Barometers slip into red; pharma shares outperform
Published on Jun 15, 2022 11:25
The key equity barometers failed to hold on to gains and turned negative in mid-morning trade. The Nifty traded below the 15,750 mark. Pharma shares, however, extended rising streak for second consecutive session.
At 11:22 IST, the barometer index, the S&P BSE Sensex, was down 41.51 points or 0.08% to 52,652.06. The Nifty 50 index lost 10.60 points or 0.07% to 15,721.50.
In the broader market, the S&P BSE Mid-Cap index rose 0.48% while the S&P BSE Small-Cap index added 0.59%.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1915 shares rose and 1159 shares fell. A total of 125 shares were unchanged.
Volatility persisted in markets across the globe ahead of the US Fed`s decision on interest rates, which will be announced later today. Friday`s red-hot inflation data from the US has raised the market expectations of an interest rate hike by 75 basis points, the largest in 28 years.
The Nifty Pharma index rose 0.41% to 12,268.10. The index has added 0.63% in two sessions.
Strides Pharma Science (up 2.24%), Ipca Laboratories (up 1.37%), Gland Pharma (up 1.19%), Natco Pharma (up 1.17%), and Divis Laboratories (up 1.11%) were the top index gainers.
Among the other gainers were Alkem Laboratories (up 0.95%), Cipla (up 0.82%), Lupin (up 0.69%), Glenmark Pharmaceuticals (up 0.45%) and Sun Pharmaceuticals Industries (up 0.22%).
Asian stocks were trading mixed on Wednesday, following overnight losses on Wall Street as the S&P 500 fell deeper into bear market territory.
China`s industrial output climbed 0.7% in May as compared with a year earlier, official data showed Wednesday, rising from the April`s 2.9% decline. Meanwhile, retail sales in May fell 6.7% year-on-year.
However, as Beijing saw clusters of COVID-19 outbreaks, the Beijing authorities warned on Tuesday that the city was in a "race against time", adding to worries that the resumption of stringent curbs could hurt its economy and global supply chain.
U.S. stock indexes had a mixed Tuesday on fears that red-hot inflation will prompt more aggressive rate increases from the Federal Reserve. The S&P 500 tumbled 0.38% to close at 3,735.48. The Dow Jones Industrial Average dropped 151.91 points, or 0.5%, to settle at 30,364.83. The Nasdaq Composite rose 0.18% to finish at 10,828.35.
Recession fears in the US continued to loom large ahead of the US Fed`s policy outcome due on Wednesday. A major foreign brokerage has reportedly forecast a 75-basis point (bp) interest rate hike from the Fed`s June policy meeting on Wednesday. A 75-bp hike would reportedly be the biggest since 1994.
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