Sensex Rises Nearly 250 Points As Drugmakers, Consumer Stocks Gain

Sensex Rises Nearly 250 Points As Drugmakers, Consumer Stocks Gain

Sensex and Nifty rebounded after Tuesday’s sharp down move, with drugmaker Aurobindo Pharma Ltd up on hopes of higher U.S. sales and consumer staple Hindustan Unilever hitting a record high after its June-quarter profit beat expectations.

The Sensex rose 244 points to close at 31,955 and Nifty rose 72 points to shut shop at 9,900.

Aurobindo Pharma Ltd jumped as much as 8.2 percent at more than an 8-month high, was the top gainer on the index after obtaining U.S. regulatory approval for a chronic kidney disease drug. Cadila Healthcare Ltd gained as much as 3.1 percent after launching an ulcerative colitis drug in the United States.
The Nifty Pharma index was up for the sixth straight session, rising as much as 1.8 percent to its highest since May 19.

“Pharma stocks will now slowly get into action on the back of strong product approvals for stocks like Aurobindo Pharma and Biocon,” said Krish Subramanyam, co-head – Equity Advisor at Altamount Capital Management.

Biocon Ltd rose as much as 6.25 percent to a life high.

Hindustan Unilever Ltd gained as much as 3.2 pct to a record high of 1,195.05 rupees after the consumer goods company reported a 9 percent increase in June-quarter profit.

ITC Ltd gained 2.6 percent after a government increase in cigarette taxes hammered the stock on Tuesday.

Reliance Capital Ltd dropped as much as 2.9 percent after Japan’s Sumitomo Mitsui Trust Bank sold its remaining 2.8 percent stake in company in a block trade.

From the Nifty basket of shares, 40 ended higher while 11 closed lower.

The broader markets also witnessed buying interest with BSE mid-cap and small-cap indices rising 1 per cent each.

The overall market breadth was bullish as 1,718 shares closed higher while 971 ended lower on the BSE.