Market trades in range; pharma stocks correct

The market barometers turned range bound in mid-afternoon trade. At 14:24 IST, the barometer index, the S&P BSE Sensex, was up 854.08 points or 2.61% at 33,574.24. The Nifty 50 index was up 252.25 points or 2.64% at 9,805.60. Trading was volatile ahead of the monthly F&O expiry today.

Among the sectoral indices, Nifty Auto index (up 5.74%), Nifty Metal index (up 5.12%) and Nifty IT index (up 4.05%) outperformed the benchmark Nifty index. Nifty Pharma index (down 0.80%), Nifty FMCG index (down 0.55%) and Nifty Media index (down 0.28%) underperformed the benchmark Nifty index.

Global shares were positive following developments overnight regarding the use of Gilead Sciences' antiviral drug Remdesivir as a potential new treatment for Covid-19 patients. Sentiment also improved after China said manufacturing activity in the country expanded slightly in April.

Buying was also triggered after foreign portfolio investors (FPIs) turned net buyers of Indian equities on Wednesday (29 April). FPIs bought shares worth a net Rs 722.08 crore on 29 April 2020, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 78.67 crore on 29 April 2020, as per provisional data.

In the broader market, the S&P BSE Mid-Cap index rose 1.45% while the S&P BSE Small-Cap index added 1.33%. Both these indices trailed the Sensex.

The market breadth was strong. On the BSE, 1332 shares rose and 1022 shares fell. A total of 169 shares were unchanged. In Nifty 50 index, 44 stocks advanced while 6 stocks declined.

Buzzing Index:

The Nifty Pharma index was down 0.80% to 9,310.55, extending losses for third day. The index has fallen 3.03% in three sessions.

Sun Pharmaceutical Industries (down 3.06%), Lupin (down 3.03%), Alkem Laboratories (down 1.36%), Divi's Laboratories (down 1.24%), Wockhardt (down 0.91%), Abbott India (down 0.69%), Cipla (down 0.67%), Cadila Healthcare (down 0.54%), Aurobindo Pharma (down 0.52%) declined.

Stocks in Spotlight:

Bharat Forge (up 10.46%), The Federal Bank (up 6.34%), Cholamandalam Investment And Finance Company (up 5.68%), RBL Bank (up 5.64%) and Amara Raja Batteries (up 5.41%) were the top mid-cap gainers.

Cyient (up 8.61%), Kajaria Ceramics (up 6.71%), Sunteck Realty (up 5.15%), Just Dial (up 5.13%) and MCX (up 4.46%) were the top small-cap gainers.

Shriram Transport Finance Company spurted 9.14% to Rs 761. The company said it is considering raising funds through various options of borrowings, including by issuing debt securities in onshore/offshore market by public issue and/or private placement basis and commercial papers.

KEC International rose 4.45% to Rs 195. The company has resumed operations/despatches at all its five factories in India in a phased manner. A large number of the firm's domestic project sites for T&D/Railways/Civil business have also commenced operations in a phased manner after receiving the requisites approvals/advisories. The company has already applied for permissions for the remaining project sites and is hopeful that operations would be resumed at rest of the sites in the near future.

Mahindra & Mahindra Financial Services surged 5.61% to Rs 165.65 after the company said it completed the proceedings for divestment of 49% stake in its asset management subsidiary to Manulife. Manulife has invested $35 million (about Rs 265 crore) in the 51:49 joint venture, which aims to expand its fund offerings, drive fund penetration and achieve long term wealth creation in India. The joint venture brings together Mahindra Finance's domestic market strength and track record of building successful businesses and partnerships, with Manulife's global wealth and asset management capabilities and richness of experience in servicing the needs of consumers in Asia and around the world.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee edged higher to 75.0925 compared with its previous closing of 75.66.

The yield on 10-year benchmark federal paper fell to 6.11% as compared with 6.125% in the previous trading session.

MCX Gold futures for 5 June 2020 settlement added 0.39% to Rs 45,722.

In the commodities market, Brent crude for June 2020 settlement was up $1.72 to $24.26 a barrel. The contract rose $2.08 or 10.16% to settle at $22.54 a barrel in the previous trading session.

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