INDICES TRADE WITH MINOR CUTS, PHARMA STOCKS IN DEMAND

The domestic equity benchmarks continued to trade near the flat line with minor cuts in mid-morning trade. The Nifty hovered below the 19,850 mark. Pharma shares extended gains for the second day in a row. Trading was volatile due to the expiry of weekly index options on the NSE today.

At 11:27 IST, the barometer index, the S&P BSE Sensex, was down 56.17 points or 0.08% to 67,041.27. The Nifty 50 index shed 3.55 points or 0.02% to 19,829.60.

In the broader market, the S&P BSE Mid-Cap index declined 0.03% while the S&P BSE Small-Cap index gained 0.29%.

The market breadth was positive. On the BSE, 1,827 shares rose and 1,364 shares fell. A total of 151 shares were unchanged.

Jio Financial shares valued at Rs 261.85 each:

During a pre-open call auction session, the market price of Jio Financial Services (JFSL) shares was determined to be Rs 261.85 per share on the National Stock Exchange (NSE). This was a result of the demerger, which caused the share price of Reliance Industries (RIL) to fall to Rs 2,580.

Reliance Industries announced that the post-demerger acquisition cost for Reliance Strategic Investments (which will be renamed JFSL) is 4.68%. This acquisition cost amounts to Rs 133 based on the closing price of Rs 2,840 on the Bombay Stock Exchange (BSE) on Wednesday.

The market price of the demerged entity, JFSL, was calculated during a special pre-open trading session conducted by the BSE and NSE. JFSL has a total of 676.6 crore outstanding shares, resulting in a market capitalization of Rs 1.77 lakh crore on the NSE.

All RIL shareholders as of the end of trading on 19 July 2023, will receive JFSL shares in a 1:1 ratio. The price of JFSL is determined by the difference between RIL`s closing price on Wednesday and the price derived during the special pre-open session.

Jio Financial will be temporarily added to various indices, including Nifty50, Nifty100, Nifty200, and Nifty500, by creating a dummy symbol on the NSE. JFSL will remain part of these indices at a constant price until it is officially listed on the exchanges.

Buzzing Index:

The Nifty Pharma index rose 1.04% to 14,239.80. The index gained 1.59% in two trading sessions.

Gland Pharma (up 3.72%), Alkem Laboratories (up 2.77%), Dr Reddys Laboratories (up 2.67%), Natco Pharma (up 2.6%), Glenmark Pharmaceuticals (up 1.58%), Aurobindo Pharma (up 1.34%), Zydus Lifesciences (up 1.14%), Sun Pharmaceuticals Industries (up 1.11%), Cipla Ltd (up 0.98%) and Pfizer (up 0.75%) edged higher.

On the other hand, Glaxosmithkline Pharmaceuticals (down 0.4%), Ipca Laboratories (down 0.28%) and Granules India (down 0.13%) declined.

Stocks in Spotlight:

Can Fin Homes rose 0.96%. The company reported 13% rise in net profit to Rs 183.46 crore on a 14% increase in net interest income to Rs 285.09 crore in Q1 FY24 as compared with Q1 FY23. Net interest margin was 3.48% as on 30 June 2023 as against 3.60% as on 30 June 2022. Operating profit improved by 15% to Rs 247.60 crore in Q1 FY24 from Rs 215 crore in Q1 FY23.

Finolex Industries added 1.24% after the company reported 10.78% rise in standalone net profit to Rs 110.88 crore in Q1 FY24 as compared to Rs 100.09 crore in Q1 FY23. However, total income from operations declined marginally to Rs 1,179.17 crore in the quarter ended 30 June 2023.

Global Markets:

Asian stocks traded mixed on Thursday as investors digested a slew of economic data across the region. China left its one year and five year loan prime rates unchanged at 3.55% and 4.2% respectively, days after it also left its medium term facility loan rates unchanged at 2.65%.

Japan recorded a surprise trade surplus of 43.05 billion yen ($308.5 million) in June. This was a sharp reversal from the 1.38 trillion yen deficit recorded in May, and the 1.37 trillion yen seen in June 2022.

US stocks ended higher Wednesday following earnings reports from a spate of banks and other large companies.

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