The Indian stock market surged to new heights as the Sensex crossed 70,000 and the Nifty 50 hit a record 21,019.80 points in early trade. However, the upward trend was curbed by a drop in pharma stocks post the US FDA's critical remarks on Dr. Reddy's Labs following an inspection in Hyderabad.
By mid-morning, the BSE Sensex climbed 0.32% to breach 70,048, while the NSE Nifty 50 rose 0.24% above 21,019 points. Dr. Reddy's Laboratories faced a significant setback, plunging 6% and becoming the top loser on the Nifty 50 due to the FDA's adverse report.
Pharma stocks collectively fell about 1%, primarily driven by this decline. Meanwhile, the oil & gas segment experienced a 0.75% increase attributed to declining Brent Crude futures, now at approximately $76.50 per barrel. India's heavy reliance on crude imports ensures a positive impact on both oil companies and economic fundamentals with this price decrease.
Public sector banks saw a notable 1.6% increase during this market fluctuation.
Key Points:
1. Sensex and Nifty hit record highs, with Sensex crossing 70,000 and Nifty touching 21,019.80 points in morning trade.
2. Pharma stocks, notably Dr. Reddy's Labs, faced a setback post adverse comments from the US FDA after inspecting a facility in Hyderabad, causing a 6% decline.
3. This decline led to a 1% fall in the overall pharma sector, with Dr. Reddy's emerging as the top loser on the Nifty 50 list.
4. Conversely, the oil & gas segment surged by 0.75% due to declining Brent Crude futures, which hit around $76.50 per barrel.
5. India's heavy reliance (over 80%) on imported crude oil made this price drop beneficial for both oil companies and the country's economic fundamentals.
6. Public sector banks saw a rise of 1.6% during the trading session.
7. The market initially soared to unprecedented levels before facing fluctuations later in the day due to specific sectoral performances.
8. External factors, like the US FDA's commentary impacting individual stock movements, contributed to the fluctuations.
9. The day showcased both highs and lows, highlighting the market's sensitivity to sector-specific news and global factors.
10. Despite the setbacks, the market retained a positive outlook, with sectors like oil & gas and public sector banks displaying upward movements amidst the fluctuations.
(With Agency Inputs)
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