Barometers trade with decent gains; pharma shares in demand

The frontline indices continued to trade with modest gains in mid-morning trade. The Nifty traded above the 24,900 level. Pharma shares advanced after declining in the previous trading session.

At 11:28 IST, the barometer index, the S&P BSE Sensex, was up 193.21 points or 0.24% to 81,648.78. The Nifty 50 index rose 72.25 points or 0.29% to 24,929.55.

In the broader market, the S&P BSE Mid-Cap index added 0.85% and the S&P BSE Small-Cap index added 0.21%.

The S&P BSE Mid-Cap and S&P BSE Small-Cap index hit an all-time high at 48,665.28 and 55,685.07, respectively.

The market breadth was strong. On the BSE, 2,192 shares rose and 1,525 shares fell. A total of 127 shares were unchanged.

Sebi proposes stricter rules for index derivatives:

The market regulator is looking to curb speculation, protect investors, and stabilize the market by introducing measures like upfront option premiums, increased contract sizes, and restrictions on weekly index products.

IPO Update:

The initial public offer (IPO) of Akums Drugs and Pharmaceuticals received 3,04,82,716 bids for shares as against 1,51,62,239 shares on offer, according to stock exchange data at 11:15 IST on Wednesday (31 July 2024). The issue was subscribed 2.01 times.

The issue opened for bidding on Tuesday (30 July 2024) and it will close on Thursday (01 August 2024). The price band of the IPO is fixed between Rs 646 to Rs 679 per share. An investor can bid for a minimum of 22 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Pharma index added 0.80% to 21,713.70. The index shed 0.69% in the past trading session.

Granules India (up 5.70%), Lupin (up 3.01%), Gland Pharma (up 2.80%), Zydus Lifesciences (up 2.15%), Torrent Pharmaceuticals (up 2.01%), Glenmark Pharmaceuticals (up 1.96%), Ipca Laboratories (up 1.74%), Biocon (up 1.53%), Abbott India (up 1.49%) and Sun Pharmaceuticals Industries (up 1.44%) advanced.

On the other hand, Divis Laboratories (down 1.45%), J B Chemicals & Pharmaceuticals (down 1.18%) and Mankind Pharma (down 1.09%) edged lower.

Stocks in Spotlight:

360 One Wam advanced 1.36% after the company reported 34.3% increase in consolidated net profit to Rs 243 crore in Q1 FY25 as compared with Rs 181 crore posted in corresponding quarter last year. Revenue jumped 60.6% YoY to Rs 697 crore in Q1 FY25.

Samvardhana Motherson International added 1.21% after the company informed that its board will meet on Friday, 2 August 2024, to consider raising of funds by issue of equity shares or any other securities convertible into equity shares or a combination of such securities.

Global Markets:

Asian stocks advanced on Wednesday ahead of key interest rate decisions. Investor focus remained on central bank, with the US Fed's decision due later in the day. While a rate hike is unlikely, markets anticipate signals of potential future cuts.

The Bank of Japan has raised its policy rate to 0.25% from it previous range of 0% to 0.1% and plans to cut its bond-buying program by 400 billion yen per quarter. From January to March 2026, the monthly purchases of Japanese Government Bonds (JGBs) will be reduced to 3 trillion yen, with a goal of decreasing the amount of JGBs bought in a predictable manner.

China's manufacturing sector contracted for a third straight month in July, as indicated by the Purchasing Managers' Index (PMI) data. Manufacturing PMI fell to 49.4 in July, data from the National Bureau of Statistics showed. This reflects persistent weakness in domestic demand despite government support measures.

Australia's inflation rate rose as expected in the second quarter, but a softer-than-anticipated core inflation figure increased bets on a pause in interest rate hikes by the Reserve Bank of Australia. CPI inflation grew 3.8% year-on-year in the three months to June 30, up from the 3.6% seen in the prior quarter.

US stocks declined on Tuesday, primarily due to a drop in Nvidia, ahead of the Fed meeting. The S&P 500 fell by 0.5% while the tech-heavy Nasdaq Composite dropped roughly 1.3%. The Dow Jones Industrial Average rose 0.5%.

Market expectations are for the Fed to maintain interest rates on Wednesday but to signal a potential rate cut in September. This outlook is driven by encouraging inflation data.

Powered by Capital Market - Live News