Nifty Pharma surged over 3.5 per cent led by Torrent Pharma, Aurobindo Pharma, Cadila Healthcare and Sun Pharma
Amid high volatility, the swing continued throughout the session with the benchmarks moving frequently between gains and losses in the first half of the Friday’s trade and then finally settled in the negative territory. Sensex fell 129 points or 0.34 per cent to close at 37,607, while the NSE’s Nifty was down 29 points or 0.26 per cent to close at 11,073.45. Index heavyweights such as Reliance Industries (RIL), HDFC Bank, HDFC, Kotak Mahindra Bank and Asian Paints contributed the most to the indices’ losses. “In India, the uncertainty was visible as profit booking and post-earnings results performance of index heavyweights, impacted the benchmark indices. On a weekly basis, the indices closed with slight losses following results- heavy week and stock-specific action in the benchmark indices while at the same time virus infections continued to increase,” said Vinod Nair, Head of Research at Geojit Financial Services.
RIL, HDFC Bank drag: Among top Sensex laggards were RIL, HDFC Bank, Kotak Mahindra Bank, Bajaj-Auto, Asian Paints and HDFC. On the flip side, Sun Pharma was the top index gainer which gained over 4 per cent, followed by State Bank of India (SBI), M&M, HCL Tech, Axis Bank, ONGC and Tech Mahindra.
Nifty Financial Service top loser: Nifty Pharma surged over 3.5 per cent led by Torrent Pharma, Aurobindo Pharma, Cadila Healthcare and Sun Pharma. On the other hand, Nifty Financial Service fell 0.61 per cent dragged by losses in Cholamandalam Investment and Finance Company, ICICI Lombard General Insurance Company, and HDFC Bank.
SBI Q1 profit surges 81%: State Bank of India reported an 81 per cent on-year rise in standalone net profits at Rs 4,189 crore for the April-June quarter. from Rs 2,312 crore in the corresponding quarter of the previous fiscal. SBI shares gained over 2.5 per cent.
India VIX falls 3%: India VIX opened at 24.7 on Friday and went down till 23.9 mark. However, the high of the volatility index was at 25.3. It closed at 2.78 per cent down at 24. This volatility kept Friday’s trade range-bound.
Broader markets: Broader markets outperformed equity benchmarks. BSE MidCap index gained 49.39 points or 0.36 per cent to close at 13,759. while the BSE SmallCap index surged 105.4 points or 0.82 per cent to settle at 13,021.7.
Next week expectations by Jimeet Modi, Founder & CEO Samco Group
It is now in the hands of RBI to further lubricate the economy either by a decent rate cut or policy initiatives. Their stance on the moratorium or onetime restructuring (COVID-19) will set the tone for the entire financial sectors for weeks ahead. In general, Bank Nifty has underperformed and pessimism continues to run high. Therefore, any move by RBI will create short term volatility in the banking stocks. Yes Bank’s capital raising was not lauded by the market as expected and hence it can be concluded that capital hungry sectors will remain under pressure going ahead. Investors are advised to remain cautious and partly book profits. They should wait for a sharp correction before making any fresh bets.