Pharma, IT and Energy Lift Markets as FMCG Bucks Trend

Mumbai, June 22: Indian equities closed higher on Monday, with gains spread across most sectors as easing crude oil prices and signs of progress in U.S.-Iran peace negotiations improved investor sentiment. Thirteen of the 16 major sectoral indices ended in positive territory, helping the benchmark indices recover from Friday’s weakness.  

The Nifty 50 rose 0.37% to close at 24,102.90, while the Sensex added 0.38%. The broader market also participated in the rally, with midcap and smallcap indices posting gains.  

Pharma Emerges as Top Performer 

Pharmaceutical stocks led the advance, driven by strong gains in Cipla after Citi reiterated its buy rating for the drugmaker, seeing a rebound in the company’s US business. Dr. Reddy’s Laboratories rose after Nomura maintained a buy rating, underscoring the firm’s increasing focus on branded generics and consumer healthcare. 

Sun Pharmaceutical Industries also rose after the firm said over the weekend it would buy Innovcare Lifesciences for about Rs 270 crore. 

IT Rebounds After Accenture-Led Selloff 

Nifty IT index bounced back as bargain hunters swooped on stocks after correction. Source: NSE  

Information technology shares recovered after coming under pressure in the previous session following weak demand commentary from Accenture. Stocks such as Tech Mahindra helped lift the Nifty IT index as investors used the recent correction to accumulate large-cap technology names. 

The rebound came despite lingering concerns over a hawkish U.S. Federal Reserve outlook, which continues to influence sentiment toward export-oriented sectors.  

Energy and Metals Gain on Softer Oil 

Energy shares advanced after crude oil prices eased below the $80-a-barrel mark amid encouraging progress in U.S.-Iran negotiations. Lower oil prices are generally viewed as positive for India’s macroeconomic outlook because they reduce pressure on inflation and the country’s import bill.  

Reliance Industries was among the key contributors to the benchmark gains, rising after investors assessed announcements from its annual general meeting, including updates on artificial intelligence initiatives, Jio Platforms and new energy businesses.  

Metal stocks also traded higher as Vedanta along with its spinoffs lifted the sectoral index. To be sure, all Vedanta spinoffs had surged 5% and frozen in the upper circuit earlier today except Vedanta Aluminium Metal which lagged before spiking and freezing towards the end of trade.   

FMCG and Consumer Durables Under Pressure 

Nifty FMCG index played spoilsport on a day when most other indices chose to party. Source: NSE    

In contrast, FMCG and consumer durable stocks emerged as the only notable laggards. Asian Paints, Titan, Nestlé India and Trent featured among the major losers on the Nifty as investors shifted toward sectors offering stronger near-term earnings momentum. 

Broader Market Participation Remains Healthy 

The market’s breadth underscored the strength of the rally. Media, auto, pharma, IT, energy and metal indices all finished in the green, while midcap and smallcap stocks continued to attract buying interest.  

Analysts said sectoral trends in the coming sessions will likely remain tied to developments in the Middle East, movements in crude oil prices and foreign investor flows. 

Source

• NSE