Pharma Stocks Outshine PSU & Energy Stocks on BSE, NSE

Mumbai, July 8: Stocks remain a stock- and-sector picker’s market at current levels. Pharmaceutical stocks are outperforming the broader market as buying continues to be broad-based on the Nifty Pharma index. Investors are rotating into defensives even as the broader markets trade mixed. Public sector stocks and energy stocks, on the other hand, are seeing selling pressure with both the Nifty PSE and Nifty Energy indices trading in the red led by deep corrections in oil marketing companies. Here’s why are these themes moving the way they are and which stocks to watch on each theme.

PHARMACEUTICALS

The Nifty Pharma index is trading 0.35% higher at the moment, making it the best performing sector so far on Wednesday. Purchases are broad-based across large caps as well as mid-caps as investors pare risk and buy pharma stocks into defensives on a mixed broader market and also in view of the upcoming June- quarter earnings season. JB Chemicals, Torrent Pharma and Zydus Lifesciences are surging at the forefront while Divi’s Labs and Lupin are also seeing good buying interest.

• JB Chemicals Shares (JBCHEPHARM): Rs 2,462.60, up 1.68% from Rs 2,422.00
• Torrent Pharma Shares (TORNTPHARM): Rs 4,937.50, up 1.66% from Rs 4,856.70
• Zydus Lifesciences Shares (ZYDUSLIFE): Rs 1,170.40, up 1.51% from Rs 1,153.00
• Divi’s Laboratories Shares (DIVISLAB): Rs 6,850.00, up 1.16% from Rs 6,771.50
• Lupin (LUPIN) Shares Rs 2,511.10, up 0.84% from Rs 2,490.20

PUBLIC SECTOR ENTERPRISES (PSE)

The Nifty PSE index currently trades 0.69% lower, making it the worst performing sector so far on Wednesday. Selling is largely confined to oil marketing companies that are correcting sharply after their recent uptrend. These stocks are pulling down the index despite select defence and mining stocks trading with mild gains. Hindustan Petroleum is pulling down the index the most followed by BPCL and IOC. Coal India, PFC and HAL stocks are trading with small gains.

• Hindustan Petroleum (HINDPETRO): Rs 390.45, down 3.82% from Rs 405.95
• BPCL (BPCL) Rs 304.00, down 3.17% from Rs 313.95
• Indian Oil Corporation (IOC): Rs 139.00, down 2.24% from Rs 142.18
• Container Corporation of India (CONCOR): Rs 464.45, down 1.76% from Rs 472.75
• Coal India (COALINDIA): Rs 430.30, up 0.31% from Rs 428.95
• HAL (HAL): Rs 4,427.20, up 0.61% from Rs 4,400.30

ENERGY

The Nifty Energy index trades lower by 0.47% at the moment. Bulk of the selling is coming from Reliance Industries stock, which has the highest weightage in the index. The stock is trading lower with most oil marketing companies. Meanwhile, Adani group’s energy stocks are trading strongly positive with Adani Power, Adani Green and Adani Energy Solutions trading with decent gains.

• Reliance Industries (RELIANCE): Rs 1,292.10, down 1.25% from Rs 1,308.40
• Aegis Logistics (AEGISLOG): Rs 1,313.40, down 5.08% from Rs 1,383.70
• Thermax (THERMAX): Rs 4,562.50, down 3.11% from Rs 4,709.00
• Adani Power (ADANIPOWER): Rs 222.29, up 1.94% from Rs 218.07
• Adani Green Energy (ADANIGREEN): Rs 1,542.30, up 1.53% from Rs 1,519.00
• Adani Energy Solutions (ADANIENSOL): Rs 1,674.50, up 1.42% from Rs 1,651.00

Overall, it is safe to say that markets are rewarding investors buying defensives and focusing on stock specific stories on Wednesday rather than buying or selling a particular theme outright. While the Pharma index is seeing buying across the board, Oil Marketing Companies are offsetting gains in other PSE stocks like Coal India, HAL as well as the Adani group energy stocks. Since the markets are still open, watch if the defensive rotation story into Pharma continues for the rest of the session or if it fizzles out as the broader markets find direction.

Source: nseindia.com