Furious pharma lights up dark lanes of stock market

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Cipla & Sun Pharma lead bull run in pharma stocks

By S Jha

New Delhi, September 28: Bank Nifty went into a tailspin yesterday to drag the stock markets lower. Bank Nifty closed 543 points lower on Friday.

Nifty was marginally down. Broader markets posted handsome gains for the week.

The morning session on Friday began with frenzied actions in the IT counters. Accenture with its better guidance for the year had brought bulls chasing the Indian IT counters.

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Per trends in the past, Accenture sets the course for the IT stocks in India. Infosys and Tech Mahindra led the bulls’ charge on the street with sharp gains.

HCL Technology, Wipro, Birla soft, and others were in demand. But the bulls quickly got off the IT counters as well.

The quick ride of the bulls on the IT counters saw Infosys retracing almost four per cent from the day’s high. The same also held for other IT counters.

With IT counters retracing the day’s gains, the indices lost the steam. Nifty slipped into the red. Bank Nifty dived into the red most fiercely.

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Unlike the Thursday session, Bank Nifty was without the support of the banking heavyweights. On Wednesday, Axis Bank and HDFC Bank had lit the fireworks for the bulls on the street.

Yet, the Friday session wasn’t without actions. The pharmaceutical sector buzzed on the street.

Giants of the pharmaceutical sector lit the lamp posts on the street. Cipla and Sun Pharma were sharply higher. Both scrips gained almost four per cent.

The API maker Divi’s Laboratories was buzzing in the session. For past two years, the intermediary ingredient maker has been gaining grounds on the street. On Friday, Divi’s Laboratories touched levels of ₹5600.

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Sequent Scientific, another small cap pharmaceutical scrip, gained over 13 per cent. In the last five days, Sequent Scientific has gained over 20 per cent.

Global pharma giant Pfizer was also buzzing with gains of over seven per cent. P&G Health was also higher by six per cent.

Market participants note that sectoral shift is taking place in the stock market. With bourses at the peak, investors are taking positions in defensive stocks.

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Pharmaceutical per convention is seen as defensive stock sector in the market. But several of the pharma scrips have given over 100 per cent in the last one year.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company.

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