Market Commentary - Mid-Session
Sensex slides 116 pts; pharma shares under pressure As on : 30-Oct-24  11:32

The equity benchmarks pared some losses and traded near the flatline in mid-morning trade. The Nifty traded below the 24,450 mark. Pharma shares extended losses for the second trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was down 116.24 points or 0.15% to 80,258.88. The Nifty 50 index lost 23.50 points or 0.10% to 24,443.35.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.30% and the S&P BSE Small-Cap index added 1.40%.

The market breadth was strong. On the BSE, 2,873 shares rose and 796 shares fell. A total of 123 shares were unchanged.

Economy:

The Indian diaspora's confidence in the Indian economy has soared, as evidenced by the significant increase in Non-Resident Indian (NRI) deposits. According to the Reserve Bank of India's (RBI) latest monthly bulletin, inflows into NRI deposit schemes surged to $7.82 billion in the period of April-August 2024, more than double the $3.74 billion recorded in the same period last year.

Both dollar-denominated (FCNR(B)) and rupee-denominated (NRE(RA)) deposits witnessed substantial growth.

Among the various NRI deposit schemes, Foreign Currency Non-Resident (FCNR) deposits witnessed the highest inflow, attracting $3.47 billion during the period, compared to $1.55 billion in the corresponding period a year ago. These deposits, denominated in foreign currencies, offer security against currency fluctuations and provide attractive returns.

Non-Resident External (NRE) deposits, which are rupee-denominated accounts, also saw a significant increase, with inflows of $2.51 billion during this period, compared to an inflow of $868 million in the corresponding period a year ago.

Non-Resident Ordinary (NRO) deposits, which are also rupee-denominated, also saw inflows worth $1.84 billion from April泡ugust, 2024, compared to $1.32 billion during the same period a year ago.

This surge can be attributed to factors such as attractive returns in Indian markets, strong economic fundamentals, and a more stable domestic monetary policy environment compared to many global economies.

With total outstanding NRI deposits reaching $158.94 billion as of August 2024, the Indian diaspora's continued trust in the country's economic prospects is evident.

Buzzing Index:

The Nifty Pharma index fell 0.70% to 22,443.75. The index slipped 1.80% in the past two trading session.

Cipla (down 3.78%), Torrent Pharmaceuticals (down 2.32%), Dr Reddys Laboratories (down 1.66%), Alkem Laboratories (down 1.57%), Sun Pharmaceuticals Industries (down 1.15%), Zydus Lifesciences (down 0.9%), Lupin (down 0.78%), Ipca Laboratories (down 0.56%), Laurus Labs (down 0.54%) and Biocon (down 0.44%) edged higher.

On the other hand, Mankind Pharma (up 3.91%) ,Natco Pharma (up 2.15%) and Divis Laboratories (up 1.17%) edged higher.

Stocks in Spotlight:

Deepak Fertilizers & Petrochemicals Corporation declined 1.24%. The company's consolidated surged 237.38% to Rs 214.07 crore on 13.31% increase in revenue from operations to Rs 2,746.72 crore in Q2 FY25 over Q2 FY24.

Prestige Estates Projects added 2.79%. The company reported 77.41% decrease in consolidated net profit to Rs 192.20 crore in Q2 FY25 as against Rs 850.90 crore recorded in Q2 FY24. Revenue from operations grew 3.04% year on year (YoY) to Rs 2,304.40 crore in the quarter ended 30 September 2024.

Paras Defence and Space Technologies was locked 5% upper circuit after the company announced that it has received an order from Opto Electronics Factory valued at approximately Rs 42.05 crore. The contract is for the supply of 5 types of electronic control sub-systems used in thermal imaging fire control system (TIFCS) delivered by OLF to Indian Armed Forces.

Global Markets:

Asian stocks fell on Wednesday as risk appetite was quashed by anticipation of a tight U.S. presidential election and a barrage of key economic readings this week.

Japanese markets remained the outliers, extending recent gains as heightened political uncertainty in the country fueled more bets that the Bank of Japan will not raise interest rates further.

In the US, indices marked a mixed close on Tuesday, as investors piled into technology stocks, but avoided most other sectors. The NASDAQ Composite rose 0.8% to a record-high close of 18,717.58 points, while the S&P 500 rose 0.2% to 5,832.92 points. But the Dow Jones Industrial Average lagged, falling 0.4% to 42,233.05 points.

Sentiment was underpinned by strong earnings from Alphabet Inc. Tech majors Meta Platforms Inc and Microsoft Corporation are set to report on Wednesday, while Amazon.com Inc and Apple Inc are due on Thursday.

A slew of key U.S. economic readings are also due in the coming days, while the Federal Reserve is set to meet next week. Third-quarter gross domestic product data is due on Thursday, while PCE price index data- the Federal Reserve's preferred inflation gauge- and nonfarm payrolls data are due on Friday. The three readings are likely to factor into the outlook for interest rates, and come before a Fed meeting next week where the central bank is widely expected to cut rates by a smaller 25 basis points.

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