Sensex, Nifty move in tight band

Last Updated: Fri, Nov 16, 2012 06:47 hrs
People walk pass BSE building in Mumbai

The market, which retreated after a fairly good start, has been moving in a tight band since then amid alternate bouts of buying and selling in front line stocks. The mood, due to lingering uncertainty about the near term outlook for the global economy, remains quite cautious.

Automobile, bank and power stocks are mostly subdued. Realty, FMCG, oil and capital goods stocks are trading mixed. Information technology stocks, which declined sharply in the previous session, are finding some support thanks to a weak rupee. Select metal and pharmaceuticals stocks are also trading higher.

At 18,505.60, the Sensex is now up 34.23 points or 0.2% from its previous closing mark. The Nifty index of the National Stock Exchange is up marginally at 5632.45.

Bharti Airtel is up nearly 3.5% at Rs 301 on reports the telecom regulator TRAI has been asked to revise price for airwaves unsold in this week’s 2G spectrum auction. According to reports, an auction of 2G airwaves attracts less demand than targeted by the government because prices are seen as too high. In the auction held earlier this week, there were no bids for Delhi, Mumbai, Karnataka and Rajasthan.

Dr. Reddy's Laboratories Limited and OctoPlus have jointly announced that they have reached conditional agreement in connection with an intended public offer by Dr. Reddy's, or a wholly owned subsidiary of Dr. Reddy's, for all issued and outstanding ordinary shares in the capital of OctoPlus at an offer price of euro0.52 (cum dividend) in cash for each OctoPlus share. Shares of Dr Reddy's Laboratories are currently up 1.3% at Rs 1747.80.

Biocon has announced that it has entered into an option agreement with Bristol-Myers Squibb Company for Biocon’s IN-105, a prandial oral insulin product candidate. Under the terms of the agreement, Bristol-Myers Squibb will have the right to exercise an option to obtain an exclusive worldwide license to the program. The Biocon stock is down 0.7% at Rs 305 at present.

As per the agreement, Biocon will conduct clinical studies to further characterize IN-105’s clinical profile according to a pre-agreed development program up to the completion of Phase II.

In the currency market, the rupee drifted down to 54.96 against the U.S. dollar in early trade today, losing 26 paise. On Thursday, the rupee had ended up 18 paise at 54.70 against the greenback.

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