India Stocks: Metal, pharma stocks drive Indian benchmarks higher

Jubilant Industries

28/05/2024 06:48

(Updates at 11:10 a.m. IST)
    By Manvi Pant and Dimpal Gulwani
       BENGALURU, May 28 (Reuters) - Indian equity benchmarks
advanced on Tuesday, helped by gains in metal stocks on higher
global aluminium prices and an earnings-led rally in pharma
shares.
    The NSE Nifty 50  .NSEI  was up 0.2% at 22,985.75 points,
while the S&P BSE Sensex gained 0.1% to 75,475.32 points, as of
11:10 a.m. IST.
    Ten out of the 13 major sectoral indexes were trading in
green.
    State-run National Aluminium (NALCO)  NALU.NS  and Hindalco
 HALC.NS  rose 2% and 1.6%, respectively, leading gains among
metal stocks  .NIFTYMET , which advanced 0.6%.
    The metals sub-index was among the top sectoral gainers,
helped by a rise in aluminium and copper prices.  MET/L 
    NALCO reported fourth-quarter profit above estimates, helped
by lower costs of key raw materials, including thermal coal and
bauxite.
    Meanwhile, volatility in shares continued to hover near
two-year highs due to nervousness around the outcome of the
general elections. While Prime Minister Narendra Modi's
Bharatiya Janata Party is expected to return to power, there is
some uncertainty over the margin of victory.
    India's weeks-long election ends on Saturday and the votes
will be counted on June 4. 
  "On the earnings front most of the results that have come in
are either better-than-expected results like NALCO's or in line
with expectations. Hence, the outcome of general elections on
June 4 would be key to market move this week alongside Tata
Steel  TISC.NS  earnings expected tomorrow," Anita Gandhi,
founder and head of institution at Arihant Capital Markets,
said.    
    Pharma company Divi's Laboratories  DIVI.NS , the top
percentage gainer on the Nifty 50, added 2.8% in a post-results
rally. 
    Divi's and Natco Pharma  NATP.NS , which jumped 3.4% on
strong results, drove the Nifty pharma index  .NIPHARM  up 0.5%.
    Sumitomo Chemicals India  SUMH.NS  and agri products maker
Jubilant Industries  JUBL.NS  gained 8% and 5%, respectively, on
quarterly profit rise. 
        
  
 

 (Reporting by Manvi Pant and Dimpal Gulwani in Bengaluru;
Editing by Mrigank Dhaniwala and Savio D'Souza)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))