Cohance Surges Nearly 14% to Rs 461.35, Leads Mid-Small Healthcare Rally on Tuesday

Mumbai, June 23: Even as Nifty 50 eased fractionally on Tuesday, we saw three areas of the market telling us something interesting: mid- and small-cap healthcare stocks jumped on a broad pharma revival spurred by calming geopolitical risk and visibility of strengthening domestic demand; selective buying in a few FMCG stocks as buyers took positions despite a weak sectoral bias; and, finally, a small cluster of auto ancillary and two-wheeler stocks holding up against a falling Nifty Auto index. In aggregate, we saw investors rotating into defensives and domestic consumer plays even as selling in technology and metals continued. 

Mid- Small Healthcare: The move is broad and powerful 

Our favorite piece of market action came from the Nifty Midsmall Healthcare index, which ended the day 1.13% higher at 49,325.15. This strong move was broad-based across pharma, hospital and specialty drug stocks. With crude oil prices stabilizing lower, input cost pressures ease for API and formulation manufacturers. And with US granting Iran a 60-day sanctions waiver, the geo-political risk parameter has reduced significantly, opening up the gates for fresh institutional investors to dip their toes into defensive pharma stocks. What’s impressive about today’s move is its breadth. You had more than a dozen stocks across the index trading meaningfully higher, suggesting conviction in today’s move rather than a flash in the pan. 

Session superstar COHANCE (Cohance) jumped 13.84% to Rs 461.35 from Rs 405.25 on heavy volumes of 2.40 crore shares. NEULANDLAB (Neuland Laboratories) climbed 4.92% to Rs 18,071.00 from Rs 17,224.00 as stocks continued to witness buying interest in the CDMO and API theme. GLAND (Gland Pharma) advanced 4.57% to Rs 2,286.70 from Rs 2,186.70 as injectable focused stocks continued to see fresh buying interest. AUROPHARMA (Aurobindo Pharma) rose 2.82% to Rs 1,534.00 from Rs 1,491.90 completing a tidy top-4 from this index. 

FMCG: Select Counters Defy a Weak Index 

The Nifty FMCG index was down 0.45% at 49,130.80 on the day, weighed by broad-based selling in larger names, but a cluster of stocks within the index was swimming against the tide. Domestic rural demand resilience and the prospect of lower commodity costs following the crude oil slide are providing a floor for select consumer staples names even as urban sentiment remains cautious. The gainers within FMCG were concentrated in beverages and personal care, where recent earnings momentum has been relatively stronger. 

Marico (MARICO) led FMCG gainers with a 0.78% advance to Rs 818.80 from a previous close of Rs 812.45, supported by improving margin visibility on easing input costs. United Breweries (UBL) added 0.69% to Rs 1,349.00 from Rs 1,339.70, continuing its steady climb on consumption recovery themes. Britannia Industries (BRITANNIA) rose 0.44% to Rs 5,240.50 from Rs 5,217.50, while Godrej Consumer Products (GODREJCP) edged up 0.19% to Rs 1,021.40 from Rs 1,019.50, rounding out the four gainers within an otherwise subdued sector. 

Auto: Bharat Forge Leads as Fuel Cost Relief Supports Sentiment 

The Nifty Auto index was down 0.51% at 26,568.55 overall, but a small group of stocks within the sector was moving higher on the back of sharp crude oil declines that reduce fuel costs for consumers and compress input costs for component makers. Positive rural demand signals and strong two-wheeler order books are also providing selective support even as commercial vehicle and passenger car volumes remain under watch. The gainers were led by an auto ancillary and premium vehicle names rather than mass-market OEMs. 

Bharat Forge (BHARATFORG) was the top auto gainer, climbing 1.32% to Rs 2,131.50 from a previous close of Rs 2,103.80, hitting a fresh 52-week high of Rs 2,152.80 in intraday trade as export and defence order optimism drove buying. Maruti Suzuki (MARUTI) edged up 0.12% to Rs 13,437.00 from Rs 13,421.00, holding well given the weak broader index. Eicher Motors (EICHERMOT) gained 0.12% to Rs 7,649.00 from Rs 7,639.50, while UNO Minda (UNOMINDA) also advanced 0.12% to Rs 1,118.00 from Rs 1,116.70, reflecting quiet accumulation in the auto components space. 

Sources: 

• https://www.nseindia.com/market-data/live-equity-market?symbol=NIFTY%20MIDSML%20HLTH
• https://www.nseindia.com/market-data/live-equity-market?symbol=NIFTY%20AUTO
• https://www.nseindia.com/market-data/live-equity-market?symbol=NIFTY%20FMCG
• https://www.nseindia.com/market-data/live-market-indices