Nifty trades below 22,750 mark; pharma shares rally for 2nd day

The key equity indices traded with minor losses in mid-morning trade on Tuesday. However, the recovery lacked momentum, with the expiry of derivatives contracts on the NSE and the ongoing Q2 earnings season keeping investors cautious. The Nifty traded below the 22,750 mark, reflecting a lack of strong directional cues and continued uncertainty over the near-term market trajectory.

Pharma shares witnessed buying demand for second consecutive trading session.

At 11:25 IST, the barometer index, the S&P BSE Sensex declined 145.84 points or 0.20% to 73,460.91. The Nifty 50 index fell 13.65 points or 0.06% to 22,739.55.

The broader market outperformed the frontline indices. The BSE 150 MidCap Index advanced 1.03% and the BSE 250 SmallCap Index rose 1.64%.

The market breadth was strong. On the BSE, 2,806 shares rose and 1,111 shares fell. A total of 227 shares were unchanged.

Initial Public Offer (IPO):

EAAA India Alternatives received bids for 6,84,702 shares as against 52,99,684 shares on offer, according to stock exchange data at 11:25 IST on 27 October 2026. The issue was subscribed 0.13 times. The issue opened for bidding on 26 October 2026 and will close on 28 October 2026. The price band of the IPO is fixed between Rs 1,585 and 1,665 per share. An investor can bid for a minimum of 9 equity shares and multiples thereof.

BLS Polymers received bids for 1,49,70,800 shares as against 1,19,00,000 shares on offer, according to stock exchange data at 11:25 IST on 27 October 2026. The issue was subscribed 1.26 times. The issue opened for bidding on 27 October 2026 and will close on 29 October 2026. The price band of the IPO is fixed between Rs 142 and 150 per share. An investor can bid for a minimum of 100 equity shares and multiples thereof.

SFC Environmental Technologies received bids for 5,12,820 shares as against 1,41,59,744 shares on offer, according to stock exchange data at 11:25 IST on 27 October 2026. The issue was subscribed 0.04 times.

The issue opened for bidding on 27 October 2026 and will close on 29 October 2026. The price band of the IPO is fixed between Rs 313 and 330 per share. An investor can bid for a minimum of 45 equity shares and multiples thereof.

Buzzing Index:

The Nifty Pharma index added 2.02% to 26,294.10. The index jumped 3.81% in the two consecutive trading sessions.

Mankind Pharma (up 8.04%), Gland Pharma (up 4.9%), Divis Laboratories (up 3.81%), Piramal Pharma (up 2.96%), Aurobindo Pharma (up 2.62%), Laurus Labs (up 2.55%), Wockhardt (up 2.4%), Alkem Laboratories (up 2.07%), Torrent Pharmaceuticals (up 1.93%) and Sai Life Sciences (up 1.73%) surged.

Stocks in Spotlight:

Valiant Communications spurted 9.52% after the company announced that it had received a domestic order worth Rs 14.76 crore, inclusive of taxes, for grid communication and grid protection solutions.

Tata Consumer Products rallied 4.87% after the company reported a 15.65% jump in consolidated net profit to Rs 470.14 crore in Q2 FY27 compared with Rs 406.51 crore in Q2 FY26. Revenue from operations climbed 14% YoY to Rs 5661.13 crore in the quarter ended 30th September 2026.

Global Market:

Asian equities traded mixed on Tuesday, as the filing for artificial intelligence (AI) company Anthropic's planned initial public offering revived appetite for technology stocks ahead of a busy week of corporate earnings and central bank decisions.

South Korea's economy grew 3.4% year on year in the third quarter of 2026, slowing from 3.7% in the previous quarter, preliminary data from the Bank of Korea showed on Tuesday. GDP expanded 1.0% quarter on quarter, accelerating from 0.6% in the April-June quarter. Semiconductor exports and investment in production equipment supported the expansion, although private consumption fell 0.2% quarter on quarter.

Wall Street ended higher on Monday, 26 October 2026. The Dow Jones Industrial Average rose 146.42 points, or 0.28%, to 52,361.58. The S&P 500 gained 53.09 points, or 0.70%, to 7,676.77, while the Nasdaq Composite advanced 214.04 points, or 0.83%, to 26,169.38. The Philadelphia Semiconductor Index climbed 2.8%, marking its biggest one-day gain in a month, as chip-related shares led the recovery. The technology sector gained 1.5%, leading the S&P 500's 11 major sectors.

Anthropic's IPO filing helped revive the AI trade by highlighting rapid revenue growth alongside the substantial costs and risks of developing advanced AI systems. The company's first-half 2026 net loss widened to $80.7 billion, largely because of a non-operating accounting item related to convertible bonds. Its operating loss narrowed to $693 million, while adjusted operating income turned positive at $1.62 billion, compared with a loss of $1.85 billion a year earlier. Revenue grew 1,368% year on year in the three months ended 30 June 2026. The filing also highlighted risks linked to infrastructure costs, cloud-provider dependence and AI safety.

Individual stocks reflected renewed interest in AI infrastructure. Lumentum gained about 8% and Coherent rose around 6%, while Tesla advanced 5.2% after a Barclays upgrade. Meta Platforms fell 1.9% after announcing plans to raise up to $95 billion through equity offerings to fund its AI infrastructure expansion. The fundraising includes about $35 billion in public offerings and a separate share-sale programme of up to $60 billion. Meta's plans underscore investor scrutiny of the financing required to sustain AI-related capital expenditure.

Economic data offered a mixed signal on US activity and price pressures. The Dallas Federal Reserve's general business activity index rose to 13.4 in October from 9.8 in September, exceeding the 8.8 consensus forecast. However, the production index fell to 15.8 from 29.5, and the new-orders index declined to 9.3 from 30.7. The survey also showed the raw-materials price index rising to 55.3 from 52.2, pointing to continued input-cost pressure.

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