Indices trade with minor gains, pharma stocks in demand
Published on Feb 24, 2023 11:32
The headline equity indices traded with small gains in mid-morning trade. The Nifty traded above the 17,500 level. Pharma stocks witnessed bargain buying after declining in the past five trading sessions.
At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 79.19 points or 0.13% to 59,684.99. The Nifty 50 index gained 16.20 points or 0.09% to 17,527.45.
In the broader market, the S&P BSE Mid-Cap index added 0.12% while the S&P BSE Small-Cap index rose 0.29%.
The market breadth was positive. On the BSE, 1,748 shares rose and 1,462 shares fell. A total of 173 shares were unchanged.
The Finance Ministry released the monthly economic review for January 2023 which reported that the geopolitical tensions in Europe, spiralling energy, food and fertiliser prices, monetary tightening and inflationary trends have elevated the downside risks to the global economic outlook. Despite these headwinds, the Indian economy is estimated to grow by 7% YoY in FY23.
During the fourth quarter of 2022-23, various high-frequency indicators (HFIs) pointed towards a slowdown in general, as monetary tightening appeared to have started weakening global demand. This may continue in 2023 as various agencies have forecasted a decline in global growth. Apart from the lagged impact of monetary tightening, the uncertainties emanating from the lingering pandemic and relentless conflict in Europe may further dampen global growth.
The Nifty Pharma index rose 0.45% to 12,022.25. The index witnessed bargain buying after declining 2.69% in five trading sessions.
Sanofi India (up 3.81%), Divis Laboratories (up 3.04%), Glaxosmithkline Pharmaceuticals (up 1.42%), Alkem Laboratories (up 0.93%), Laurus Labs (up 0.82%), Natco Pharma (up 0.79%), Dr Reddys Laboratories (up 0.79%), Torrent Pharmaceuticals (up 0.5%), Sun Pharmaceuticals Industries (up 0.48%) and Pfizer (up 0.38%) edged higher.
On the other hand, Ipca Laboratories (down 1.13%), Zydus Lifesciences (down 1.08%) and Glenmark Pharmaceuticals (down 0.85%) turned lower.
Sanofi India rallied 3.81% after the company`s net profit surged 44.8% to Rs 130.9 crore in Q4 CY22 from Rs 90.40 crore in Q4 CY21. Revenue from operations fell 2.3% year on year (YoY) to Rs 671.90 crore in the quarter ended 31 December 2022.
Alkem Laboratories rose 0.93% after the company received Establishment Inspection Report (EIR) from the US drug regulator for its Indore facility, indicating closure of the inspection.
Strides Pharma Science shed 0.12%. The pharmaceutical company said that it has received establishment inspection report (EIR) from US Food and Drug Administration (USFDA) for its Bangalore facility, indicating closure of the inspection.
Stocks in Spotlight:
West Coast Paper Mills rallied 4.06% after the company said that the strike of contract workers was called off and production at the paper and paper board division at Dandeli has been re-started. The company stated that there has been marginal production loss due to disruption of plant operations. However, required preventive maintenance work in the plant has been carried out during that period, added the paper manufacturer.
Kanoria Chemicals & Industries gained 2.40% after the company announced its plans to set up a new Formaldehyde plant with 300 TPD capacity at the existing manufacturing facility at GIDC, Ankleshwar, Gujarat.
Asian stocks traded mixed on Friday as the nominee to lead the Bank of Japan spoke at a confirmation hearing. Bank of Japan governor nominee Kazuo Ueda has expressed support for the current monetary policy, as per reports. He added more time is needed to achieve the central bank`s inflation target and it aims to achieve price stability in a sustainable and stable manner.
Japan`s nationwide consumer price index rose 4.2% compared to a year ago in January, government data showed. The economy`s core CPI excluding fresh food and energy prices rose 3.2%, data showed, as overall CPI rose 4.3% year on year.
Wall Street ended higher on Thursday as investors grappled with how interest rate policy might affect the US economy.
US economic growth in the fourth quarter was weaker than previously estimated. Inflation-adjusted gross domestic product, or the total value of all goods and services produced in the US, increased at a 2.7% annualized rate during the period, Commerce Department data showed Thursday. The figure compares with a previously reported 2.9% advance.
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