Pharma, energy stocks not in favour today

Tue, 21 Oct Closing

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After having witnessed a fairly volatile day, the Indian markets ended the day on a firm note. The BSE-Sensex closed higher by about 150 points or 0.6%, while the NSE-Nifty ended higher by about 0.6% or 48 points. Stocks from the realty and power spaces were the most in demand today, while those from the pharmaceutical and oil & gas spaces were the least favoured. Midcaps ended the day on a firm note as the BSE Mid Cap index ended with gains of about 0.9%, while the BSE Small Cap Index closed higher by about 0.2%.

Stock markets in other parts of Asia ended the day on a mixed note with Hong Kong up by 0.1%, while Japan and China ended lower by about 2% and 0.7% respectively. European stocks were trading firm at the time of writing. The rupee was trading at Rs 61.3 to the dollar at the time of writing.

Banking stocks ended the day on a firm note led by IDBI Bank, ICICI Bank and Bank of India. HDFC Bank announced its results for the quarter ended September 2014 today. The bank reported a 20% YoY rise in profits during the quarter, while its net interest income grew by 23% YoY. The bank's net interest margins stood at 4.5%, as compared to 4.3% during same quarter last year. Further, advance growth stood at 22% YoY. As per the bank, the growth was led by both, domestic retail loans as well as wholesale loan segments. Gross non-performing assets stood at stood at 1.02% as compared to 1.09% in same quarter last year and 1.07% in preceding quarter i.e. for the quarter ended June 2014. Net NPAs remain stable at 0.28%. The stock of HDFC Bank ended with marginal gains today and is currently trading close to its 52-week high price.

Stocks of pharmaceutical companies ended the day on a mixed note with Aurobindo Pharma and Biocon leading the pack of gainers, while Lupin and Sun Pharmaceuticals were amongst the top underperformers. The stock of Lupin Limited was in the news today due to its plans of expanding its presence abroad. As per the company's senior management, it is scouting for acquisitions in the US which will complement its specialty business. This will help the company to bolster its existing brands and help in building complex technology products in its portfolio. Thus, the company is looking for meaningful targets across various therapies and segments, be it brands or technology companies, in inhalation, complex injectables and skin diseases segments. While revenues from the US grew at a sharp pace in the first quarter of the year (57% YoY), the company expects growth from this market to remain in the region of 20 to 25% at least. In FY14, revenues from the US contributed to about 44% of its revenues.