Shares of select information technology (IT) and pharmaceutical companies are trading higher in otherwise weak market on defensive buying.
Sun Pharma, Lupin, GlaxoSmithKline Pharmaceuticals and Dr Reddy’s Laboratories from pharmaceuticals and HCL Technologies, Tech Mahindra, Wipro and MindTree from IT sector are up 1-3% on BSE.
As the central bank increased repo rate, the investors shifted their focus towards defensive stocks from interest rate-sensitives. The stocks belonging to the IT and pharmaceutical sectors trading higher, cyclical stocks lost significantly. Defensive stocks have historically done well during market corrections.
The Reserve Bank of India (RBI) today raised the repo rate by 25 basis points to 7.50% cent in a bid to check inflation.
Among the individual stocks, Dr Reddy's Laboratories hits a record high of Rs 2,402 in intra-day trade on BSE. The pharma stock has gained 8% in past three days after the company secured the approval of the US Food and Drug Administration (USFDA) to launch injectible medicine azacitidine, which is used in the treatment of bone marrow cancer and blood cell disorders.
Elder Pharma, Dishman Pharma and Ajanta Pharma from mid-cap space are up 1-5%.
On the other hand, shares of rate sensitive sectors such as real estate, infrastructure, automobiles and banking are down up to 12% amid concerns that hardening interest rates will hit demand for new loans, housing and vehicles
Sun Pharma, Lupin, GlaxoSmithKline Pharmaceuticals and Dr Reddy’s Laboratories from pharmaceuticals and HCL Technologies, Tech Mahindra, Wipro and MindTree from IT sector are up 1-3% on BSE.
As the central bank increased repo rate, the investors shifted their focus towards defensive stocks from interest rate-sensitives. The stocks belonging to the IT and pharmaceutical sectors trading higher, cyclical stocks lost significantly. Defensive stocks have historically done well during market corrections.
The Reserve Bank of India (RBI) today raised the repo rate by 25 basis points to 7.50% cent in a bid to check inflation.
Among the individual stocks, Dr Reddy's Laboratories hits a record high of Rs 2,402 in intra-day trade on BSE. The pharma stock has gained 8% in past three days after the company secured the approval of the US Food and Drug Administration (USFDA) to launch injectible medicine azacitidine, which is used in the treatment of bone marrow cancer and blood cell disorders.
Elder Pharma, Dishman Pharma and Ajanta Pharma from mid-cap space are up 1-5%.
On the other hand, shares of rate sensitive sectors such as real estate, infrastructure, automobiles and banking are down up to 12% amid concerns that hardening interest rates will hit demand for new loans, housing and vehicles