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Indian Share Market Update: Key Developments and Top Buzzing Stocks
Synopsis: The Indian share market closed higher on Thursday despite volatility from F&O expiry, with the BSE Sensex rising 141 points and NSE Nifty gaining 51 points. Top gainers included Hindalco, BPCL, and Adani Ports, while NTPC, M&M, and Wipro saw losses. The MidCap and SmallCap indices also increased. Notable stock movements included Suzlon's surge following a significant block deal and Blue Dart Express's gains due to its drone delivery launch. Emcure Pharmaceuticals received SEBI approval for its IPO, and Biocon seeks a Chinese partner for trials of generic diabetes and weight loss drugs. The rupee fell sharply to 83.61 against the US dollar amid rising crude prices and geopolitical tensions. Investors are advised to monitor these market dynamics closely.
MARKETSINDIA
By Sameer Malhotra
6/21/20243 min read
The Indian share market maintained its positive momentum throughout Thursday’s trading session, ending on a high note despite volatility driven by the weekly futures and options (F&O) expiry. Investors witnessed a tug-of-war between gains and losses, ultimately leading to a modest increase in benchmark indices.
Market Performance and Indices Movement
At the closing bell on Thursday, the BSE Sensex rose by 141 points, a 0.2% increase, while the NSE Nifty climbed 51 points, marking a 0.3% rise. Despite these gains, the Gift Nifty showed a flat indication in the opening market, trading at 23,597.
Top Gainers and Losers
Among the top gainers were Hindalco, BPCL, and Adani Ports. Conversely, NTPC, M&M, and Wipro were among the top losers for the day. For a detailed impact analysis of the Bank Nifty companies.
MidCap and SmallCap Indices
The BSE MidCap index ended 0.6% higher, while the BSE SmallCap index saw a 1% increase. Sectoral indices presented a mixed bag: the metal, realty, and oil & gas sectors experienced significant buying interest, while the auto, telecom, and media sectors faced selling pressure.
Commodity Market Update
Gold prices for the latest MCX contract were trading 0.4% higher at Rs 72,047 at the close of Indian market hours on Thursday.
Top Buzzing Stocks Today
Suzlon
Suzlon’s share price will be in focus today. The shares hit the upper circuit in the morning trade on June 20, after a block deal worth Rs 1.8 billion saw around 37 million shares (or 0.3% equity) of the wind energy player being exchanged.
Blue Dart Express
Blue Dart Express shares surged up to 2.5%, reaching Rs 8,049 apiece on June 20 following the company’s announcement of launching drone deliveries in collaboration with Skye Air. This initiative marks a significant step towards cleaner and more efficient delivery solutions.
Emcure Pharmaceuticals Receives IPO Approval
Maharashtra-based Emcure Pharmaceuticals has received the green light from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO). The IPO, expected to launch in July, includes a fresh issue of equity shares worth Rs 8 billion and an offer-for-sale (OFS) of 13,678,839 equity shares by existing shareholders, including promoters.
Prominent promoters and shareholders involved in the OFS are Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, Pushpa Rajnikant Mehta, Bhavana Satish Mehta, Kamini Sunil Mehta, BC Investments IV, Arunkumar Purshotamlal KhannaI, Berjis Minoo Desai, and Sonali Sanjay Mehta.
Emcure plans to utilize Rs 6.4 billion from the fresh issue proceeds to repay its debt, with the remaining funds allocated for general corporate purposes. Competing with major pharmaceutical players like Dr. Reddy’s Labs, Cipla, Alkem Labs, Torrent Pharma, Mankind Pharma, and Abbott India, Emcure aims to strengthen its financial position through this IPO.
Biocon Eyes China Trials
Indian biopharmaceutical giant Biocon is seeking a partner in China to conduct clinical trials for generic versions of Novo Nordisk’s popular diabetes drug Ozempic and weight loss treatment Wegovy. Biocon aims to launch these generic injectables globally, and securing a Chinese partner would facilitate trials on over 500 patients, enabling entry into the world’s second-largest economy.
China, with its rapidly growing number of overweight and obese adults projected to reach 540 million and 150 million respectively by 2030, presents a lucrative market. The high demand for Ozempic and Wegovy has significantly boosted Novo Nordisk’s market value, and Biocon’s entry could intensify competition.
Rupee Plunges Amid Surging Crude Prices
The Indian rupee experienced a sharp decline, plunging 17 paise to settle at an over two-month low of 83.61 against the US dollar on Thursday. This fall was primarily attributed to surging crude oil prices driven by renewed geopolitical tensions in the Middle East. Despite the positive momentum in domestic equity markets and foreign capital inflow, the rupee could not withstand the pressure from a strong American currency.
During the trading session, the rupee touched an all-time low of 83.68 against the dollar, before finally settling at 83.61. This significant drop followed a marginal decline of 1 paise in the previous session.
In Conclusion, The Indian share market continues to navigate through a mix of positive and negative trends, with various sectors showing varied performance. While some stocks like Suzlon and Blue Dart Express are buzzing with positive developments, others like Emcure Pharmaceuticals and Biocon are making strategic moves in the market. Amidst these developments, the rupee’s performance remains a critical point of concern, influenced by external factors like crude oil prices and geopolitical tensions.
Investors should keep a close watch on these dynamic market conditions and strategic corporate moves to make informed investment decisions.