The benchmark Sensex on Wednesday rose for a second consecutive session to close at its highest in nearly a year as pharma stocks led by Glenmark Pharmaceuticals and Aurobindo Pharma gained after getting approvals for generic versions of a blockbuster cholesterol drug in the US.
The 128-point rally in the Sensex was aided by reports that a good monsoon season will lead to a revival in farm output as well as income and on optimism over the GST Bill’s passage.
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The approvals came after a US judge on Tuesday refused to issue a temporary restraining order blocking the approval of generic versions of AstraZeneca’s Crestor in the US, a ruling that was seen favouring the rights of generics drug makers.
The Sensex opened slightly lower at 27,775.70 and moved between 27,935.18 and 27,759.71, before ending at 27,915.89, showing a rise of 128.27 points or 0.46 per cent. The NSE Nifty moved up by 37.30 points or 0.44 per cent to close at 8,565.85.
However, the rupee once again turned weak and ended lower by 10 paise to 67.20 against the US dollar due to fresh demand for the greenback from importers and banks.
Jayant Manglik, President, Religare Securities, said, “Nifty managed to gain nearly half a percent on Wednesday and settled above 8550 level, tracking positive domestic sentiments and favourable global cues. Despite mixed earning season so far, optimism over possible passage of the GST Bill is helping markets to sustain at higher level. Also, global markets, by and large, are holding positive bias, which is indeed aiding our markets too.”
Shreyash Devalkar, Fund Manager, BNP Paribas Mutual Fund, “after a range-bound movement in mid-morning trade, benchmark indices in India edged higher in early
afternoon trade to finally close the day with gains of nearly 0.5 per cent. Markets remained buoyant as a good monsoon season so far has lifted hopes of a revival in farm output and incomes, which in turn is likely to give a fillip to consumption. India has been plagued by the El Nino weather pattern for the last few years, which according to officials at the Indian weather bureau is likely to dissipate by early August.”
Majority of the sectoral indices on the National Stock Exchange traded positive with healthcare and FMCG stocks leading the pack of gainers.
Shares of Sun Pharma, Glenmark and Aurobindo were the star performers, rising by 1.89 per cent, 2.39 per cent and 5.09 per cent, respectively.