Nifty, Sensex gain strength; Oct WPI inflation at -3.81%

Moneycontrol Bureau12:55 pm Market Update: Equity benchmarks extended rally in noon trade with the Sensex rising 134.05 points to 25744.58 and the Nifty climbing 36.60 points to 7798.85.12:45 pm Buzzing: Shares of Apollo Tyres climbed 3.4 percent intraday as India's second-largest tyre manufacturer will buy German-based tyre retail and distribution company.

The company said its wholly owned subsidiary will acquire Reifencom GmbH for 45.6 million euro in all cash deal, adding this deal is likely to be completed in 1-3 months.

Reifencom has turnover of 147 million euro in 2014 and has presence in Germany, Austria, Switzerland, Italy, France & Denmark.

12:30 pm FII View: Despite good macro indicators, corporate earnings have not improved in recent times, says Mahesh Nandurkar, Indian strategist at CLSA. He says low inflation has hurt property and rural market due to which positive macros haven’t transmitted to earning numbers. He expects the recovery to be slow, though the initial signs are visible. Over two years, market will deliver 15 percent compounded growth and will give 30 percent returns, he says adding that the key factor in growth will be capex recovery, which is expected to be slow. He expects further earning downgrades in the near-term.12:15 pm Shasun's USFDA nod: Shasun Pharmaceuticals said it has received US health regulator's nod to market pain relief drug Carisoprodol in the US market. In a BSE filing, Shasun Pharmaceuticals said, "It has received approval from the United States Food and Drug Administration (US FDA) for Carisoprodol tablets." The approval is for the 250 mg and 350 mg strengths. Shasun Pharma said Carisoprodol tablets of 250 mg and 350 mg have sales of approximately USD 38 million.

"While the 350 mg has a few generic players, Shasun expects to be the first marketed generic player in the USD 16 million Carisoprodol tablets of 250 mg opportunity," it added. Shasun Pharmaceuticals said the product will be manufactured at its Puducherry plant and distributed through a partner. It's expected to be launched shortly.Also read - Structurally OW India; QE may resume in US: Chris Wood12:00 pm Market Check

The market gained strength in afternoon trade with the Nifty eyeing 7800 led by banking, metals, infra and FMCG stocks. However, technology stocks remained under pressure.

The Sensex rose 71.98 points to 25682.51 and the Nifty was up 24.95 points at 7787.20. The broader markets also rebounded as the BSE Midcap and Smallcap indices gained 0.2 percent.

WPI inflation came in at negative 3.81 percent for October against negative 4.54 percent in previous month. October core inflation stood at negative 2 percent against negative 1.93 percent in September.