Dear Trader…
Indian equity benchmarks continued their bull run for fourth straight session on Wednesday, with Sensex reclaiming the psychological 60,000 levels and Nifty ended above 17,900 mark. Markets made cautious start, amid concerns about increasing cases of the Omicron variant of COVID-19. Traders also remain worried with a private report indicated that growth might be impacted by up to 0.30 per cent in the March quarter as normal economic activities come under pressure due to restrictions being imposed by more states to curb rising Omicron cases.
Sentiments remained positive in the second half of the session, as commerce ministry is planning to launch Brand India Campaign to give momentum to exports of both services and products in new markets, as the country’s outbound shipments all set to cross $400 billion this fiscal year. This campaign would serve as an ‘umbrella campaign’ for promoting goods and services exported by India.
Nifty futures opened at 17840.00 points against the previous close of 17846.75 and opened at a low of 17786.00 points. Nifty Future closed with an average movement of 199.00 points and a rise of around 99.45 points and 17946.20 points...!!
On the NSE, the midcap 100 index will rise 0.15% and smallcap 100 index is closing decline 0.25%. Speaking of various sectoral indices only IT, Media anda Pharma stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, February gold opened at Rs.47982, fell from a high of Rs.47999 points to a low of Rs.47851 with a rise of 12 points, a trend of around Rs.47961 and March Silver opened at Rs.62105, fell from a high of Rs.62273 points to a low of Rs.61801, with a decline of 95 points, a trend of around Rs.62131.
Meanwhile, ratings agency ICRA in its latest report has said that the Indian pharma industry is estimated to grow at 9-11 per cent in 2021-22 and in the next few quarters, supported by gradual recovery post the impact of COVID-19. In a sample of 21 Indian pharmaceutical companies, it said revenue growth was moderate at 6.4 per cent in the second quarter of FY22, down from 16 per cent in the first quarter of 2021-22.
According to the report, the normalisation of the base and pricing pressures in the US market were the major reasons for slowing growth momentum in Q2 FY22, even as growth under domestic and emerging markets remained healthy. In FY22, the sample set is estimated to have witnessed growth of 13-15 per cent in the domestic market, 14-16 per cent in the emerging markets and 9-11 per cent in the European business. In the domestic market, it said a combination of steady normalisation in hospital footfalls and field force operations, given the relatively lower restrictions on account of COVID-19, continued traction in acute therapies and better pricing supported healthy revenue growth across companies.
Going forward, the ratings agency said sustenance of trend in doctor visits and elective surgeries given the news around the Omicron variant, and performance of new launches in addition to revenue growth momentum in the acute segment will remain key monitorables. It said the outlook for the pharma sector remains stable led by healthy revenue growth and margins. It expects the sample set's capital structure and coverage indicators to remain comfortable despite higher capex and R&D (research and development) expenses given the robust cash levels.
Technically, the important key resistances are placed in Nifty future are at 17979 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 18008 – 18088 levels. Immediate support is placed at 17878 – 17808 levels.
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