BROADER MKT OUTPERFORMS; PHARMA SHARES ADVANCE

The headline equity benchmarks traded with decent gains in early afternoon trade following the RBI`s decision to keep interest rates unchanged. The Nifty traded above the 25,100 level. Pharma shares advanced for the second consecutive trading session.

At 12:30 IST, the barometer index, the S&P BSE Sensex gained 355.51 points or 0.43% to 81,986.03. The Nifty 50 index added 125.90 points or 0.50% to 25,139.05.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index gained 1.29% and the S&P BSE Small-Cap index jumped 1.47%.

The market breadth was strong. On the BSE, 2,886 shares rose and 954 shares fell. A total of 121 shares were unchanged.

RBI Policy Outcome:

Reserve Bank of India (RBI) Governor Shaktikanta Das announced that the Monetary Policy Committee (MPC) has decided to keep interest rates unchanged, aligning with market expectations, while shifting its policy stance from "withdrawal of accommodation" to "neutral." The MPC voted by a 5:1 majority to maintain the policy repo rate at 6.5%. The RBI also retained its GDP growth target for FY25 at 7.2%. However, Consumer Price Index (CPI) inflation for September is expected to rise significantly due to unfavorable base effects and increasing food prices, according to the governor.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, declined 3.66% to 14.05. The Nifty 31 October 2024 futures were trading at 25,256.40, at a premium of 117.35 points as compared with the spot at 25,139.05.

The Nifty option chain for the 31 October 2024 expiry showed maximum Call OI of 46.4 lakh contracts at the 26,000 strike price. Maximum Put OI of 40.7 lakh contracts were seen at 25,000 strike price.

Buzzing Index:

The Nifty Pharma index rose 1.66% to 23,694.60. The index advanced 3.11% in the two trading sessions.

Divis Laboratories (up 6.03%), Ipca Laboratories (up 3.22%), J B Chemicals & Pharmaceuticals (up 3.11%), Laurus Labs (up 2.85%), Glenmark Pharmaceuticals (up 2.56%), Mankind Pharma (up 2.26%), Lupin (up 1.71%), Biocon (up 1.53%), Cipla (up 1.43%) and Natco Pharma (up 1.23%) edged higher.

Stocks in Spotlight :

Varun Beverages rose 0.70%. The company said that its board has approved a proposal to raise funds by way of issuance of equity shares for an aggregate amount not exceeding Rs 7,500 crore, in one or more tranches, through qualified institutions placement (QIP) route.

Oriental Rail Infrastructure fell 0.29%.The company secured an order worth Rs 6.91 crore from Modern Coach Factory (MCF) at Raebareli in Indian Railways. The cost of the project is Rs 6.91 crore and it is to be executed by 31 March 2025.

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