10:30am Aurobindo Pharma rallies
Shares of Aurobindo Pharma gained 3 percent as
Bank of America Merrill Lynch reiterated its buy rating on the stock. The
brokerage house sees 38 percent upside potential from current price level.
Aurobindo corrected 20 percent over the past few
days due to weak Q3FY15 operational performance. Operational performance was
hit due to one-off expenses such as mark-to-market losses on inventory and
one-time penalty for non-supply of products.
The brokerage believes the drug maker has
multiple levers of growth such as strong US pipeline, turnaround of WE business
and positive contribution of Natrol acquisition. Hence, it sees the current
weakness in the stock as a particularly good buying opportunity.
10:00am Market Check
Dragged by index heavyweights, the market is
crumbling down. The Sensex is down 235.25 points at 29227.02 and the Nifty is
down 65.20 points at 8830.10. About 1025 shares have advanced, 874 shares
declined, and 162 shares are unchanged.
Reliance, ICICI Bank, HDFC, Tata Power and Axis
Bank are major losers in the Sensex. Among the gainers are Hindalco, BHEL, Tata
Steel, GAIL and Sesa Sterlite.
Japanese stocks rose to a fresh 15-year high and
the dollar was on the front foot again on upbeat US data, but continuing
uncertainty over the Greek debt negotiations weighed on the euro.
US weekly jobless numbers released overnight
proved better than expected, diffusing some of the pressure on the dollar that
followed dovish-sounding minutes from the last Federal Reserve policy meeting.
The minutes had dented expectations for an early interest rate hike by the Fed,
driving US debt yields and the dollar lower.
The greenback was also supported as the ebb and
flow of confidence in the difficult talks between Greece and its lenders capped
the euro.
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