Nifty slips below 17,300; Varroc Engg hits the roof

A bout of volatility was witnessed as key indices pared early gains in morning trade. The Nifty fell below the 17,300 mark. Pharma and realty shares rallied while media shares corrected for the second day. Positive global cues boosted sentiment.

At 10:26 IST, the barometer index, S&P BSE Sensex gained 181.47 points or 0.32% at 57,702.84. The Nifty 50 index rose 47.1 points or 0.27% at 17,292.65.

In the broader market, the S&P BSE Mid-Cap index rose 0.38% while the S&P BSE Small-Cap index added 0.14%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,701 shares rose while 1362 shares fell. A total of 114 shares were unchanged.

Results Today:

Wipro (down 1.41%), Ultratech Cement (up 0.40%), Maruti Suzuki India (up 0.05%) and IndusInd Bank (up 0.86%) are three Nifty 50 companies that will announce their results today.

Tata Chemicals, SBI Cards and Payment Services, Shriram City Union Finance, Can Fin Homes, Gillette India, GNA Axles, L&T Finance Holdings, Solara Active Pharma Sciences, Sonata Software, Star Health and Allied Insurance Company, Supreme Industries, Tanla Platforms and Thyrocare Technologies are some of the other companies that will announce their results today.

Buzzing Index:

The Nifty Pharma index gained 0.57% to 13,556.25, rising for second trading session. The pharmaceutical index rallied 1.48% in two days.

Sun Pharmaceuticals Industries (up 2.26%), Dr Reddys Laboratories (up 1.67%), Aurobindo Pharma (up 1.22%), Glenmark Pharmaceuticals (up 1.09%) and Lupin (up 1.03%) were the top gainers. Among the other gainers were Zydus Lifesciences (up 1%), Pfizer (up 0.6%) and Alkem Laboratories (up 0.37%).

Biocon fell 0.45%. The drug maker reported a 6% fall in consolidated net profit to Rs 239 crore on a 31% rise in revenue from operations to Rs 2,409 crore in Q4 FY22 over Q4 FY21. On the segmental front, revenue from Generics was Rs 717 crore (up 26% YoY), Biosimilars revenue was Rs 982 crore (up 48% YoY), Novel Biologics revenue was Rs 12 crore and revenue from Research services was Rs 758 crore (up 15% YoY). Gross R&D spend increased by 70% YoY to Rs 232 crore. EBITDA rose by 3% to Rs 659 crore in Q4 FY22 from Rs 641 crore in Q4 FY21. EBITDA margins were at 27% in Q4 FY22 as against 31% in Q4 FY21.

Stocks in Spotlight:

Varroc Engineering (VEL) hit an upper circuit limit of 20% at Rs 494.60 after the company said it will divest its 4-wheeler lighting system operations in the Americas and Europe to France's Compagnie Plastic Omnium SE for 600 million euros. The transaction will see VEL divesting its lighting System operations in the USA, Brazil, Mexico, Poland, Czech Republic, Germany, Turkey, and Morocco. VEL aims to transform itself into a high-tech company and focus on the existing growth of electronics, connectivity, electrical vehicles (EVs) product lines and the 2-wheeler segment globally.

Jindal Poly Films (JPFL) advanced 3.23% to Rs 1155 after the company said that Jindal Polypack, a wholly owned subsidiary of the company, entered into an agreement to acquire 100% shareholding of SMI Coated Products. SMI Coated Products is engaged in the manufacturing of pressure sensitive labels which are used in multiple industries such as lubricants, pharma, FMCG etc. The company had recorded a turnover of Rs 273 crore in FY2020-21. The acquisition would augment JPFL's existing growth plans resulting in forward integration by expanding into downstream product segment i.e. labels and related products.

Powered by Capital Market - Live News