Pharma stocks, Infosys help Sensex gain for 3rd day; Midcap outperforms Nifty
Thu Aug 24 2017
Rajesh Sharma (2003 articles)

Pharma stocks, Infosys help Sensex gain for 3rd day; Midcap outperforms Nifty

Equity benchmarks closed mildly higher after consolidation throughout the session on Thursday due to lack of triggers. Investors awaited cues from central bankers’ Jackson Hole meeting.

The market was supported by Infosys, the most active share on bourses, and healthcare stocks but the selling in Reliance Industries, HDFC Group and FMCG stocks capped upside.

The 30-share BSE Sensex was up 28.05 points at 31,596.06 and the 50-share NSE Nifty gained 4.55 points at 9,857.05.

“I don’t expect the Nifty to cross 10,000 level soon. But if it moves closer to that level then selling may be seen,” Market Expert, Ambareesh Baliga said.

Jayant Manglik, President, Retail Distribution, Religare Securities said markets would react to global cues in early trade on Monday after the long weekend and then anxiety of derivatives expiry will take over. Broadly, indications are still bearish but we may see some pause before further decline, he feels.

Globally investors awaited central bankers’ comments on monetary policy from the Jackson Hole meeting on Friday. European markets – France’s CAC, Germany’s DAX and Britain’s FTSE were up 0.4 percent each at the time of writing this article. Asian markets ended mixed.

Back home, the broader markets outperformed benchmark indices as the BSE Midcap index gained 0.8 percent and Smallcap was up 0.4 percent on positive breadth. About five shares advanced for every four shares falling on the BSE.

Indian equity markets will remain shut on Friday for Ganesh Chaturthi holiday.

For the week, the Sensex, Nifty ended higher by 0.2 percent but the broader markets underperformed, with the Midcap index falling half a percent.

Nifty Bank closed lower by 0.2 percent on the weekly expiry day as HDFC Bank, ICICI Bank and Kotak Mahindra Bank saw mild correction.

PSU banks, however, continued to gain for another trading session after alternative mechanism for merger announced by the government on Wednesday. Bank of Baroda, PNB and SBI gained 0.6-1.4 percent.

Infosys continued to be in focus, up 2 percent after sources told CNBC-TV18 that Infosys is in initial stages to appoint selection panel to oversee selection. The panel, which aims to complete process within 4 months, is also in charge of overviewing board composition. Chairman R Seshasayee & co-chairman Ravi Venkatesan will move on only after situation is stable, sources said.

Pharma stocks hogged the limelight as Nifty Pharma index surged 3.3 percent. Analysts feel attractive valuations could be one reason for the rally as these stocks fell more than 50 percent in recent correction. Lupin, Sun Pharma, Dr Reddy’s Labs, Aurobindo Pharma and Cipla rallied 2.5-5 percent.

Cadila Healthcare spiked 7 percent as Zydus received approval from US FDA for hypertension drug, Candesartan Cilexetil tablet from Moraiya unit.

United Spirits, Pincon Spirit, Globus Spirit, GM Breweries and Radico Khaitan surged up to 11 percent as according to a media report, the Supreme Court clarified that the highway liquor ban does not apply within city limits.

Prakash Industries surged nearly 13 percent after media reports indicated that ace investor Rakesh Jhunjhunwala bought nearly 10 lakh shares through block deals.
Career Point shot up 19 percent after its profit in Q1 more than doubled to Rs 6.95 crore year-on-year on strong topline and operational performance. Dilip Buildcon was up 2.6 percent on signing term sheet with Shrem Group for divestment in 24 subsidiaries.

Rajesh Sharma

Rajesh Sharma

Rajesh Sharma is Correspondent for Stock Market of South East Asia based in Mumbai. He has been covering Asian markets for more than 5 years.


Rules of Discussion on Live Index

1. This forum is for discussion of financial markets. Please respect others view even if they are contrary to you.
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.