Pharma & auto steer the bulls back on track, Nifty regains 24,800

The domestic equity benchmarks broke their three-day losing streak and ended with respectable gains Wednesday, thanks to strong support from pharma and auto stocks. The Nifty comfortably closed above the 24,800 mark.

While there were no major domestic cues driving the market, global jitters remained in play. Volatility in the US markets and lingering uncertainty around the US-China trade deal raised concerns about its potential impact on foreign institutional flows into emerging markets like India. Sentiment remains cautious, but for now, the bulls are back in the driver's seat.

The S&P BSE Sensex gained 410.19 points or 0.51% to 81,596.63. The Nifty 50 index rose 129.55 points or 0.52% to 24,813.45. In the previous three session, the Sensex and Nifty declined 1.63% and 1.51%, respectively.

In the broader market, the S&P BSE Mid-Cap index rallied 0.90% and the S&P BSE Small-Cap index added 0.51%.

The market breadth was positive. On the BSE, 2,291 shares rose and 1,685 shares fell. A total of 139 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 0.93% to 17.55.

Economy:

India's infrastructure output, which tracks activity across eight sectors and makes up 40% of the country's industrial production, grew at 0.5% annually in April as against 4.6% in March, data from Ministry of Commerce & Industry showed on Tuesday. The Index of eight Core Industries is the measure of combined and individual performance of production of eight core industries: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity.

India's retail inflation for farm as well as rural workers eased marginally to 3.48% and 3.53%, respectively, in April this year compared to the pace of price hikes for the two categories at 3.73% and 3.86% recorded in March. The All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) increased by 1 point each in April 2025 to stand at 1307 and 1320 points, respectively. The CPI-AL and CPI-RL were 1306 points and 1319 points, respectively, in March.

Numbers to Track:

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.5650, compared with its close of 85.5800 during the previous trading session.

MCX Gold futures for 5 June 2025 settlement added 0.86% to Rs 95,655.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.62% to 99.42.

The United States 10-year bond yield advanced 1.25% to 4.537.

In the commodities market, Brent crude for July 2025 settlement added 79 cents or 1.21% to $66.17 a barrel.

Global Markets:

The US Dow Jones index futures were currently down by 439 points, signaling a weak opening for US stocks today.

European shares declined on Wednesday as U.K.'s annual inflation data for April came in at 3.5%. The latest data release comes against a recent trend of cooling inflation, with the rate of price rises slowing to 2.8% in February and 2.6% in March.

Core inflation, which excludes more volatile energy, food, alcohol and tobacco prices, rose by 3.8% in the year to April, up from 3.4% in the twelve months to March.

Asian shares ended higher. The Bank of Indonesia's policy decision is expected later in the day. The central bank had cut interest rates in September 2024 and again in January 2025 but has maintained rates at 5.75% since then.

In Japan, trade data for April showed a surprise deficit, as exports were impacted by stronger yen levels and increased U.S. trade tariffs. The country posted a trade deficit of 115.8 billion yen ($800 million), compared to a 559.4 billion yen surplus in March. Exports rose 2% year-on-year, a slowdown from 4% in the previous month. Imports declined 2.2% year-on-year, compared to expectations for a 4.5% drop, and contrasted with a 1.8% increase in the prior month.

In the United States, the three major indices closed lower on Tuesday. The S&P 500 declined 0.39%, the Nasdaq Composite fell 0.38%, and the Dow Jones Industrial Average lost 0.27%, as investor sentiment weakened. The technology sector fell 0.5%, with declines in major companies including Nvidia (-0.9%), AMD, Meta Platforms, Apple, and Microsoft.

Geopolitical tensions weighed on markets following reports that Israel may be planning an attack on Iran's nuclear facilities. Oil prices rose on concerns over potential conflict in the Middle East.

Additionally, comments from several Federal Reserve officials signaled continued caution regarding economic and trade-related uncertainties. Policymakers indicated that elevated tariffs could contribute to inflation and reiterated a limited scope for near-term interest rate cuts.

Stocks in Spotlight:

Pharma stocks saw renewed buying interest after the US Department of Health and Human Services announced it's moving ahead with an executive order aimed at cutting healthcare costs. The statement was viewed as a positive for generic and biosimilar drugmakers, as the proposed pricing reforms are limited to branded drugs, suggesting minimal direct impact on the generics segment.

The Nifty Pharma index rose 1.25%. Gland Pharma (up 4.57%), Natco Pharma (up 2.59%), Biocon (up 2.38%), Alkem Laboratories (up 2.26%), Cipla (up 1.83%), Abbott India (up 1.80%), Ajanta Pharma (up 1.58%), Divi's Laboratories (up 1.57%), Ipca Laboratories (up 1.56%), Granules India (up 1.51%), Torrent Pharmaceuticals (up 1.50%), Sun Pharmaceutical Industries (up 1.42%), Lupin (up 1.17%), Aurobindo Pharma (up 0.94%), Zydus Lifesciences (up 0.76%), Laurus Labs (up 0.62%), Glenmark Pharmaceuticals (up 0.13%), Dr. Reddy's Laboratories (up 0.05%) surged.

Gabriel India jumped 6.05% after the company's net profit rose 31.24% to Rs 64.36 crore while net sales rose 17.03% to Rs 1,073.15 crore in Q4 March 2025 over Q4 March 2024.

Remsons Industries rallied 3.53% after reporting a 15% sequential rise in consolidated net profit to Rs 4.6 crore in Q4 FY25. Revenue from operations edged up 4% quarter-on-quarter to Rs 106.2 crore. However, the YoY picture was mixed. While net sales jumped 31% compared to Q4 FY24, adjusted net profit slipped 11% on account of a sharp dip in other income.

Bharat Electronics (BEL) jumped 5.29% after a domestic brokerage reiterated its 'Buy' call on the stock and raised the target price to Rs 430 from Rs 385. The brokerage highlighted higher localisation, a favourable product mix, and operational efficiencies as key levers driving BEL's growth trajectory.

JK Tyre Industries rallied 13.26% after the company's consolidated net profit jumped 88.35% to Rs 97.04 crore on a 2.31% increase in revenue from operations to Rs 3,758.60 crore in Q4 FY25 over Q3 FY25.

Whirlpool of India declined 2.28%. The company's consolidated net profit soared 53.62% to Rs 119.20 crore on 15.61% rise in revenue from operations to Rs 2,004.67 crore in Q4 FY25 over Q4 FY24.

NHPC added 1.17% after the company reported consolidated net profit of Rs 919.63 crore in Q4 FY25, up 51.99% as against Rs 605.02 crore in Q4 FY24. Revenue from operations jumped 24.37% year on year (YoY) to Rs 2,346.97 crore in the quarter ended 31 March 2025.

EIH slipped 2.31%. The company reported consolidated net profit of Rs 261.62 crore in Q4 FY25, up 5.66% as against Rs 247.59 crore in Q4 FY24. Revenue from operations rallied 11.61% year on year to Rs 827.45 crore in the fourth quarter of FY25.

Laxmi Organic Industries dropped 3.14% after the company's consolidated net profit fell 50.89% to Rs 21.76 crore in Q4 FY25 as against Rs 44.31 crore reported in Q4 FY24. Revenue from operations stood at Rs 709.69 crore in Q4 FY25, registering a de-growth of 10.39% from Rs 792.06 crore recorded in the corresponding quarter of the previous year.

Patel Engineering (PEL) shed 0.19%. The company said that it has been awarded a contract for undertaking the construction of hydropower project valued at Rs 711.29 crore by North Eastern Electric Power Corporation (NEEPCO).

IPO Update:

The initial public offer of Belrise Industries received bids for 11,36,52,896 shares as against 17,70,58,824 shares on offer, according to stock exchange data at 16:30 IST on 21 May 2025. The issue was subscribed 0.64 times.

The issue opened for bidding on 21 May 2025 and it will close on 23 May 2025. The price band of the IPO is fixed between Rs 85 and 90 per share. An investor can bid for a minimum of 166 equity shares and in multiples thereof.

Borana Weaves' IPO received bids for 10,61,21,655 shares as against 36,89,457 shares on offer, according to stock exchange data at 16:30 IST on 21 May 2025. The issue was subscribed 28.76 times.

The issue opened for bidding on 20 May 2025 and it will close on 22 May 2025. The price band of the IPO is fixed between Rs 205 and 216 per share. An investor can bid for a minimum of 69 equity shares and in multiples thereof.

Powered by Capital Market - Live News