Nifty reclaims 22,650 amid value buying; healthcare stocks rally
The key equity benchmarks rebounded in afternoon trade. The recovery was supported by value buying in beaten-down stocks, and fresh buying interest in select heavyweight shares. The Nifty moved back above the 22,600 mark.
Brent crude eased from a recent six-month high of around $117 per barrel to about $114.50, offering some relief to markets. Foreign institutional investors also bought equities worth Rs 887.65 crore on Friday, according to exchange data. However, geopolitical tensions in the Middle East and uncertainty over the US Federal Reserve's interest-rate outlook continued to weigh on sentiment.
At 13:30 IST, the S&P BSE Sensex rose 196.27 points or 0.27% to 73,320.10. The Nifty 50 index rose 58.95 points or 0.26% to 22,658.95.
The broader market outperformed the frontline indices. The Nifty MidCap 150 Index rose 0.56% and the Nifty SmallCap 250 Index jumped 0.77%.
The market breadth was negative. On the NSE, 1978 shares rose and 1513 shares fell. A total of 92 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, shed 3.45% to 17.44.
Buzzing Segment:
The Nifty Pharma index rose 1.33% to 25,666. Laurus Labs (up 3.25%), Glenmark Pharmaceuticals (up 2.22%), Mankind Pharma (up 2.14%) and Sai Life Sciences (up 2.12%) were the top gainers. Other notable gainers included Ajanta Pharma (up 2.06%), Zydus Lifesciences (up 1.68%), Piramal Pharma (up 1.51%), Biocon (up 1%) and Torrent Pharmaceuticals (up 0.92%).
On the losing side, Ipca Laboratories fell 0.3% and Gland Pharma declined 0.24%.
Dr Reddy's Laboratories shares jumped 5.88%. The drug major's consolidated revenue from operations declined 1.5% year on year to Rs 8,670.8 crore in Q2 FY27 from Rs 8,805.1 crore in Q2 FY26. Revenue increased 7.4% quarter on quarter from Rs 8,070.5 crore in Q1 FY27. Net profit attributable to equity shareholders of the parent company fell 35.6% year on year to Rs 925 crore from Rs 1,437.2 crore in Q2 FY26. Sequentially, net profit rose 108.6% from Rs 443.5 crore in Q1 FY27.
Stocks in Spotlight:
Kotak Mahindra Bank rose 2.26% after the private sector lender reported a 29% year-on-year increase in standalone net profit to Rs 4,212 crore in Q2 FY27. Net profit grew 2% sequentially from Rs 4,123 crore in Q1 FY27. Net interest income (NII) increased 16% year-on-year and 7% quarter-on-quarter to Rs 8,459 crore. Net interest margin (NIM), however, moderated to 4.31% from 4.54% a year ago and 4.53% in the previous quarter. The bank attributed the moderation largely to the mobilisation of foreign currency non-resident bank (FCNR(B)) deposits during the quarter.
Global Markets:
Dow futures rose 157 points, signalling a higher opening for US stocks.
European shares declined on Monday as geopolitical tensions in the Middle East weighed on risk appetite.
In the UK, retail sales volumes fell 0.4% in September, exceeding expectations for a 0.1% decline. Warmer weather weighed on online clothing sales, while supermarket volumes also fell. Retail sales volumes rose 0.7% over the three months to September, and fuel sales volumes increased 2.2% in September.
UK consumer confidence recorded its sharpest monthly decline since April 2020, raising concerns about household spending ahead of the government's upcoming budget. The GfK Consumer Confidence Index fell 11 points to -24 in October from -13 in September.
Most Asian equity indices traded lower as investors assessed elevated oil prices, geopolitical risks and a busy week of central bank decisions and corporate earnings.
Brent crude eased to around $114.51 a barrel on Monday after approaching a six-month high last week. Prices retreated amid hopes of diplomatic efforts involving Qatar, Iran and the United States to ease regional tensions. However, continued attacks in the region kept supply risks elevated.
The cautious mood followed a lower close on Wall Street on Friday, 23 October, as rising energy costs and concerns over artificial intelligence investment weighed on sentiment. Investors are also preparing for quarterly results from major US technology companies, including Alphabet, Microsoft and Amazon, which could provide fresh insights into AI-related spending and returns.
The Dow Jones Industrial Average fell 652.82 points, or 1.23%, to 52,215.16 on Friday. The S&P 500 declined 39.75 points, or 0.52%, to 7,623.68, while the Nasdaq Composite shed 53.52 points, or 0.21%, to 25,955.34.
Telecommunications stocks came under pressure after reports that SpaceX was exploring plans to launch a fourth US wireless carrier. AT&T and T-Mobile fell nearly 8% each amid concerns over increased competition. Energy stocks gained as Middle East tensions pushed oil prices higher.
Among individual stocks, Schlumberger gained about 7% following its quarterly results. American Express fell around 3.7% despite reporting higher quarterly profits and raising its full-year earnings forecast. The company also announced plans to cut 5% of its workforce, while revenue missed market expectations.
On the economic front, the University of Michigan's final consumer sentiment index for October came in at 48.0, compared with 48.1 in September. The reading exceeded market expectations, but sentiment remained near historically low levels. One-year inflation expectations rose to 4.7% from 4.6%, while five-year expectations increased to 3.5% from 3.4%. Persistent inflation concerns could complicate the Federal Reserve's policy outlook.
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