Key indices move towards the day`s low; pharma shares outperform

The key equity indices declined further and moved towards the day`s low in afternoon trade. The Nifty managed to hold above the 20,000 level. Pharma shares rose for second day in a row.

At 12:28 IST, the barometer index, the S&P BSE Sensex, was down 187.67 points or 0.28% to 66,714.24. The Nifty 50 index lost 42.95 points or 0.21% to 20,053.65.

In the broader market, the S&P BSE Mid-Cap index gained 0.43% while the S&P BSE Small-Cap index advanced 0.41%.

The market breadth was positive. On the BSE, 1784 shares rose, and 1782 shares fell. A total of 171 shares were unchanged.

Market valuation of BSE-listed companies crossed a record $4 trillion for the first time on November 29, on the back of positive market sentiment in Indian equities. FIIs turning buyers for five days in a row and DIIs buying aggressively have aided this strong trend. However, this rally has stretched the valuations of domestic equities significantly, pushing India�s market cap GDP ratio to 1.2.

Economy:

Union Cabinet approved extension of the PM Garib Kalyan Anna Yojana for another five years from January 1, 2024, with an estimated cost of Rs 11.8 lakh crore. The scheme was last extended till December 31, 2023.

Indian economy is likely to slow down further to 6.1% in FY25 compared with 6.3% projected in FY24 as global growth remains subdued, the OECD reportedly noted in its latest economic outlook.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, jumped 4.28% to 13.25. The Nifty 28 December 2023 futures were trading at 20,186, at a premium of 132.35 points as compared with the spot at 20,053.65.

The Nifty option chain for the 28 December 2023 expiry showed maximum Call OI of 31.6 lakh contracts at the 21,000 strike price. Maximum Put OI of 50.2 lakh contracts were seen at 19,000 strike price.

Buzzing Index:

The Nifty Pharma rose 0.85% to 16,126. The index has added 1.42% in two sessions.

Granules India (up 3.27%), Glaxosmithkline Pharmaceuticals (up 2.88%), Divis Laboratories (up 1.61%), Alkem Laboratories (up 1.58%) and Natco Pharma (up 1.58%) were the top gainers.

Among the other gainers were Aurobindo Pharma (up 1.58%), Lupin (up 1.39%), Laurus Labs (up 1.39%), Glenmark Pharmaceuticals (up 1.27%) and Torrent Pharmaceuticals (up 1.14%).

On the other hand, Sanofi India (down 0.26%) and Cipla (down 0.12%), moved lower.

Stocks in Spotlight:

Jupiter Wagons fell 2.37%. The company�s board has authorised the opening of the issue for qualified institutions placement (QIP) of equity shares on Wednesday, i.e. 29 November 2023. The board has approved a floor price of Rs. 331.34 for the issue, which is at 2.42% discount to yesterday�s closing price of Rs 339.55. The company�s board will meet on 4 December 2023 to consider and determine the issue price for the equity shares to be allotted to qualified institutional buyers pursuant to the issue.

PCBL gained 2.31%. The company received board approval for entering into a joint venture with Australian company Kinaltek Pty (Kinaltek), for expansion into the battery application market.

Aurobindo Pharma rose 1.65%. The company�s wholly owned subsidiary, Eugia Pharma Specialities received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Budesonide Inhalation Suspension.

Budesonide Inhalation Suspension is used for maintenance treatment of asthma and as prophylactic therapy in children of age 12 months to 8 years. According to IQVIA, the product has an estimated market size of $226.4 million for the twelve months ending September 2023.

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