Barometers trade with strong gains; pharma shares rise for 5th day

The domestic equity barometers continued to trade with strong gains in early afternoon trade. Positive global cues boosted the sentiment. The Nifty hovered near the 17,500 mark. Pharma shares extended gains for fifth consecutive session.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was up 595.74 points or 1.02% to 59,006.72. The Nifty 50 index gained 176.55 points or 1.02% to 17,488.35.

In the broader market, the S&P BSE Mid-Cap index rose 0.67% while the S&P BSE Small-Cap index gained 0.64%.

The market breadth was strong. On the BSE, 2,167 shares rose and 1,151 shares fell. A total of 133 shares were unchanged.

Economy:

Reserve Bank of India (RBI) stated that aggressive and synchronised monetary tightening has further weakened global economic prospects as financial markets sold off, investors took fright and jettisoned risky assets.

In India, broader economic activity has remained resilient and poised to expand further with domestic demand accelerating as the contact-intensive sectors are experiencing a bounce-back. Robust credit growth and fortified corporate and bank balance sheets provide further strength to the economy.

Headline inflation is set to ease from its September high, albeit stubbornly, on the back of easing momentum and favourable base effects. These factors will entrench India's prospects as one of the fastest growing economies of the world.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 4.76% to 17.54. The Nifty 27 October 2022 futures were trading at 17,283.70, at a premium of 0.70 points as compared with the spot at 17,283.

The Nifty option chain for the 27 October 2022 expiry showed maximum Call OI of 44.5 lakh contracts at the 18,000 strike price. Maximum Put OI of 40.4 lakh contracts were seen at 17,000 strike price.

Buzzing Index:

The Nifty Pharma index rose 0.09% to 12,993.55. The index has added 1.30% in five sessions.

Glenmark Pharmaceuticals (up 1.33%), Glaxosmithkline Pharmaceuticals (up 1.1%), Abbott India (up 0.91%), Biocon (up 0.82%) and Dr Reddys Laboratories (up 0.79%) were the top gainers.

Among the other gainers were Cipla (up 0.69%), Ipca Laboratories (up 0.5%), Pfizer (up 0.2%), Natco Pharma (up 0.11%) and Lupin (up 0.04%).

Aster DM Healthcare advanced 3.28%. The company said that its retail arm Aster Pharmacy has entered into a long-term joint venture agreement with Al Hokair Holding Group to setup and operate pharmacies in the Kingdom of Saudi Arabia (KSA). Aster Pharmacy through this partnership aims to set-up and operate 250 plus stores over a period of 5 years and provide ease of access to pharmaceutical and wellness products across the segments of nutrition, baby care, skin care, home healthcare etc.

Alembic Pharmaceuticals declined 1.26%. The firm received a Form 483 with four procedural observations for an inspection conducted by USFDA at its Panelav formulation facility.

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