Indices turn volatile; pharma stocks tumble

Key equity indices witnessed a dash of volatility in morning trade. The Nifty was trading near the crucial 11,800 mark. Pharma stocks witnessed selling. At 10:21 IST, the barometer index, the S&P BSE Sensex, was up 108.8 points or 0.27% at 40,472.03. The Nifty 50 index was up 27.03 points or 0.23% at 11,856.70.

In the broader market, the S&P BSE Mid-Cap index was up 0.12% while the S&P BSE Small-Cap index was down 0.02%.

The market breadth, indicating the overall health of the market, was almost even. On the BSE, 882 shares rose and 862 shares fell. A total of 114 shares were unchanged. In Nifty 50, market breadth was positive with 30 stocks advancing and 20 stocks declining.

Buzzing Index:

The Nifty Pharma index declined 1.01% to 8,033.85, extending losses for third consecutive session. The index has tumbled 4.12% in three sessions.

IPCA Laboratories (down 1.93%), Divi's Laboratories (down 1.92%), Glenmark Pharmaceuticals (down 1.63%), Sun Pharmaceuticals (down 1.61%), Dr Reddy's Laboratories (down 1.46%), Cipla (down 0.74%) and Cadila Healthcare (down 0.26%) were top losers in pharmaceutical space.

Shares of Biocon were down 3.29% at Rs 303.8. The US Food and Drug Administration (USFDA) conducted a pre-approval inspection (PAI) of insulins manufacturing facility of Biocon's Malaysian subsidiary for insulin Glargine, between 10 and 21 February 2020. At the conclusion of the inspection, the agency issued a Form 483 with three observations. Biocon said it believes that the observations are procedural in nature. It will respond to the FDA with an appropriate Corrective and Preventive Action Plan (CAPA) and is confident of addressing these observations expeditiously.

Stocks in Spotlight:

Shares of Linde India were trading 5.68% lower at Rs 727.50. The company announced its Q4 December 2019 result after market hours yesterday, 25 February 2020. On a standalone front, company's net profit jumped 64% to Rs 25.28 crore on a 26.6% decline in net sales to Rs 412.82 crore in Q4 December 2019 over Q4 December 2018.

NTPC gained 1.32% to Rs 111.2 after the Competition Commission of India approved NTPC's 74.5% acquisition of THDC. The proposed acquisition is of issued and paid-up share capital of the THDC from the Government of India. THDC is a government company with 74.50% of its total shares held by the Government of India and 25.50% of its shares held by the Government of Uttar Pradesh as on 31 March 2019.

The National Stock Exchange (NSE) on Monday (24 February) announced inclusion of Bandhan Bank, HDFC Life Insurance Company and Info Edge in the Futures & Options (F&O) segment with effect from 28 February 2020. Further, NSE said that the market lot, scheme of strikes and quantity freeze limit will be informed to members on 27 February 2020 through a separate circular.

Shares of Bandhan Bank (up 2.18%), HDFC Life Insurance Company (up 2.89%) and Info Edge (up 3%) were trading higher.

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