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Nifty outlook: Dalal Street week ahead: Nifty looks indecisive; the best thing to do is remain stock-specific

Domestic equities continued to relatively underperform their global peers in the last four sessions, and ended the week on a modestly negative note. The week gone by was a truncated one, as Wednesday was a trading holiday. Nifty had a similarly wide trading range, as it oscillated in a range of 500-odd points before closing on a negative note. The first day of the week was saw the market close deep in the red; while the subsequent three sessions saw Nifty stage a pullback rally. Following such volatile moves, the headline index ended with a net loss of 217 points, or 1.46 per cent, on a weekly basis.

market outlook: Dalal Street Week Ahead: Signs of fatigue all over; watch dollar & bond yields

Explore Now Displaying signs of imminent consolidation, Indian equities took a breather during the week gone by and ended with a modest cut. The market breadth remained a bit wider than it was during the week before, as Nifty oscillated in a 533-point range during the week. The five sessions also saw the market close at yet another lifetime high, and then the index pared some of the gains in the following days. From a technical perspective, some fatigue at higher levels was visible as Nifty closed with a net loss of 181.55 points, or 1.20 per cent. Volatility did not show any spike. INDIA VIX rose just 0.94% to 22.25 level on a weekly note. As we head into the expiry of the monthly derivative series, the market is likely to be dominated by rollover-centric activities in the coming week. The index is likely to move in a defined range in the coming five sessions, with the upside capped.

Nifty 50: Dalal Street week ahead: Nifty50 is now over-extended, may slip into consolidation

Although domestic stocks logged gains on a weekly basis, they showed the first signs of an impending broad consolidation, as the market spent much of the past three days correcting from higher levels. The market was buoyant at the start of the week. But after marking the weekly high at 14,653, Nifty continued to witness bouts of profit booking at higher levels subsequently. The trading range did not expand much on either side, but volatility surges. Despite five days of volatile trading, the headline Nifty index closed with a net gain of 86.45 points, or 0.60 per cent, on a weekly basis. There is no disputing the fact that the market has demonstrated very strong undercurrents. The US dollar will continue to stay weak following a large stimulus from new US government. All this will continue to fuel liquidity in the emerging markets in general. The buoyancy in the market can be gauged from the 10 positive weekly closes in the last 11 weeks. That said, the overbought and overextended s

Expect growth in pharma to continue in 2021: Dr Reddy

Updated Jan 11, 2021 | 15:42 IST In an exclusive interaction with ET Now we spoke to GV Prasad, Co-chairman and Managing Director, at Dr Reddy s Laboratories. Screengrab  Nifty Pharma Index has given returns of 60% making it one of the best performing sectors for the first time since 2015. Nifty Pharma has gained nearly 4x vs Nifty in 2020 with Nifty being up nearly 15% in 2020. Since March 2020 low Pharma as an index is up 85%. From the lows of 2020, Pharma stocks like Aurobindo & Cipla are up >100%. Factoring in the run-up experts says Tailwinds are emerging in US generic business for Indian pharma has been one of the key reason for the sector to see such high interest from market participants.

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