Broader mkt outperforms, pharma shares edge higher

The domestic equity indices continued to trade with minor gains in early afternoon trade. The Nifty traded above the 22,250 mark. Pharma shares extended gains for the second consecutive trading session.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was up 122.14 points or 0.17% to 73,280.38. The Nifty 50 index rose 41.40 points or 0.19% to 22,258.85.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.51% and the S&P BSE Small-Cap index gained 0.66%.

The market breadth was positive. On the BSE, 2,200 shares rose and 1,549 shares fell. A total of 102 shares were unchanged.

Economy:

The Reserve Bank of India's (RBI) monetary policy committee (MPC) expressed caution regarding inflation, according to the minutes of the MPC meeting released on 22nd February. The committee members, including RBI Governor Shaktikanta Das, highlighted concerns about uncertainty in food prices, citing it as a significant source of volatility for the overall inflation outlook. Governor Das also emphasised that geopolitical tensions and supply chain disruptions could further contribute to inflation risks.

Deputy Governor Michael Debabrata Patra emphasized the need for a restrictive monetary policy to maintain downward pressure on inflation while minimising the output costs of disinflation. Governor Das warned that recurring food price shocks could disrupt the ongoing disinflation process, posing risks of de-anchoring inflation expectations and generalising price pressures.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 0.61% to 15.22. The Nifty 29 February 2024 futures were trading at 22,280.40, at a premium of 21.55 points as compared with the spot at 22,258.85.

The Nifty option chain for the 29 February 2024 expiry showed maximum Call OI of 123.8 lakh contracts at the 23,000 strike price. Maximum Put OI of 83.6 lakh contracts were seen at 22,000 strike price.

Buzzing Index:

The Nifty Pharma index rose 0.67% to 19,095.90. The index gained 0.94% in last two sessions.

Zydus Lifesciences (up 2.78%), Granules India (up 2.23%), Cipla (up 1.67%), Lupin (up 1.48%), Natco Pharma (up 1.31%), Sanofi India (up 1.25%), Dr Reddys Laboratories (up 1.23%), Torrent Pharmaceuticals (up 0.93%), Glaxosmithkline Pharmaceuticals (up 0.57%) and Sun Pharmaceuticals Industries (up 0.51%) edged higher.

On the other hand, Gland Pharma (down 2.93%), Glenmark Pharmaceuticals (down 1.24%) and Ipca Laboratories (down 1.09%) declined.

Stocks in Spotlight:

Bandhan Bank rose 1.25% after its board approved the appointment of Rajeev Mantri as the chief financial officer (CFO) and key managerial personnel (KMP) of the bank with effect from 22 February 2024.

IRCTC (Indian Railway Catering and Tourism Corporation) rallied 3.48% after the company tied up with Bundl Technologies (Swiggy Foods) for supply & delivery of pre-ordered meals through the company's e-catering portal.

Manappuram Finance rose 0.77%. The company said that its board has approved the issuance of non-convertible debentures (NCDs) having a face value of Rs 1 lakh each, for an aggregate amount of Rs 600 crore on private placement basis.

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