Trades In Green, GSK Pharma Up 20%

As we expected, the Indian markets have opened on a positive note in line with the global cues. The Sensex is up 0.3% and Nifty is up 0.21 points at 5638.

The Asian markets have come off their day's high. Japan has continued trading in gains after the Yen weakened against major currencies. The Shanghai markets have partially cut their morning losses and Hang Seng has slipped into the negatives over concerns of the recent rally in the US market.

Among the sectoral indices, PSU and Realty are witnessing negative trades and Auto and Bankex are flat. All the rest are in gains. Metals is up 0.85%, followed by Teck (0.78%) and IT (0.7%).

In individual stocks, Tata Steel is the top gainer, higher by with 1.85%. Sterlite is up by 1.5%, Tata Power by 1.18% and Bharti Airtel has gained 1.1%.  IT stocks TCS, Wipro and Infosys are also in the gainers list. M&M, on the other hand, has dropped by over 1%. As we expected, Sun Pharma saw a downward move by about 1%. SBI, NTPC, Maruti Suzuki, etc. are also in the losers list.

The shares of GlaxoSmithKline Consumer Healthcare surged by 20% to a new high. The company said that its promoters wish to increase their stake by 31.84% by means of a share buyback (at Rs 3900 per share). Glaxo Smithkline Pharma has also surged by 4% on this news.

Jet Airways is seeing strong buying and its stock has moved higher by 14%. SpiceJet is also seeing a similar response on the bourses and is trading up by 9%.

Strides Arcolab has moved to a new high at Rs 1012 per share. Ranbaxy is also trading lower after it recalled a batch of its generic of Atorvastatin from the US market on Friday.

Overall, the market breadth is very positive. Ahead today, we expect the markets to remain due to the uncertainty of the recent reforms undertaken by the government.