Stock Market: Pharma tide sweeps through in sideways action
By S Jha
New Delhi, August 8: With the Monetary Policy Committee of the Reserve Bank of India set to announce the rate action on Thursday, the indices stayed in sideways mode with selling pressure coming at higher levels. Nifty closed the day with minor cut, while the Bank Nifty edged up helped by gains in PSU banks.
Market participants are claiming that the bourses may stay in the sideways mode until Nifty breaks out of the 19700 level. The Bank Nifty is trading much below its recent highs. The bourses were without the support of the moves in the heavyweights even while a select few sectoral leaders made gains in the sideways theme on the indices.
The IT sector, particularly the select largecap and midcaps, appears to be showing signs of strength. Tech Mahindra and Wipro from the largecaps made steady gains. Tech Mahindra on the back of the leadership level appointment has made a quick movement from the level of Rs 1100 to Rs 1200. Wirpo also has moved from sub Rs 400 level to Rs 415. There were gains in a select few midcap IT firms such as Coforge, LT Technology, Mphasis, and others. The smallcap IT firm Newage Software continues to rise.
But the real action is taking place in the pharma sector. The Gland Pharma, which is majorly owned by a Chinese firm, zoomed 20 per cent. Caplin Point Laboratory also rose by 11 per cent. Laurus Lab is also steadily rising, as the scrip further extended its gain. The leadership of the sector was given by Cipla, which gained over three per cent.
SBI Life, which had made an unsuccessful attempt a few days ago to break free of the Rs 1330 level to retrace to below Rs 1300 mark, on Tuesday came strongly to close at almost Rs 1350 level. Hero Motors on the back of the news of the good reception to its premium bike also rose strongly. The ban on import of laptops and other high-end electronics kicked Dixon Technology further up as the contract manufacturer made another handsome gains of over three per cent. The PSU Bank index is trending firm, with the Indian Bank rising sharply by over 10 per cent. The impact of the quarterly result is seen to be firm on Zen Technology as it rose again by 10 per cent.
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