Pharma Stock Losses Deepen as Indices Remain Rangebound

Pharma stock losses intensified today, with broader equity indices trading in a narrow range. The Nifty index dipped below 23,500, reflecting subdued sentiment across sectors. At 14:30 IST, the S&P BSE Sensex fell by 211.60 points, or 0.29%, to 77,366.38. The Nifty 50 index declined 63.50 points, or 0.27%, to settle at 23,469.20, highlighting the market’s continued lack of momentum.

Pharma Sector Under Selling Pressure

The pharma sector remained under selling pressure, marking its fifth consecutive session of losses. The Nifty Pharma index declined by 0.63% to 21,615.20. Over the past five sessions, this index has dropped 4.11%, underscoring the challenges facing the sector. Stocks like Dr. Reddy’s Laboratories fell 2.11%, while Biocon and Cipla posted losses of 2.01% and 1.56%, respectively. These declines reflect weak investor confidence amidst a bearish market sentiment.

The Economic Times | MSN | The Nifty Pharma index declined by 0.63% to 21,615.20.

Broader Market Performance

In the broader market, mid-cap and small-cap indices also faced downward pressure. The S&P BSE Mid-Cap index shed 0.13%, while the Small-Cap index dropped by 0.53%. Negative market breadth further compounded the downturn, with 2,382 shares declining against 1,669 shares that gained on the BSE. This imbalance highlights broader market caution as investors remain wary of near-term risks.

Key Gainers and Losers in Pharma Stocks

Despite the negative trend, a few pharma stocks managed to edge higher. Ipca Laboratories saw an impressive gain of 3.12%, while Ajanta Pharma and Mankind Pharma rose 1.64% and 1.16%, respectively. However, these gains were overshadowed by significant losses across prominent names, including Glenmark Pharmaceuticals, Sun Pharma, and Zydus Lifesciences. The divergence in performance within the pharma sector reflects selective buying amidst overall bearishness.

Interest Rates and Currency Movements

On the macroeconomic front, bond yields rose, with India’s 10-year benchmark yield advancing to 6.935% from 6.827% in the previous session. The rupee strengthened marginally against the dollar in currency markets, trading at 84.3950 compared to its prior close of 84.4600. These movements signal cautious optimism in certain pockets of the financial markets despite challenges in equities.

Commodity Market Updates

In the commodities market, gold prices inched higher, with December 2024 MCX Gold futures rising by 0.70% to Rs 74,460. Crude oil also posted minor gains, with Brent crude futures adding $0.07 to trade at $71.11 a barrel. These modest increases indicate a steady demand environment in the global commodities space, even as equity markets falter.

Noris Soto | MSN | Gold prices increased, with December 2024 MCX Gold futures rising by 0.70% to Rs 74,460.

Stock-Specific Highlights

Hinduja Global Solutions (HGS) faced sharp declines, tumbling 7.45% after reporting a consolidated net loss of Rs 50.51 crore for Q2 FY25. The company had posted a net profit of Rs 18.43 crore in the same period last year. Revenue also fell 7.85% year-over-year, further weighing on investor sentiment. Conversely, Rail Vikas Nigam Limited (RVNL) announced a new project worth Rs 294.94 crore, but its stock dipped 1.04%, reflecting broader market trends.

Global Market Indicators

Globally, the US Dollar Index remained stable, dipping slightly by 0.02% to 106.66. Meanwhile, the United States 10-year bond yield added 0.50% to reach 4.451%. These figures, alongside stable crude oil prices, indicate a mixed global economic outlook. Investors continue to monitor developments in the US and other key markets for clearer directional cues.