Market Indices- Nifty closed above 11250, pharma gains on robust earnings

 

Share Market Indices- Nifty, Sensex, Bank Nifty: Indian stock market opened strong and continued to trade higher during the day. The Bank Nifty volatility was trading volatile in a tight range in the second half. Pharma, Infrastructure, Capital goods stocks supported the Nifty to trade higher today.

The market sentiments remained positive with Commerce and Industry Minister Piyush Goyal’s statement that India can become a key player in the supply chain as there is rule of law, transparency in the system, strong judiciary, and democratic traditions. He has also said that India has to engage with the world with competitive prices, high-quality products, large scale economies of manufacturing, high productivity levels, but not on the crutches of government subsidies.

Adding some more fuel in optimism among investors, Union minister Nitin Gadkari has urged the industry to identify the sectors heavily reliant on imports, particularly from China, and look for substitutes towards indigenous production to make India a superpower.

On the global front, mostly all Asian markets are closed in the green as there was a report that Chia’s Industrial output growth is back in normalcy due to an increase in demand, government stimulus, and growth in exports. The European markets are trading marginally higher today. The Dow and Nasdaq futures indices are trading flat at this moment at 4 pm IST.

 

Share market today: Sensex, Nifty and Bank Nifty indices at close

 

At close, Nifty gained 56.10 points or 0.51% and at 11270.15 while Sensex was up by 141.51 points or 0.38% and at 38182.08. The Bank Nifty was volatile in a tight range and later gained 146.25 points or 0.68% and closed at 21900.25.

The Nifty midcap and smallcap indices outperformed the benchmark today. The Midcap index gained 209.35 points or 1.30% and closed at 16312.70 while Nifty small was up by 88.25 points or 1.68% and closed at 5351.15 levels.

The top five gainers in the Nifty50 index are Cipla, Larsen & Toubro, Mahindra & Mahindra, Tata Motors, and Sun Pharma. The losers in the Nifty50 index for the day are Eicher Motors, Asian Paints, Reliance, BPCL, and Maruti Suzuki. The most active stocks in the Nifty50 index during the day are Cipla, Reliance, and Bajaj Finance. Cipla, Ma&M were active and top gainers today as its Q1FY21 results announced on last Friday beat the streets estimates.

In the Nifty midcap and smallcap 100 indices, the midcap gainers are Indiabulls ventures, and Emami and the losers are RBL Bank and City Union Bank. In the smallcap index gainers are Strides Pharma, and GMM Pfaudler and the losers are Birla Corp and RCom.

On a sectoral basis, Healthcare, Infrastructure, Capital Goods, Power, and Insurance sectors are closed in strong notes. On the losing side, Oil & Gas, Retails, Logistics, and Footwear sectors closed in the red today.

 

Stocks in news today

IndusInd Bank last Saturday said it had acquired a 7.82% stake in battery maker Eveready Industries by invoking pledge shares after a loan default. The share price of IndusInd bank gained 0.07% and closed at 509.35 whereas the share price of Eveready gained at 2.30% and closed at Rs149.25 on the news.

The Equitas Holding Q1FY21 net profit was Rs 60 cr and NII was at Rs 404 cr. Moratorium books were at 43% as of July from 51% in June this year. Its gross NPA was at 2.68% and Net NPA stood at 1.39%. The share price of Equitas holding gained 2.16%  and closed at Rs 52.05 per share

Ipca Labs reported consolidated net profit at Rs 445.7 cr in Q1FY21 as compared to Rs 129.4 cr in the same period last year. The Company’s consolidated revenue went up 42.3% at Rs 1534.4 cr against 1079.2 Cr on YoY basis. Consolidated EBITDA was at Rs588.3 cr against Rs 198.7 cr. The share price of Ipca Labs gained 7.30% and closed at 2099.50 per share

Divis Labs reported an 80.61% rise in consolidated net profit at Rs 492.06 crore for June ended quarter due to robust sales. This is compared to a profit of Rs 272.44 cr profit in the same period last year. The share price of Divis Labs gained 12% and closed at 3117.80 per share.

 

Conclusions

 

The benchmark indices closed in the green for the third consecutive day today. Markets gained due to the robust Q1FY21 results by the pharma companies. The healthcare sectors gained more than 4% today. As discussed earlier Nifty needs to close above 11350 levels for a fresh breakout.

On the global front, investors are keeping a close eye on the US-China tension and delay in the US stimulus package. Any positive development in this two-front will improve market sentiments.

 

You can also read Nifty50, Bank Nifty & other key factors for next week

Nifty & Bank Nifty futures live technical analysis for 10th Aug

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