Moneycontrol
Feb 16, 2017 09:41 PM IST | Source: Moneycontrol.com

IT, pharma stocks help Sensex rebound 146pts; Midcap outperforms

The broader markets outperformed benchmarks, with the BSE Midcap and Smallcap indices climbed 1.3 percent each on strong breadth. About two shares gained for every share falling on bourses.

IT, pharma stocks help Sensex rebound 146pts; Midcap outperforms

Moneycontrol Bureau


Equity benchmarks rebounded after two-day losses, with the Sensex rising more than 150 points intraday Thursday, driven by pharma sector after positive vibes from USFDA and technology stocks on buyback buzz.


The 30-share BSE Sensex gained 145.71 points at 28301.27 and the 50-share NSE Nifty rose 53.30 points to 8778 despite weakness in Europe.


The broader markets outperformed benchmarks, with the BSE Midcap and Smallcap indices climbed 1.3 percent each on strong breadth. About two shares gained for every share falling on bourses.


The Nifty may consolidate between 8,720 and 8,825 points for a few days, says Mitessh Thakkar of mitesshthakkar.com. Ashwani Gujral of ashwanigujral.com also says the Nifty will continue to remain choppy till it crosses the 8,820 mark as there seems to be no big money in the market.


Being at the fag end of the earning season, Indian markets would now take cues from RBI-FOMC minutes next week, Anand James of Geojit Financial Services says.



Infosys was the leading contributor to Sensex's rally, up 3 percent on hopes of share buyback from the company, especially after TCS announced that the board will consider share buyback on February 20. TCS gained 1.3 percent. The Nifty IT index rose 2 percent.


Healthcare stocks were biggest gainers, especially due to positive vibes from USFDA. The Nifty Pharma index jumped over 2.5 percent, led by Cadila Healthcare. The stock was locked at 20 percent upper circuit after the company said it did not receive any observations from USFDA for its formulation facility at Moraiya indicating successful resolution of the warning letter on the plant.


The rally also spilled over to other pharma stocks like Sun Pharma (up 4.3 percent), Aurobindo Pharma (up 3 percent) and Divis Labs (up 3.5 percent), which have exposure to US. Dr Reddy's Labs also rebounded 0.6 percent in late trade (after hitting a 52-week low intraday) as it got an unfavourable ruling in a US court regarding a patent infringement case over anti-nausea injection Aloxi.


State Bank of India gained 0.65 percent and its subsidiaries State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore rallied 3.5-4.7 percent after Cabinet's approval for merger plan.


Auto stocks rebounded on short covering after recent selling pressure. Tata Motors gained 2.14 percent and Maruti Suzuki rose 2.84 percent.


Bharat Forge shares rallied nearly 6 percent after signing agreement for joint venture company with Israel Aerospace Industries in defence segment. Reliance Infrastructure was up 1.7 percent as its subsidiary signed joint venture agreements with Dassault Aviation and Strata Manufacturing in defence segment.


Reliance Industries, Axis Bank, Tata Steel, Cipla and Wipro were other gainers, up 1-2 percent whereas ITC was biggest loser, down 2.45 percent followed by ICICI Bank, L&T, HDFC and HUL.

Markets in Europe were lower, with investors pausing for breath after fresh record closes on Wall Street in the previous session. France's CAC, Germany's DAX and Britain's FTSE were down 0.4 percent each at the time of writing this article.

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