Pharma’s recovery dose

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Nifty50: 15,763 -15 (-0.1%)
Sensex: 52,586 -66 (-0.1%)

Although the bulls tried to take the markets higher, bears pulled it down toward the close of the session. Meanwhile, 27 of the Nifty50 stocks closed in the green. 

Among the Nifty sectoral indices, Pharma (+3.6%) and Media (+1.9%) were the top gainers, whereas Metal (-0.7%) and PSU Banks (-0.3%) lost the most. 

Top gainers Today's change
Sun Pharma ▲ 10.0%
Tech Mahindra ▲ 7.0%
Cipla ▲ 4.2%


Top losers Today's change
Bajaj Finance ▼ 2.6%
Bajaj Finserv ▼ 2.4%
Hindalco ▼ 2.2%

Here are the top stories of the day.

Sun Pharma soars on Q1 profit jump

Shares of Sun Pharma surged over 10% today to its 52-week high, after it posted robust results for the June quarter. The leading drug maker reported a consolidated net profit of ₹1,444 crore as compared to a loss of 1,655 crore in the same period last year. The growth was supported by a 28% YoY rise in revenues to ₹9,719 crore.

The company’s India branded sales (34% of total sales) were up 39%, while its US sales (29% of sales) were up 35%. It also said that it has repaid debt of about $185 million (₹1,376 crore) in Q1FY22. Boosted by the strong performance, the stock rallied to its highest level in nearly five years.

Second wave hurts Oberoi Realty

The Mumbai-based real estate developer’s consolidated net profit dropped by 71% sequentially to ₹80.6 crore. This sharp fall in profit was driven by a 64% QoQ decline in the revenue to ₹284 crore. The company wasn’t able to maintain the growth momentum of the March quarter due to the second wave.

Bookings also declined sharply to 0.92 lakh sq ft in June 2020 from 10.6 lakh sq ft in June 2020. However, the company is optimistic that the market share of reputed players like itself will grow as the real estate sector is undergoing consolidation. Meanwhile, shares of the company were down 2.7% today. 

Raymond’s loss narrows in Q1

In Q1FY22, textile-to-realty player Raymond’s net loss narrowed to ₹157 crore as compared to a ₹242 crore loss in Q1FY21. On a low base of June 2020, the revenue rose by 289% year-on-year to ₹862 crore, which helped in trimming the losses. 

However, the company’s operating expenses also rose by 26% in the same period. The company said that it is cautiously optimistic about the consumer demand picking up with festivals and the wedding season coming up. Shares of the company were down 2.8% today.   

Closing bell

The market is clearly torn between the bulls and bears. It has been flattish for eight weeks now. While it doesn’t give traders any directional cues the good part is that the economy is gradually unlocking. Several businesses are expected to resume normal operations and come back on a growth path. Meanwhile, few major data releases such as RBI’s interest rate decision and PMI data are expected next week. Further, reports suggest that as many as 18 IPOs are lined up in August with 4 companies opening their public issues from August 4. Investors could be spoilt for choice.

Good to know

What is a stop-loss order?
A stop loss order refers to an order to buy or sell a stock when it reaches a specific price limit. This order is placed in advance. It is typically used to exit a position in an unfavourable trade and thus helps in limiting the loss. Assume that a trader buys a stock at ₹300 and places a stop loss at ₹280. His/her loss will be limited to ₹20 per share in case the stock starts falling. Professional traders also use a stop loss buy/sell order to enter a fresh position when price crosses a certain limit, referred to as a trigger price.

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Disclosures and Disclaimer

Investment in securities markets is subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.