IGI Logo

Key Indian benchmarks were trading flat with negative bias in noon session, tracking weak cues from other Asian markets. Selling in frontline blue chip stocks such as Bharti Airtel, Titan Company and TCS restricted the markets to go up. Traders were worried as Standard and Poor’s (S&P) said credit profiles could deteriorate for up to $114 billion of debt in the books of Indian companies tackling rising interest rates and inflation. However, downfall remain capped as Foreign Institutional Investors (FIIs) stood as net buyers and bought shares worth Rs 563 crore on Tuesday, according to exchange data. In scrip specific development, most of the Adani group stocks tumbled amid a private report that the conglomerate is ‘deeply overleveraged’ with the group predominantly using debt to invest aggressively across existing as well as new businesses. On the global front, Asian markets were trading mostly lower as markets speculate that the central bank will continue to tighten its monetary policy.

The BSE Sensex is currently trading at 58995.45, down by 35.85 points or 0.06% after trading in a range of 58760.09 and 59170.87. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.22%, while Small cap index was up by 0.66%.

The top gaining sectoral indices on the BSE were Realty up by 1.89%, Telecom up by 0.44%, Power up by 0.39%, Utilities up by 0.37% and Industrials was up by 0.26%, while Consumer Durables down by 0.46%, TECK down by 0.31%, IT down by 0.20%, Auto down by 0.19% and Oil & Gas was down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.65%, Indusind Bank up by 1.48%, Power Grid up by 0.88%, Larsen & Toubro up by 0.49% and HDFC was up by 0.43%. On the flip side, Bharti Airtel down by 1.03%, Titan Co down by 0.94%, TCS down by 0.87%, Bajaj Finance down by 0.86% and SBI was down by 0.82% were the top losers.

Meanwhile, Rating agency -- CRISIL in its latest report has said that the domestic pharma industry is likely to report moderate revenue growth of 7-9 percent in the current fiscal (FY23), due to headwinds in export sales in the regulated markets and a high-base effect in the domestic formulations business.

According to the report, operating profitability will shrink another 200-250 basis points (bps) after the 130 bps decline last fiscal due to continued pricing pressure in the US generics market, and high input and freight costs which offset moderate revenue growth. It stated that the domestic formulations market is expected to grow 7-9 percent this fiscal, on a 15 percent growth last fiscal, led by a 6-8 percent average price increase allowed by the National Pharmaceutical Pricing Authority in March 2022 and on the back of new product launches.

The report further said while the demand for Covid-19-induced drugs and vitamins is fading, a pickup in lifestyle-related chronic portfolio drugs and a few acute portfolio drugs, such as in the dermatology and ophthalmology segments, is likely to drive demand this fiscal.

The CNX Nifty is currently trading at 17566.35, down by 11.15 points or 0.06% after trading in a range of 17499.25 and 17623.65. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were NTPC up by 2.43%, ONGC up by 2.28%, Apollo Hospital up by 2.07%, Indusind Bank up by 1.48% and Power Grid was up by 0.81%. On the flip side, Divi's Lab down by 1.86%, Bharti Airtel down by 1.10%, Titan Co down by 1.03%, Bajaj Finance down by 0.92% and BPCL was down by 0.91% were the top losers.

Asian markets were trading mostly lower; Hang Seng decreased 242.55 points or 1.24% to 19,260.70, Nikkei 225 slipped 139.28 points or 0.49% to 28,313.47Taiwan Weighted dropped 26.70 points or 0.18% to 15,069.19, Shanghai Composite declined 55.28 points or 1.69% to 3,220.94 and Straits Times was down by 13.54 points or 0.42% to 3,232.67.

On the other hand, KOSPI rose 12.11 points or 0.5% to 2,447.45 and Jakarta Composite was up by 2.55 points or 0.04% to 7,165.82.

Above views are of the author and not of the website kindly read disclaimer