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Benchmarks magnify gains in late afternoon session
Sep-25-2020

Key benchmark indices were magnifying their gains in late afternoon session. There were no losers on sectoral indices on the BSE. Traders remain energized after Reserve Bank of India (RBI) has said it will conduct simultaneous purchase and sale of government securities under open market operation (OMO) for an aggregate amount of Rs 10,000 crore each on October 1, 2020 on a review of the current liquidity and financial conditions. On the sectoral front, pharma sector remained in focus, as ratings agency CRISIL in its latest report has said that higher exports will help the Indian pharmaceutical sector come out ‘unscathed’ from the Covid-19 pandemic and deliver a marginally lower 9 percent revenue growth. It noted that exports and domestic formulations account for an almost equal share in the Rs 2.8-lakh crore domestic pharma sector.

On the global front, Asian markets are trading mixed as investors sentiment lifted by reports that U.S. Democrats are drafting a new $2.4 trillion relief bill, aimed at resuming the stalled stimulus talks with Republicans. European markets were trading mostly in red as the continent grapples with a fresh wave of COVID-19 cases.

The BSE Sensex is currently trading at 37307.21, up by 753.61 points or 2.06% after trading in a range of 36730.52 and 37330.84. There were 29 stocks advancing against 1 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 2.46%, while Small cap index was up by 1.97%.

The top gaining sectoral indices on the BSE were Telecom up by 5.71%, TECK up by 3.88%, IT up by 3.48%, Metal up by 3.01% and Capital Goods was up by 2.78%, while there were no losers on sectoral indices on the BSE.

The top gainers on the Sensex were Bharti Airtel up by 6.04%, Bajaj Finserv up by 5.40%, HCL Tech. up by 5.32%, Indusind Bank up by 4.48% and TCS up by 4.22%. On the flip side, Kotak Mahindra Bank down by 0.23% were the top losers.

Meanwhile, ratings agency CRISIL in its latest report has said that higher exports will help the Indian pharmaceutical sector come out ‘unscathed’ from the Covid-19 pandemic and deliver a marginally lower 9 percent revenue growth. It noted that exports and domestic formulations account for an almost equal share in the Rs 2.8-lakh crore domestic pharma sector.

According to the report, in 2020-21, growth in exports at 11-12 percent, as against 10 percent last fiscal, will outpace growth in domestic formulations expected at 5-6 percent from 10 percent in 2019-20. It also said this will lead to a 8-9 percent overall growth, which is down just 1.50 percentage points from the year-ago period. Besides, it stated that operating profitability for the 350 pharmaceutical companies it rates, which represent 70 percent of the sector's revenue, would soften by 1.50 percentage points but remain healthy at 19 percent despite the higher input prices.

The report further said currently, the export pie is divided into regulated markets such as the US and Europe (45 percent), rest of world (ROW) markets (35 percent), and bulk drugs (20 percent). It said exports growth is expected to remain strong at 10 percent in each of the segments. It noted that the growth in the regulated markets will be supported by a steady increase in new product launches from compliant plants, lower pricing pressure on existing generics, and a visible easing in scrutiny by the United States Food and Drug Administration (USFDA) in recent months.

The CNX Nifty is currently trading at 11024.50, up by 218.95 points or 2.03% after trading in a range of 10854.85 and 11031.40. There were 47 stocks advancing against 3 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 6.33%, Bharti Airtel up by 5.62%, HCL Tech up by 5.10%, Indusind Bank up by 4.53% and Adani Ports up by 4.21%. On the flip side, BPCL down by 1.75%, SBI Life down by 1.04% and Kotak Mahindra Bank down by 0.16% were the top losers.

Asian markets are trading mixed, Nikkei 225 surged 116.80 points or 0.51% to 23,204.62, Jakarta Composite soared 103.03 points or 2.13% to 4,945.79, Straits Times advanced 14.89 points or 0.61% to 2,465.71, KOSPI rose 6.09 points or 0.27% to 2,278.79. On the flip side, Shanghai Composite declined 3.76 points or 0.12% to 3,219.42, Taiwan Weighted dropped 31.47 points or 0.26% to 12,232.91 and Hang Seng was down by 75.65 points or 0.32% to 23,235.42.

European markets were trading mostly in red, France’s CAC decreased 31.58 points or 0.66% to 4,731.04 and Germany’s DAX decreased 55.07 points or 0.44% to 12,551.50. On the flip side, UK’s FTSE 100 increased 6.11 points or 0.1% to 5,828.89.
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