Infra stocks rally lift markets, pharma companies lose
The BSE Sensex closed at 20286.12, up 0.19 percent and Nifty closed at 6187.30, up 0.28 percent.
The Indian market ended slightly up today as a late rally in infrastructure stocks offset a decline in pharmaceutical companies.
The BSE Sensex closed at 20286.12, up0.19 percent and Nifty closed at6187.30, up0.28 percent.
Drugmakers fell after the Indian government formally notified a new drug pricing policy designed to increase the number of drugs deemed essential that are subject to price caps.
The BSE Healthcare Index fell0.39 percent with Ranbaxy Laborataries down3.65 percent, Glenmark Pharma down 0.90 percent andDr Reddy's Laboratories down 1. 80 percent.
ABB was the star performer of the day as the stock surged more than 20 percent, closing at Rs 660.15 on heavy volumes. The volumes shot up by more than 30 times compared with the average daily volume. The sharp movement in ABB lifted other capital goods stocks as well.
Shares like Alstom India, Alstom T&D, BEML and Cromtpon Greaves were up 9 to 11 percent.
Meanwhile, Finance Minister P Chidambaram has said that India offers "unlimited" opportunities for investment in infrastructure sector as the country needs more roads, airports and seaports. "What I am telling the investors here and the government here is that there is a huge opportunity in India, especially in infrastructure," he told at a conference in London.
Cigarettes to hotels companyITC closed at 334.70, down2.10 percent on less-than-expected profits. The company's fourth quarter net profit rose 19 percent year on year to Rs 1,928 crore, helped especially by strong growth in the other FMCG and agri businesses.
JM Financial closed at26.70, up 13. 38 percent after ex-Citi CEO Vikram Panditand Hari Aiyar announced that they will each buy 1.5 percent stake inJM Financial.
Ratings agency Standard & Poor's affirmed India's sovereign rating at "BBB-minus" with a "negative" outlook, reiterating there was one-in-three chances of a ratings downgrade over the next 12 months.
S&P said the government's ability to prop up investment growth remained uncertain. S&P's statement is likely to hurt investor sentiments.
The ratings agency, however, said there was scope to upgrade the sovereign ratings if the government unleashes public and private investments to spur economic growth.
Concerns have risen among investors as COVID-19 cases continue to surge in China
Globally risk aversion and volatility gripped markets after the US Federal Reserve hiked interest rate
Domestic markets ended in negative for the sixth consecutive session. Investors remain cautious over rising inflation levels as retail inflation rose to 7.79 percent by April end