Shares trade with decent gains; pharma shares snap 2-day losing streak

The key equity indices were currently trading with decent gains in early afternoon trade. The Nifty marched towards the 16,700 mark. Pharma stocks were in demand.

At 11:27 IST, the barometer index, the S&P BSE Sensex, was up 116.7 points or 0.21% to 56,065.80. The Nifty 50 index added 48.05 points or 0.29% to 16,684.95.

In the broader market, the S&P BSE Mid-Cap index rose 0.58% while the S&P BSE Small-Cap index gained 0.65%.

The market breadth was strong. On the BSE, 1777 shares rose and 1254 shares fell. A total of 159 shares were unchanged.

Investors remained cautious ahead of the Federal Reserve's annual Jackson Hole symposium and geopolitical tension in Afghanistan.

US central bankers will meet virtually for an annual gathering traditionally held in Jackson Hole in Wyoming. Jerome H. Powell, the Fed's chair, will speak on Friday and is expected to reveal details about how and when the bank plans to begin winding down its bond-buying program. The Fed has started discussions to pull back its $120 billion a month bond-buying program by the end of this year.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, shed 0.90% to 13.42. The Nifty 26 August 2021 futures were trading at 16,700, at a premium of 15.05 points as compared with the spot at 16,684.95.

The Nifty option chain for 30 September 2021 expiry showed maximum Call OI of 19.1 lakh contracts at the 16,500 strike price. Maximum Put OI of 27.8 lakh contracts was seen at 16,000 strike price.

Buzzing Index:

The Nifty Pharma index rose 1.16% to 13,917.55. The index declined 0.85% in the past two sessions.

Cadila Healthcare (up 1.51%), Dr. Reddy's Labs (up 1.48%), Alkem Laboratories (up 1.40%), Cipla (up 1.33%), Biocon (up 1.29%), Sun Pharma (up 1.20%), Divi's Labs (up 1.14%) and Aurobindo Pharma (up 1.09%) advanced.

Stocks in Spotlight:

ADF Foods rose 1.33% to Rs 810.15 after the company said its wholly-owned US-based subsidiary ADF Holdings (USA) will invest upto $5 million to strengthen the US distribution network. The proposed subsidiary will be a distribution company and will help the company move up the value chain. This will further strengthen its penetration and distribution with the retailers with an enlarged product portfolio.

Bharat Heavy Electricals (BHEL) added 1.63% to Rs 52.85. The company said that it signed a memorandum of understanding (MoU) with JSC Rosoboronexport for joint production of equipment of Russian-origin. JSC Rosoboronexport is the sole state intermediary agency for Russia's exports/imports of defense-related and dual use products, technologies and services.

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