Nifty Back At 10,000; Pharma Sector Rallies

Market This Week

This week started with a huge buying in each and every sector, especially in metals and fresh pull back was seen in pharma sector stocks, however, the main trigger which is pulling down or putting the market in a range bound is the increasing tension in the Korean peninsula. But the positive news is that United Nation (UN) is taking a proactive role in solving this issue.

On the domestic front, the CPI, WPI and IIP numbers came out this week. IPOs of the major companies like ICICI Lombard and SBI insurance are going to open this week. However, the Indian market has the potential to grow more in coming days as the Indian market is not near to bubble zone and still has the potential to grow more in energy, metals, private sector banks.

Movers & Shakers

Mirc Electronics rallied almost 45% this week over outstanding number presented by the company as its profit increased by 287% in the first quarter. In other stocks, there was positive buying seen in Sun Pharma as it rallied around 10% this week. The rally was seen as some of the broking firms upgraded their target. Also, the company got permission from USFDA for new drugs and the price is at a major support level. All Tata companies were on higher side due to positive developments in each segment. Indiabulls housing finance and BPCL were down because of profit booking. Wipro was down almost 5% due to the expiration of buy back date.

Key Market Drivers

Apart from the geopolitical issue and IRMA hurricane, the other major news for market were 1) CPI, WPI and IIP numbers were out this week and inflation was hiked in CPI as well as WPI, but the positive news is that IIP numbers have increased due to increasing manufacturing activities. 2) Nomura has predicted that India's GDP would grow around 7.1% this fiscal. 3) Government (NITI Aayog) is very close to announcing a policy framework for electric vehicles, batteries and charging infrastructure as the government wants to electrify all new vehicles by 2030. 4) The government has issued a new notification for bidding guidelines for solar power projects.

Event Watch

Very important update on shell companies is going to come on 18th of September from SEBI as which companies are shell companies and which are not and what action is SEBI going to take on shell companies is going to be decided. US Fed policy decision on interest rate is coming on 20th September. Apart from this, all the investors would be looking at the Korean peninsula situation as it is going to be a driving factor for Indian as well as global markets for next few weeks.

Stocks to Watch

Sun Pharma is on the upside while Wipro is on the downside.