Indices slip in negative zone; Nifty below 15,800

The benchmark indices incurred losses during the early afternoon trade. The Nifty index breached 15,800 level. Pharma stocks witnessed a sell off.

At 12:20 IST, the barometer index, the S&P BSE Sensex, fell 122.66 points or 0.23% at 52,729.61. The Nifty 50 index lost 28.40 points or 0.18% at 15,796.05.

In the broader market, the S&P BSE Mid-Cap index slipped 0.05% while the S&P BSE Small-Cap index added 0.47%.

The market breadth was positive. On the BSE, 1,808 shares rose and 1,331 shares fell. A total of 129 shares were unchanged.

Economy:

The second wave of COVID-19 may have a more lasting damage on the Indian economy and exports will once again be the foundation for recovery, Moody's Analytics said on Monday.

The Delta variant of COVID-19 is among factors now adversely affecting economies of the Asia-Pacific (APAC) region, but the economic hit from the current round of movement restrictions in the region will not be as severe as the recessions in the second quarter of last year.

In India, where exports make up relatively small shares of the economy, high commodity prices have boosted the value of exports. This is one factor that helped reinvigorate India after its first devastating wave of COVID-19.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 19,47,21,008 with 41,67,618 deaths. India reported 3,98,100 active cases of COVID-19 infection and 4,21,382 deaths while 3,06,21,469 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India on Tuesday reported 29,689 new cases, the number falling under 30,000 for the first time since 17 March 2021. The country's active caseload too has dropped, and now stands under 4 lakh. Even as the mass vaccination programme progresses, there are concerns about the private sector not administering enough doses. Despite being allotted 25% vaccines, private firms have vaccinated only 7% people so far.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 0.82% to 12.5525. The Nifty 29 July 2021 futures were trading at 15,802, at a premium of 5.95 points as compared with the spot at 15,796.05.

The Nifty option chain for 29 July 2021 expiry showed maximum Call OI of 81.3 lakh contracts at the 15,900 strike price. Maximum Put OI of 70.5 lakh contracts was seen at 15,800 strike price.

Buzzing Index:

The Nifty Pharma index fell 2.64% to 14,265.30. The index rose 1.19% in three sessions, till yesterday.

Dr Reddy's Laboratories (down 6.77%), Aurobindo Pharma (down 3.23%), Cipla (down 2.43%), Sun Pharmaceutical Industries (down 2.30%) and Lupin (down 2.29%) were the major losers in the Pharma segment.

Biocon slipped 1.71%. The Bangalore-based pharmaceutical major said that its subsidiary Biocon Biologics has partnered with Adagio Therapeutics to advance antibody for the prevention and treatment of COVID-19. Biocon Biologics announced on Monday that U.S. based Adagio Therapeutics has granted an exclusive license to Biocon Biologics to manufacture and commercialize an antibody treatment based on ADG20 for India and select emerging markets. Biocon Biologics is a subsidiary of Biocon and is a fully integrated global biosimilars organization.

Dr. Reddy's Laboratories tumbled 6.77% after the drug company's consolidated net profit fell 1.47% to Rs 570.8 crore in Q1 FY22 from Rs 579.30 crore reported in Q1 FY21. Consolidated revenue from operations increased by 11.3% to Rs 4,919 crore in Q1 FY22 from Rs 4,417.5 crore posted in Q1 FY21. Profit before tax tumbled 16% year on year to Rs 742.50 crore in Q1 FY22 from Rs 878.90 crore registered in Q1 FY21.

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