Defence, pharma stocks drive markets, Sensex gains 142 points

By: |
August 11, 2020 3:00 AM

While the Nifty crossed the 11,300 mark in early hours of trade, the 50-share index saw some of its gains fizzling out during the last hour of trade. Gains were capped because of profit booking on the benchmarks and negative sentiments over net outflows in equity mutual funds in July.

Foreign portfolio investors bought stocks worth $39.8 million on Friday.

Equities gained for the third straight session on Monday, with the Sensex rising 141.51 points or 0.37% to close at 38182.08 and the Nifty gaining 56.1 points or 0.50% to close at 11,270.15. Defence stocks rallied as the Ministry of Defence (MoD) issued an embargo on import of 101 types of defence equipment. What aided the markets’ rise were strong global cues.

While the Nifty crossed the 11,300 mark in early hours of trade, the 50-share index saw some of its gains fizzling out during the last hour of trade. Gains were capped because of profit booking on the benchmarks and negative sentiments over net outflows in equity mutual funds in July.

The Nifty Midcap was up by 1.30%, the highest in 5 months. The Nifty Smallcap gained 1.68%.

Pharmaceutical companies such as Divi’s Laboratories and Cipla announced better-than-expected results, which led to the Nifty Pharma index surging 5.37%.

Ambareesh Baliga, an independent market expert, said, “Pharma stocks have been underperforming for the last four years due to the USFDA overdrive. But now, as USFDA has gone soft, most of pharma majors will be able to get necessary clearances faster. With defence stocks also, this could be the beginning of a fresh up move…”

The MoD’s circular on import embargo led to the rally in defence-related stocks. Larsen and Toubro was up by 4.8%. Bharat Forge, Bharat Electronics and Hindustan Aeronautics were up between 3.13% and 8%.

Foreign portfolio investors bought stocks worth $39.8 million on Friday. They have so far pumped in $1.17 billion in August. The futures and options segment on the NSE saw a turnover of Rs 10.49 lakh crore, against the six-month average of Rs 14.9 lakh crore.

Major gainers on the Nifty were Cipla, M&M, L&T, Tata Motors and Sun Pharmaceuticals, up by 9.48%, 4.9%, 4.84%, 3.57%, and 3.45%, respectively. Major losers were Eicher Motors, Asian Paints, Maruti Suzuki, BPCL and Reliance Industries, down by 2.19%, 1.23%, 1.2%, 1.17%, and 1.16%, respectively.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Avenue Supermarts rating: Hold; Online scale-up a must for future
2Bharat Forge rating: Reduce; Opportunity in defence business is a positive
3Wall Street Week Ahead: Trump-Biden debate could spark stock volatility