak Jayanthi’.

(With inputs from agencies)

The BSE Sensex and NSE Nifty are likely to open in green on Thursday tracking SGX Nifty and Asian markets. (Express photo by Heena Khandelwal)

The BSE Sensex and NSE Nifty are likely to open in green on Thursday tracking SGX Nifty and Asian markets. At 8.30 am (IST), SGX Nifty was up 26 points, or 0.33 per cent, at 7,850.

However, markets are likely to remain volatile throughtout the day on account of derivatives expiry. Also, the Winter Session of the Parliament that will start from November 26 (Thursday) is expected to be a stormy one.

Analysts believe the upcoming Parliament session will keep Sensex and Nifty highly volatile. The session will end of December 23. Ambareesh Baliga, independent market expert said, “We could see a continuous logjam, unless the BJP takes an accommodative stance. The important bills going thorough is a pipe dream but the silver lining for the markets is the expectation levels are low. So any positive developments will be welcomed with a rally.”

Asian shares advanced in early trade on Thursday, while growing bets the European Central Bank was gearing up to deliver further stimulus steps kept the euro under pressure. Hang Seng, Nikkei and Shanghai were up 0.93 per cent, 0.56 per cent and 0.05 per cent, respectively.

The US markets made a flat closing in last session, despite some good economic data, as the traders remained on sidelines ahead of the Thanksgiving holiday. The Asian markets have made mostly a positive start with some indices rallying, led by surge in the industrial metal stocks and with recovery in global oil prices.

Back home, markets ended in the red on Tuesday as the benchmark BSE Sensex slipped by about 44 points to end at 25,775.74 on offloading of positions by participants amid a mixed trend in Asia and a lower opening in Europe. Domestic equity markets were closed on Wednesday on account of ‘Guru Nanak Jayanthi’.

(With inputs from agencies)

More than half of the companies that made their stock market debut this year have given positive returns and are trading well above their issue price. (Graphic: Sanjay Tambe)

More than half of the companies that made their stock market debut this year have given positive returns and are trading well above their issue price.

As many as 11 companies out of the total 18 that got listed this year are trading above their issue price, an analysis of the performance of the newly-listed firms showed.

This year, 18 companies that have so far launched IPOs have collectively raised nearly Rs 11,000 crore, making it the best in four years in terms of fund raising through initial share sale programmes.

The firms that are quoting above their issue price are S H Kelkar and Company, InterGlobe Aviation, Prabhat Dairy, Shree Pushkar Chemicals and Fertilisers, Navkar Corporation, Syngene International, Manpasand Beverages, PNC Infratech, VRL Logistics, Inox Wind and Ortel Communications.

Fragrance maker S H Kelkar and Co made a remarkable debut at the bourses earlier this month, surging more than 15 per cent over the issue price of Rs 180 per share.

The stock is currently trading at Rs 218.10, reflecting a gain of 21.16 per cent against the issue price.

Similarly, shares of IndiGo’s parent InterGlobe Aviation made a spectacular debut on bourses on November 10, surging nearly 15 per cent, over the issue price of Rs 765 per share.

It is now quoting at Rs 1,086, a steep rise of 41.96 per cent.

Syngene International, the research arm of biotechnology major Biocon, gave a positive return of 46 per cent at Rs 365.10 compared with the issue price of Rs 250.

Manpasand Beverages’ stock also climbed 30.6 per cent against its issue price of Rs 320.

Shares of PNC Infratech have zoomed 40.19 per cent over its issue price of Rs 378.

Transport and logistics firm VRL Logistics’ scrip has similarly seen over a two-fold jump against the issue price of Rs 205.

Firms which are trading below their issue price are Coffee Day Enterprises, Sadbhav Infrastructure Project, Pennar Engineered Building Systems, Power Mech Projects, UFO Moviez, MEP Infrastructure and Adlabs Entertainment.

The BSE 30-share index Sensex has lost 1,723.68 points, or 6.26 per cent, at 25,775.74 so far this year.

The index hit its 1-year low of 24,833.54 on September 8.

Six IPOs had hit the market for the whole of 2014 and together garnered just Rs 1,261 crore while three firms had launched their public issues in 2013 to mobilise Rs 1,284 crore.

New fund offers (NFOs) seem to be moving in a low gear as fund houses have launched only 340 new schemes in April-September of 2015 following Sebi’s direction to rationalise and consolidate offerings with similar goals. (Illustration: Shyam)

New fund offers (NFOs) seem to be moving in a low gear as fund houses have launched only 340 new schemes in April-September of 2015 following Sebi’s direction to rationalise and consolidate offerings with similar goals.

In comparison, mutual funds had come out with 1,059 NFOs for the whole of 2014-15.

The numbers stood at 1,023 and 1,168 in 2013-14 and 2012-13, respectively.

“Over the past few years, there has been a declining trend in the issuance of NFOs. This trend has been partly due to the regulator’s direction to rationalise and consolidate mutual fund schemes with similar objectives,” a report titled ‘Indian Mutual Fund Industry- The Road Ahead’ from Assocham today said.

“The requirement from the regulator to demonstrate the differentiation in investment style and attributes of a potential new fund has also impacted the pace of approvals.”

Furthermore, the requirement of disclosing details and number of funds managed by each fund manager has also led to more circumspection.

Most of the new schemes launched in April-September have been aimed at investment in equity and equity-related securities.

Besides, the products have been focused on diversified funds, exchange-traded funds, tax-saving instruments and arbitrage schemes.

Overall, a total of 120 draft documents have been filed with capital markets regulator Sebi to roll out new NFOs in the current fiscal so far.

Speaking at the Assocham event, Sebi executive director (Investment Management Department) Ananta Barua said: “Mutual Funds should come out with simple products so that more people can invest in such schemes. Currently, only two per cent people in India invest in mutual funds.”