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Indices erase all losses; pharma shares advance

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Last Updated : Aug 08 2024 | 12:50 PM IST
The headline equity benchmarks pared all losses and traded with minor gains in early afternoon trade. The Nifty traded above the 24,300 level. Pharma shares extended gains for the second consecutive trading session. Trading was volatile due to weekly F&O series expiry today.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was up 86.13 points or 0.11% to 79,554.14. The Nifty 50 index added 19.70 points or 0.08% to 24,317.20.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.30% and the S&P BSE Small-Cap index added 0.71%.

The market breadth was positive. On the BSE, 2,270 shares rose and 1,496 shares fell. A total of 129 shares were unchanged.

Economy:

On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (August 8, 2024) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50%.

Consequently, the standing deposit facility (SDF) rate remains unchanged at 6.25% and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%.

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The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.

These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.

The projected real GDP growth for 2024-25 is maintined at 7.2%. The quarterly breakdown is as follows: Q1 at 7.1%; Q2 at 7.2%; Q3 at 7.3%; and Q4 at 7.2%. Real GDP growth for Q1:2025-26 is projected at 7.2%.

The projected CPI inflation for 2024-25 remains unchanged at 4.5%. The quarterly breakdown is as follows: Q2 at 4.4%; Q3 at 4.7%; and Q4 at 4.3%. CPI inflation for Q1:2025-26 is projected at 4.4%.

During the recent policy meeting, Dr. Shashanka Bhide, Dr. Rajiv Ranjan, Dr. Michael Debabrata Patra and Shaktikanta Das voted to keep the policy repo rate unchanged at 6.50%. Dr. Ashima Goyal and Prof. Jayanth R. Varma voted to reduce the policy repo rate by 25 basis points.

The minutes of the MPCs meeting will be published on August 22, 2024. The next meeting of the MPC is scheduled during October 7 to 9, 2024.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.76% to 16.46. The Nifty 29 August 2024 futures were trading at 24,330.05, at a premium of 12.85 points as compared with the spot at 24,317.20.

The Nifty option chain for the 29 August 2024 expiry showed maximum Call OI of 42.1 lakh contracts at the 25,000 strike price. Maximum Put OI of 39.5 lakh contracts were seen at 24,000 strike price.

Buzzing Index:

The Nifty Pharma index gained 0.93% to 22,242.15. The index rallied 3.15% in two consecutive trading sessions.

Alkem Laboratories (up 3.32%), Lupin (up 2.74%), Natco Pharma (up 1.91%), Zydus Lifesciences (up 1.47%), Cipla (up 1.36%), Ipca Laboratories (up 1.31%), Laurus Labs (up 1.18%), J B Chemicals & Pharmaceuticals (up 1.16%), Mankind Pharma (up 0.87%) and Gland Pharma (up 0.84%) advanced.

On the other hand, Divis Laboratories (down 0.53%) and Biocon (down 0.25%) edged lower.

Stocks in Spotlight :

Godrej Consumer Products (GCPL) slipped 3% to Rs 1,456. The company reported 41.36% increase in consolidated net profit to Rs 450.69 crore in Q1 FY25 as comapred with Rs 318.82 crore in Q1 FY24. Revenue from operations fell 3.4% YoY to Rs 3,331.58 crore during the quarter.

KPI Green Energy was hit an upper circuit of 5% after the companys consolidated net profit surged 98.76% to Rs 66.11 crore in Q1 FY25 as compared to Rs 33.26 crore recorded in Q1 FY24. Revenue from operations climbed 83.78% year on year (YoY) to Rs 348.01 crore in Q1 FY25.

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First Published: Aug 08 2024 | 12:36 PM IST

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