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Weakness grapples Dalal Street; Capital Goods stocks led losers

25 Aug 2023 Evaluate

Weakness remained over the Dalal Street in early afternoon deals, with both Sensex and Nifty falling over 0.40% each, impacted by negative cues from other Asian markets. Domestic sentiments remained pessimistic, as the Reserve Bank of India (RBI) in its ‘minutes of the recent monetary policy committee (MPC) meeting’ said that the headline inflation is likely to witness a spike in the near months on account of supply disruptions due to adverse weather conditions. It said there are risks from the impact of the skewed south-west monsoon so far, a possible El Nino event and upward pressures on global food prices due to geopolitical hostilities. Adding more concerns among traders, a new report by the Asian Development Bank (ADB) showed that the increased cost-of-living crisis sparked by surging inflation last year, combined with the lingering effects of the COVID-19 pandemic, is continuing to push people in Asia and the Pacific into extreme poverty.

On the global front, Asian markets were trading mostly in red, after Indonesia's central bank kept the key interest rate unchanged for the seventh straight session as inflation is expected to remain within the target in the near-term. The Board of Governors of Bank Indonesia, led by Governor Perry Warjiyo, voted to hold the seven-day reverse repo rate at 5.75 percent. The deposit facility rate was maintained at 5.00 percent and the lending facility rate at 6.50 percent.

The BSE Sensex is currently trading at 64962.66, down by 289.68 points or 0.44% after trading in a range of 64732.57 and 65106.00. There were 7 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 0.74%, while Small cap index was down by 0.29%.

The only gaining sectoral index on the BSE was Telecom up by 0.72%, while Capital Goods down by 1.18%, Power down by 1.13%, Utilities down by 1.06%, Realty down by 1.03% and PSU down by 0.88% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.24%, Jio Financial Services up by 1.90%, Asian Paints up by 0.73%, Bajaj Finance up by 0.71% and Kotak Mahindra Bank up by 0.28%. On the flip side, Indusind Bank down by 1.72%, Larsen & Toubro down by 1.57%, Ultratech Cement down by 1.35%, JSW Steel down by 1.32% and Power Grid Corporation of India down by 1.26% were the top losers.

Meanwhile, Fitch Ratings in its latest report has said that the government guidelines mandating physicians prescribe only generic drug names face execution challenges and are unlikely to impact profitability of pharmaceutical companies in Indian market. It also said the domestic pharmaceutical market is mainly a branded generics market in which pharma companies sell off-patented drugs under their own brand names with varying prices.

According to the report, a sizeable erosion in branded generics sales share could affect Indian pharma companies’ profitability, as sharply lower average prices will outweigh potential benefits from lower marketing costs. It said ‘even so, we think the new guidelines are unlikely to trigger an immediate shift away from branded generics. We believe the implementation faces practical challenges as India’s less stringent drug quality norms may lead to variability in drug quality and efficacy among various manufacturers’.

Besides, the report said the mandate may shift the decision-making process about the choice of drug manufacturer from physicians to pharmacists who may not be adequately qualified or lack alignment with the interests of patient safety and drug efficacy. It said the latest guidelines are part of the government’s efforts to improve healthcare affordability by promoting the use of unbranded generic medicines that cost up to 80-90 per cent less than the branded versions in some cases. It added that the efforts, which include setting up a nationwide chain of generic-focused pharmacy stores, have supported an uptick in sales share of trade generics or the drugs sold without physicians’ involvement.

The CNX Nifty is currently trading at 19290.80, down by 95.90 points or 0.49% after trading in a range of 19229.70 and 19339.55. There were 12 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Jio Financial Services up by 3.30%, Bajaj Finserv up by 2.34%, ONGC up by 0.78%, Asian Paints up by 0.74% and Bajaj Finance up by 0.71%. On the flip side, Larsen & Toubro down by 1.70%, Indusind Bank down by 1.69%, Adani Enterprises down by 1.52%, JSW Steel down by 1.47% and Adani Ports and Special Economic Zone down by 1.44% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 662.93 points or 2.1% to 31,624.28, Taiwan Weighted lost 289.29 points or 1.76% to 16,481.58, KOSPI dropped 18.54 points or 0.74% to 2,519.14, Hang Seng declined 92.78 points or 0.51% to 18,119.39, Jakarta Composite plunged 23.9 points or 0.35% to 6,875.49 and Shanghai Composite weakened 0.1 points to 3,082.14, while Straits Times rose 2.55 points or 0.08% to 3,183.27.

SEBI Registered: Investment Adviser - INA000013323

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
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Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
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SEBI Registration Number:	INA000013323 Validity - May 16, 2019 - Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Warning: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Disclaimer: Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provides any assurance of returns to investors.

Compliance Officer:

Name: Shrikant Jagtap

Email: shrikant.jagtap@moneyworks4me.com

Mobile No: +91 97638 00745

Grievance Officer:

Name: Mukta Vaze

Email: mukta.vaze@moneyworks4me.com

Mobile No:+91 98609 19463

Principal Officer:

Name: Atharva Bhide

Email: atharva.bhide@moneyworks4me.com

Mobile No:+91 91758 99463

SEBI regional/local office address -

Plot No. C 4-A , G Block, Near Bank of India, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra 400051

Address:

The Alchemists Ark Pvt. Ltd., B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045

*Color code for outperformance consistency

*Number is average 3 year rolling returns

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