Sensex rebounds, Nifty opens above 7600; Sun Pharma, RIL lead

Moneycontrol Bureau9:50 am Buzzing: Shares of Sun Pharmaceutical Industries have rallied 2.7 percent in early trade Friday. CLSA has maintained buy rating on the stock as it expects 72 percent year-on-year growth in FY17 earnings per share of the company.

According to the brokerage, it is a high conviction idea in Indian pharma space.

CLSA says Sun's FY17 EPS will be driven by Gleevec generic launch in the United States & synergy benefits with Ranbaxy that merged with effect from April 2015.

According to the brokerage, other catalysts for company's growth include early resolution of Halol warning letter, potential clearance of Ranbaxy’s Mohali plant and positive phase III data read of novel psoriasis drug Tildrakizumab.9:35 am QIP issue: State-run lender IDBI Bank has appointed seven merchant bankers, including Deutsche Bank, Credit Suisse and SBI Caps, for its proposed Rs 3,800-crore QIP issue. Without naming the i-bankers, IDBI Bank deputy managing director BK Batra confirmed to PTI that they have finalised the merchant bankers for the deal. Other bankers are Bank of America Merrill Lynch, HSBC India, Citigroup and IDBI Capital Markets, sources said.

The government on December 31 had allowed the bank to raise Rs 3,771 crore through a QIP route. The IDBI scrip tanked 6.4 percent to Rs 77.80 on the BSE today on a day when the market was roiled by the deepening crisis in the Chinese economy. The stock is down over 18 percent from its 52 week high of Rs 95.70.Also read - Indian mkt close to bottom; FII's may return soon: Macquarie Cap9:15 am Market Check

The market bounced back on last day of the week after falling for previous four consecutive sessions. The Sensex rose 173.99 points or 0.70 percent to 25025.82 and the Nifty climbed 43.35 points or 0.57 percent to 7611.65 on short covering.

HDFC, BHEL, Sun Pharma, Axis Bank, GAIL, Power Grid Corp, Cairn India and Tata Steel were early gainers.The Indian rupee gained in early trade. It has opened higher by 18 paise at 66.75 per dollar versus 66.93 Thursday.Pramit Brahmbhatt of Veracity said, "USD has strengthened against global peers based on Yuan concerns. Rupee managed to defend 67/dollar level and is expected to remain positive during the day. Range for the day is seen between 66.60-67/dollar."Yen continued to rally, rising to strongest levels against the dollar in over four months. The euro too rises against the dollar . The dollar index fell nearly 1 percent, its biggest one-day loss in nearly a month.Asian markets also recovered after yesterday's sell-off. Shanghai rallied more than 2 percent after yesterday's turmoil (down 7.3 percent) that led to a halt in trading. Hang Seng and Nikkei gained 0.5-1 percent.