Dear Trader…
Domestic equities gained momentum on back of positive global cues and better than expected 1Q FY23 earnings by few heavyweights. Nifty future open flat but soon strengthened during the day to close near day’s high with modest gains of 169 points (+1.03%) at 16660 levels. Global market was positive as better-than-expected results from tech giant lifted investor’s sentiments. Further, markets have largely factored in a 75 basis point hike, that eased some concern ahead of the of U.S. Fed outcome.
Nifty futures opened at 16488.00 points against the previous close of 16491.30 and opened at a low of 16438.00 points. Nifty Future closed with an average movement of 230.00 points and a rise of around 169.10 points and 16660.40 points...!!
On the NSE, the midcap 100 index will rise 1.11% and smallcap 100 index is closing rise 0.01%. Speaking of various sectoral indices, Pharma, Media, PSU Bank and IT stocks saw heavy gains on the NSE, while all other sectoral indices also closed higher.
At the start of intra-day trading, August gold opened at Rs.50568, fell from a high of Rs.50716 points to a low of Rs.50505 with a rise of 79 points, a trend of around Rs.50663 and September Silver opened at Rs.54605, fell from a high of Rs.55109 points to a low of Rs.54505, with a rise of 322 points, a trend of around Rs.55037.
Meanwhile, rating agency ICRA in its latest report has said that Indian pharmaceutical firms are likely to witness muted revenue growth from the US generics market in FY23 due to price erosion pressure. It said the US has always been a key market for Indian pharmaceutical companies but over the past few years, the revenues from there have grown at a relatively modest pace due to consistent pricing pressure, lack of major generic product launches, increased regulatory scrutiny.
According to the report, in FY22, the revenues from the US pharmaceutical market for its sample of eight leading Indian pharmaceutical companies declined marginally by 0.2 percent owing to high single-digit to low-teens price erosion. On the outlook, it expects mid to high single-digit price erosion to continue to exert pressure over the near term, resulting in muted revenue growth for the Indian pharmaceutical companies from the US generics market in FY23. Further, it said the impact of elevated raw material prices and packaging costs in addition to relatively higher freight rates and the impact of supply chain disruptions on their margins will remain key monitorable.
The report further said the COVID-19 pandemic had impacted the pace of approvals of Abbreviated New Drug Applications (ANDA) and revenue growth for companies in FY21, while pricing pressures impacted growth in FY22. With the USFDA unable to conduct physical inspections due to the pandemic-induced restrictions, both the pace of ANDA approvals and the issuance of warning letters to Indian pharmaceutical companies were lower over the past two years. However, it said the same is likely to pick up over the medium term as inspections gain traction.
Technically, the important key resistances are placed in Nifty future are at 16707 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 16737 – 16808 levels. Immediate support is placed at 16577 – 16474 levels.
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