India's Equity Benchmarks Rise, Led by Gains in Pharma and Reliance Industries

As of 12:05 a.m. IST, the Nifty 50 rose 0.75 per cent to 24,824, while the BSE Sensex climbed to 81,334, also up by 0.5 per cent.

Market Update at 12:15 PM: India's key stock indices advanced in early Thursday trade, supported by gains in pharmaceutical companies and heavyweight Reliance Industries. Lower U.S. Treasury yields and a softer dollar also contributed to the positive sentiment. As of 12:05 a.m. IST, the Nifty 50 rose 0.75 per cent to 24,824, while the BSE Sensex climbed to 81,334, also up by 0.5 per cent.

Apart from public sector banks, most sectors were trading in the green. Broader indices such as the Small-Cap and Mid-Cap benchmarks moved up by 0.8 per cent and 0.5 per cent, respectively, indicating domestic market strength.

Pharma stocks led the sectoral gains, with the index climbing around 1 per cent. Dr. Reddy’s Laboratories rose nearly 3 per cent following its collaboration with Alvotech to develop a biosimilar of the cancer drug Keytruda for global markets. Zydus also gained 2.7 per cent on news of a partnership with Agenus, while Glenmark advanced 2.3 per cent after its myeloma drug showed strong results in an early-stage trial.

Reliance Industries added 1.3 per cent, recording its second straight session of gains. JP Morgan noted that Reliance’s earnings over the next two years are likely to improve on the back of growth in its telecom and retail segments.

The market’s upbeat tone mirrored gains in other Asian markets, helped by declining U.S. yields. Lower bond yields typically make equities more attractive, supporting investor interest in emerging markets like India.

However, geopolitical tensions and rising trade-related concerns may keep the indices in a narrow range in the near term. Investors are also looking ahead to the RBI’s policy meeting on Friday, where a 25 basis point rate cut—the third in a row—is widely anticipated.

Market Update at 10:20 AM: India’s key stock indices started Thursday’s session on a positive note, tracking strong cues from Asian markets. As of 9:15 a.m. IST, the Nifty 50 was up 0.29 per cent at 24,691.20, while the BSE Sensex climbed 0.24 per cent to 81,196.08. Gains were broad-based, with all 13 major sectoral indices in the green. Small-cap and mid-cap stocks, which cater more to the domestic market, also saw an uptick of around 0.4 per cent each.

U.S. markets closed on a mixed note overnight, as fresh data revealed a contraction in the services sector for the first time in a year, pushing Treasury yields and the dollar lower.

Back in India, market participants are closely watching for the Reserve Bank of India’s monetary policy decision due on Friday. The central bank is widely anticipated to reduce the repo rate by 25 basis points, continuing its rate-cutting trend for the third consecutive meeting.

Pre-Market Update at 8:00 AM: Indian stock indices, Nifty and Sensex, are expected to begin Thursday's trade on a cautious note. As of 7:24 AM, the GIFT Nifty was quoting near 24,740, indicating a modest gain of 24 points. The sentiment in Asian markets was mixed, mirroring Wall Street's flat finish, influenced by weaker US data.

Despite holding above the 20-day EMA—a sign of underlying support—Nifty Bank remains rangebound as investors await the Reserve Bank of India's policy announcement. This event could potentially inject fresh momentum into the markets and stir volatility.

Meanwhile, the India VIX, a gauge of market volatility, has declined by nearly 10 per cent over the past two sessions and currently stands at 15.74, down 4.89 per cent from the previous close.

Foreign Institutional Investors (FIIs) turned net buyers on Wednesday, purchasing equities worth Rs 1,076.18 crore. Domestic Institutional Investors (DIIs) also continued their buying streak, investing Rs 2,566.82 crore, making it their 12th consecutive session of net buying.

Indian equities bounced back after three days of losses. The Sensex ended the session higher by 260.74 points (0.32 per cent) at 80,998.25, while the Nifty 50 advanced 77.70 points (0.32 per cent) to close at 24,620.20.

Asian shares traded in a mixed range early Thursday after US indices showed a subdued performance overnight. The Dow Jones slipped 91.90 points (0.22 per cent) to 42,427.74. The S&P 500 ended nearly flat, adding just 0.44 points (0.01 per cent), while the Nasdaq gained 61.53 points (0.32 per cent) to close at 19,460.49.

Soft US economic data weighed on sentiment. The latest ADP report showed only 37,000 private jobs added in May—the lowest since March 2023. Additionally, the US services sector contracted slightly, with the ISM non-manufacturing PMI falling to 49.9, signaling a dip in activity.

Crude prices fell as inventories rose and Saudi Arabia reduced July crude prices for Asia. Brent slipped 0.25 per cent to USD 64.70 per barrel, and WTI dropped 0.41 per cent to USD 62.59.

Gold prices edged higher as investors sought safety amid soft US data. Spot gold was up 0.1 per cent at USD 3,377.79 an ounce, while US gold futures gained 0.1 per cent to USD 3,401.20.

For today, Manappuram Finance and Aditya Birla Fashion Retail continue to remain under the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.