NIFTY50: 19,331 ▼ 165 (-0.8%)
SENSEX: 65,280 ▼ 505 (-0.7%)
Namaste, friends!
Chocoholics rejoice! Today is World Chocolate Day, dedicated to the thing that makes any moment better! However you like it—dark, milk, white, or infused with flavours—chocolate has a special place in our hearts and taste buds. So, grab your favourite cocoa-infused treat while glancing at the markets, which took a break after a record rally. More on that later.
- Markets ended the week on a low note, halting their record winning streak
- In all, 44 of the NIFTY50 stocks closed in the red
- India’s forex reserves rose by $1.9 billion to $595.1 billion, as on 30 June
Among the NIFTY sectoral indices, Media (+3.9%) and PSU Bank (+0.9%) were the top gainers, while FMCG (-1.5%) and Realty (-1.1%) were the top losers.
| Top gainers | Today's change |
| Tata Motors | 622 ▲ 22 (+3.6%) |
| Titan | 3,144 ▲ 37 (+1.2%) |
| M&M | 1,561 ▲ 12 (+0.7%) |
| Top losers | Today's change |
| Adani Ports | 719 ▼ 20 (-2.7%) |
| Power Grid | 255 ▼ 7.2 (-2.7%) |
| Apollo Hospitals | 5,151 ▼ 131 (-2.4%) |
What’s trending
⭐ Titan rises after strong Q1 update
Watchmaker and jeweller Titan’s shares were up by 1.2% after the company recorded revenue growth of 20% in Q1 FY24. The jewellery segment sales grew by 21% year-on-year (YoY), while the watches and wearables segment grew by 13% YoY. The company added 68 stores during the quarter, which took the company’s total stores to 2,778 across the country.
⭐ Liquor stocks trade lower
Shares of leading liquor stocks, including United Breweries (-3.0%), Som Distilleries (-3.1%) and Radico Khaitan (-2.1%) traded under pressure on Friday. This comes after Karnataka state government proposed a hike in excise duty on liquor. Excise duty on Indian-made foreign liquor is likely to be hiked by 20%, while a 10% hike is proposed on beer. Investors could be wary that other states may follow suit.
⭐ Kalyan Jewellers shares upbeat Q1 update
Kalyan Jewellers soared by over 4% after the company announced an upbeat Q1 business update. It said that its consolidated revenue for Q1 FY24 grew 31% percent YoY. Further, the company opened 12 new showrooms during the quarter. As of June 30, the company has 194 showrooms across India and the Middle East.
⭐ Subros jumps after govt mandates ACs in trucks
Shares of automotive AC maker Subros jumped by almost 6% after the Central Government approved the draft notification mandating the installation of AC systems in truck cabins. The regulation will be implemented in January 2025. Subros’ overall market share in the domestic automotive AC compressor segment is 15.4% with a capacity of 1.5 million AC kits per year.
In Focus
Pharma stocks in limelight
Shares of pharma companies seem to be gaining strong traction in the current financial year. So far in FY24, NIFTY Pharma has outperformed the NIFTY50, with a 14.3% jump compared to the 11.1% rise in the latter. Pharma majors like Sun Pharma, Lupin and Zydus Lifescience have been top gainers in the sector and are trading close to their 52-week highs. What are the key reasons behind this rally? Let’s find out.
New drug approvals
Recent high-value product approvals received from the USFDA have boosted pharma stocks. For instance, Lupin recently received approval for a generic drug which has estimated annual sales of $1,264 million in the US market, while Zydus Lifescience also received multiple approvals from USFDA. As per experts, these product approvals are expected to give an incremental boost to revenue in coming quarters.
Lower price erosion
Besides this, lower price erosion in the US market will also benefit the industry. During the Covid-19 pandemic, oversupply of medicines in the US eroded the pricing power of pharma companies, leading to lower margins and profitability. However, strict actions by the USFDA led to curb on price erosion and provided relief to pharma companies.
New business opportunity
Furthermore, in the next four years, multiple drugs with a cumulative value of $75 billion are scheduled to go off-patent. This offers new business opportunities to major players, especially those having significant exposure to the US markets.
Supported by the above factors, pharma stocks seem to be in the pink of health. Having said that, investors should keep a close eye on the USFDA actions, especially on company-specific warnings on manufacturing facilities, which could have a negative impact on the sector.
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