European stocks traded lower as traders await ECB policy rate decision due later in the day while Asian markets ended in the red after US Federal Reserve indicated more rate hikes going ahead. Japan’s Nikkei and Hong Kong’s Hang Seng were down 1 percent each while South Korea’s Kospi slipped 1.8 percent.
The US Federal Reserve raised interest rate by 25 basis points to a range of between 1.75 percent and 2 percent and indicated two more rate hikes in 2018. Back home, IT, Banking & Financials, FMCG and Infra stocks pulled the market lower while pharma sector outperformed.
Infosys slipped 2.75 percent after the stock price adjusted for dividend while TCS and Tech Mahindra shed 2 percent. Mindtree lost 3.5 percent after global research firm Citi downgraded the stock to Sell from Neutral but raised target price to Rs 970 from Rs 875 per share. The Nifty IT index was down 1.5 percent.
The Nifty Pharma index gained 1.8 percent. Siddharth Sedani, Head & Vice President – Equity Advisory, Anand Rathi Shares and Stock Brokers said pharmaceutical companies have broadly corrected a lot from their all time highs and are now available at reasonable valuations making them attractive to long term investors. Sun Pharma rallied 2 percent while Lupin gained 3 percent on getting approval from the USFDA for generic Drospirenone, Ethinyl Estradiol, Levomefolate Calcium tablets and Levomefolate Calcium tablets.
Alembic Pharma shares rose 3 percent on approval from US FDA for Doxycyclin Hyclate capsules USP (50 mg-100 mg).
Cipla was up 1 percent as the company has received approval for its abbreviated new drug application (ANDA) for Isoproterenol Hydrochloride Injection from the USFDA. In addition, Cipla’s Ugandan subsidiary Quality Chemical Industries is evaluating an initial public offering and Renaissance Capital (Kenya) Limited has been appointed as the official book runner.
Reliance Industries, which helped the market recover some losses in later part of the session, ended at record closing high of Rs 1,007.95 (up half a percent). Punj Lloyd shares plunged 11 percent after ICICI Bank has dragged the company to National Company Law Tribunal (NCLT) and pleaded to initiate proceedings under the Insolvency & Bankruptcy Code (IBC).
ICICI Bank, IOC, SBI, L&T, Adani Ports, Axis Bank, Titan Company and Vedanta were down 1-2 percent while Yes Bank and HCL Tech gained over a percent.
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