Markets ended higher on Thursday after Dr Reddy's Labs strategic tie-up with Amgen fuelled a rally in pharma shares while capital goods shares firmed up on renewed buying interest. India which deferred the talks with the European Union on the proposed free trade agreement expressing disappointment and concern over the EU banning sale of around 700 pharma products clinically tested by GVK Biosciences also aided sentiment.
The 30-share Sensex ended up 75 points at 28,298 and the 50-share Nifty ended up 21 points at 8,589.
"Pharma majors have been recently acquiring assets overseas and today's rally was largely led by pharma shares following the strategic tie-up with Amgen by Dr Reddy's Labs.
Further, the Nifty is likely to face strong resistance above 8,600 levels," said Prakash Diwan, Director, Altamount Capital Management.
In the broader market, the BSE Mid-cap index ended up 0.4% and Small-cap index ended down 0.1%.
Market breadth ended weak with 1,531 losers and 1,397 gainers on the BSE.
Foreign portfolio investors were net buyers in Indian equities to the tune of Rs 448 crore on Wednesday, as per provisional stock exchange data.
The Indian rupee was trading flat to the US dollar at 63.76 compared to the previous close of 63.75.
SECTORS & STOCKS
BSE Capital Goods index was the top gainer up 1.7% followed by Consumer Durables and Healthcare indices.
However, BSE Metal, Oil and Gas indices were the sectoral losers. Pharma shares rallied after Dr Reddy's Labs after it announced plans to expand in Europe and grow its proprietary products business over the next two years.
The company has entered into a strategic collaboration with Amgen – one of the world’s leading independent biotechnology companies - to market and distribute three Amgen medicines in India in the areas of oncology and cardiology. Dr Reddy's Labs gained nearly 2% while Lupin, Cipla and Sun Pharma ended up 0.5-1.4% each.
Capital goods shares firmed up after robust results from Siemens.
Siemens ended up 1.7% after hitting a record high of Rs 1,558 after the company reported a 13-fold jump in standalone net profit at Rs 168 crore for the quarter ended June 30, 2015 (Q3), due to cost rationalisation process and strong performance by its power and gas segement. L&T was the top Sensex gainer to end 2.7% higher while BHEL ended up 0.6% ahead of its first quarter earnings on Friday.
IT majors recouped early losses and ended with marginal gains post encouraging earnings from Cognizant.
Infosys and TCS ended up 0.3-1.3% each. Among the index heavyweights, ITC ended down 1.7% while Reliance Industries eased 0.7%.
Among other shares, Nahar Spinning Mills ended locked in upper circuit of 20% at Rs 153 on the BSE after the textile company reported a net profit of Rs 26.38 crore for the first quarter ended June 30, 2015 (Q1), due to lower raw material cost.
The company had a net loss of Rs 11.47 crore in year ago quarter.
Cummins India ended up 13% on huge volumes after the company posted better-than-expected net profit of Rs 211 crore as against expectation of Rs 169 crore. Net profit was Rs 212 crore in the corresponding period last year.
Motherson Sumi Systems ended down 5% after the company reported a lower-than-expected net profit of Rs 266 crore for the quarter ended June 30, 2015 (Q1). The auto parts and equipment makers had posted a profit of Rs 164 crore in the same quarter last year.
© 2024 Rediff.com -