Sensex, Nifty consolidate; pharma stocks in focus

Moneycontrol Bureau

10:58 am Market Update: The Sensex rose 8.92 points to 27654.07 and the Nifty added 6.65 points at 8325.05. About 1404 shares have advanced, 707 shares declined, and 113 shares are unchanged on the BSE. 

10:45 am Market Expert: Vikas Khemani, CEO at Edelweiss Capital says the Indian economy won't be significantly impacted by the Greek crisis as the market is well supported.

Khemani is of the view that 'Indian macros are well in place' which have also kept the market resilient. He said government's efforts of the past year will have a positive impact in the next 2-3 months.

Even in the worst case, he does not see Nifty going below 7,600 level, he adds.

10:35 am Gammon Infra in News: Gammon Infrastructure’s joint venture special purpose vehicle (SPV), Indira Container Terminal Pvt Ltd has accepted the Mumbai Port Trust (MbPT) proposal for alternative use of their Offshore Container Terminal for roll-on/roll-off operations. In includes provide facilities to the importers and exporters of automobiles and self propelled equipment. The project is for a period of one year from the date of operation with revenue share of 45 percent to ICTPL and 55 percent to MbPT.Speaking on the above development, KK Mohanty, MD, Gammon Infrastructure told CNBC-TV18 that this was a temporary arrangement for an interim period because Rs 1500 crore has already been invested by both the sides and it is not that alternate use has been permanently granted to the company. He said the revenue potential from Indira Terminal is around Rs 150 crore, out of which 55 percent will go to MbPT and the rest will be with the company. The traffic growth of Indira Container terminal is likely to be around 15 percent, he added. According to him the Indira Terminal will start generating revenues in two weeks and is likely to add around Rs 40-50 crore to the annual topline of Gammon Infra.

10:20 am Greece rating: Standard & Poor's Ratings Services lowered its sovereign rating on Greece to 'CCC minus' from 'CCC', saying the probability of Greece exiting the eurozone was now about 50 percent.

Greece's bailout talks with lenders collapsed over the weekend, intensifying fears that the country could soon exit the euro zone.

A Greek official told Reuters on Monday the country would not pay a 1.6 billon euro loan instalment due the International Monetary Fund on Tuesday.

S&P said according to its assessment Greece would likely default on its commercial debt during the next six months.

Should Greece exit the euro zone, there will be a serious foreign currency shortage for the private and public sectors in the country, which may lead to rationing of key imports, according to the rating services.

S&P's outlook on the country is negative.

The agency said it could lower its long-term ratings on the country within the next six months in case of a distressed exchange or nonpayment of commercial debt.

10:00 am Market Check

The market continued to consolidate ahead of deadline for the Greece to repay its debt. Today is the last day for the debt-laden country to avert default by paying euro 1.6 billion to International Monetary Fund. The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.7-0.9 percent.

The 30-share BSE Sensex rose 19.59 points to 27664.74 and the Nifty gained 10.45 points at 8328.85. Nearly two shares advanced for every share declining on the Bombay Stock Exchange.

Pharma stocks are in focus. Sun Pharmaceutical Industries rallied 2.5 percent intraday as brokerage Credit Suisse said the drug maker has taken price increases in six of Ranbaxy's branded products in the US in May 2015. Marksans Pharma surged 8 percent on buying US-based Time-Cap. Another pharma company Glenmark rallied 2 percent on receiving approval from US Food & Drug Administration (USFDA) for its cholesterol drug Ezetimibe.

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