The benchmark indices traded in a narrow range with modest gains in the early afternoon trade. The Nifty hovered above the 18,100 level. Pharma, healthcare and IT stocks were in demand while media and oil & gas shares corrected.
At 12:30 IST, the barometer index, the S&P BSE Sensex, was up 350.41 points or 0.58% to 61,097. The Nifty 50 index gained 115.65 points or 0.64% to 18,127.85.
In the broader market, the S&P BSE Mid-Cap index rose 0.81% while the S&P BSE Small-Cap index gained 0.31%.
The market breadth was positive. On the BSE, 1,897 shares rose and 1,450 shares fell. A total of 134 shares were unchanged.
The US Fed, which begins its two-day meeting Tuesday, is reportedly expected to deliver a fourth straight 75-basis-point rate hike on Wednesday in its attempt to tame inflation. Investors will also focus on the communication of the outlook.
On the numbers front in the US, the release of JOLTS job openings, construction spending and ISM manufacturing PMI data will remain on investor's radar.
Economy:
The seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) stood at 55.3 in October, up from 55.1 in September.
The latest figure was above its long-run average (53.7), indicating a stronger improvement in the health of the sector. The upward movement in the headline figure largely reflected stronger increases in employment and stocks of purchases.
Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said: "Manufacturers continued to loosen the purse strings as they expect demand buoyancy to be sustained in coming months.
There was a marked rise in input purchasing, with firms adding to their inventories to better align with client purchasing. Capacities were again expanded to accommodate for improving sales. The Future Output Index component indicated robust business optimism towards the year-ahead outlook for output.
Derivatives:
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 2.34% to 16.17. The Nifty 24 November 2022 futures were trading at 18,182.05, at a premium of 54.2 points as compared with the spot at 18,127.85.
The Nifty option chain for the 24 November 2022 expiry showed maximum Call OI of 21.3 lakh contracts at the 18,000 strike price. Maximum Put OI of 29.2 lakh contracts were seen at 17,000 strike price.
Buzzing Index:
The Nifty Pharma index rose 1.73% to 13,440.65.The index advanced 3.01% in two trading sessions.
Divis Laboratories (up 5.41%), Natco Pharma (up 3.3%), Laurus Labs (up 2.65%), Torrent Pharmaceuticals (up 2.61%), Ipca Laboratories (up 2.59%), Glenmark Pharmaceuticals (up 2.57%), Alkem Laboratories (up 2.49%), Dr Reddys Laboratories (up 2.46%), Aurobindo Pharma (up 2.4%) and Abbott India (up 1.87%) jumped.
Alembic Pharmaceuticals gained 2.50%. The drug maker on Tuesday announced that it has received a final approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Glycopyrrolate Injection USP. The pharmaceutical company said that this is the first injectable product approval from its General Sterile Facility (F-3) which was inspected in August 2022. The approved ANDA is therapeutically equivalent to the reference listed drug product (RLD), of Hikma Pharmaceuticals USA Inc. (Hikma).
Solara Active Pharma Sciences rallied 4.11% after the company said it received European Approval (CEP) to manufacture Ibuprofen from its flagship Vizag facility. The pure play active pharmaceutical ingredient provider announced that its new multipurpose API manufacturing facility at Vishakhapatnam, Andhra Pradesh, received 'Certificate of Suitability' (CEP) approval for the manufacture of Ibuprofen API, from European Directorate for the Quality of Medicines (EDQM), the first international regulatory approval for this new facility.
IPO Updates:
The initial public offer (IPO) of DCX System received bids for 86.14 lakh shares as against 1.45 crore shares on offer, according to stock exchange data 12:24 IST on, Tuesday (1 November 2022). The issue was subscribed 3.78 times.
The issue opened for bidding on Monday (31 October 2022) and it will close on Wednesday (2 November 2022). The price band of the IPO is fixed at Rs 197 to 207 per share. An investor can bid for a minimum of 72 Equity Shares and in multiples thereof.
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