Pharma Shares Lead Declines as Barometers Stay Rangebound

The equity markets faced modest losses as pharma shares declined for the fifth consecutive session. By mid-afternoon trade, the S&P BSE Sensex dropped 211.60 points, or 0.29%, to 77,366.38, while the Nifty 50 fell 63.50 points, or 0.27%, to 23,469.20. Market breadth remained negative, reflecting broader selling pressure across sectors.

Pharma Shares See Sustained Pressure

The Nifty Pharma index declined 0.63% to 21,615.20, extending its five-day losing streak with a cumulative drop of 4.11%. Notable laggards included Dr. Reddy’s Laboratories, which was down 2.11%, and Biocon, which fell 2.01%. Cipla, Glenmark Pharmaceuticals, and Sun Pharmaceutical Industries also witnessed losses ranging from 1.08% to 1.56%. In contrast, Ipca Laboratories rose 3.12%, supported by positive investor sentiment, while Ajanta Pharma gained 1.64%.

The pharma sector has been under pressure due to weak earnings and global economic uncertainty. Despite some upward movement in select stocks, the index’s consistent losses reflect a lack of market confidence in the sector’s short-term growth.

The Economic Times | MSN | The Nifty Pharma index declined 0.63% to 21,615.20, extending its five-day losing streak with a cumulative drop of 4.11%.

Broader Market Trends

The S&P BSE Mid-Cap index slipped 0.13%, and the Small-Cap index fell 0.53%, indicating weakness beyond large-cap stocks. Declines outpaced advances, with 2,382 shares falling and only 1,669 gaining on the Bombay Stock Exchange (BSE). A total of 141 shares remained unchanged, underscoring a cautious sentiment among investors.

The negative market breadth reflects multiple sectors’ challenges, driven by global headwinds and domestic economic pressures. The muted activity in mid-and small-cap segments suggests risk aversion among retail investors.

Key Market Indicators

The yield on India’s 10-year benchmark federal paper advanced to 6.935%, up from the previous close of 6.827%. Higher bond yields typically signal investor caution, as they indicate rising borrowing costs for the government. Meanwhile, the rupee edged higher against the US dollar, hovering at 84.3950 compared to the prior session’s close of 84.4600.

In commodities, MCX Gold futures rose 0.70% to ₹74,460, reflecting heightened demand for safe-haven assets. Brent crude oil gained marginally, adding 7 cents to trade at $71.11 per barrel. The slight uptick in crude prices was insufficient to impact equity market sentiment significantly.

India | MSN | The yield on India’s 10-year benchmark federal paper advanced to 6.935%, up from the previous close of 6.827%.

Global Influences on Market Performance

The US Dollar Index (DXY), which measures the greenback’s strength against a basket of major currencies, declined slightly by 0.02% to 106.66. The United States 10-year bond yield also rose, adding 0.50% to 4.451%. These movements suggest ongoing concerns about global economic conditions and inflationary pressures, which continue to impact investor sentiment worldwide.

Domestic markets are mirroring these global trends, as rising yields and fluctuating currency values create an uncertain environment. Investors are closely monitoring international developments to learn about market direction.

Stock-Specific Developments

Among individual stocks, Hinduja Global Solutions (HGS) tumbled 7.45% after reporting a consolidated net loss of ₹50.51 crore in Q2 FY25. This compares to a net profit of ₹18.43 crore in the same period last year. Revenue also slipped 7.85% year-over-year to ₹1,087.15 crore.

Rail Vikas Nigam Limited (RVNL) declined 1.04% after announcing a ₹294.94 crore construction project from South Central Railway. Despite the new project, the company’s stock fell, reflecting broader market sentiment rather than sector-specific concerns.