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Informist, Wednesday, May 21, 2025

By Akash Mandal

MUMBAI – Benchmark indices ended higher Wednesday with pharmaceutical and financial services stocks leading the gains. The Nifty 50, which had recovered the entire 262-point fall Tuesday at its intraday high of 24946.20 points, came off highs but still ended 129.55 points or 0.5% higher at 24813.45 points.

The index had reached its intraday highs in the first couple of hours of the session but could not sustain at higher levels due to investors booking profits. The BSE Sensex closed at 81596.63 points, up 410.19 points or 0.5%. The sentiment for the near term remains positive due to hopes of a trade deal with the US and expectations of a rate cut by the Reserve Bank of India next month, analysts said.

Shares of Bharat Electronics gained over 5% to end at a record closing high of INR 383 after the bullish outlook by the company at the post-earnings conference call Tuesday. The company's strong order backlog, sustained steady margin profile, healthy order prospects, increasing business from the Indian Navy, and a focus on diversification are positives for the stock, JM Financial Services said in a report. The stock is trading above the average target price of the 14 brokerage recommendations available with Informist, but is still 12% lower than the highest target price of INR 430 by ICICI Direct Research.

Other defence stocks also rose. The Nifty India Defence, which ended over 3% or 273 points higher, was the top gainer among the sectoral indices. The index had fallen nearly 200 points Tuesday. Solar Industries India, Garden Reach Shipbuilders & Engineers, Data Patterns (India), and Bharat Dynamics ended 4-5% higher.

Pharmaceutical stocks also ended with sharp gains after the US Department of Health and Human Services said it will implement an executive order to lower medical costs, especially for branded drugs. This order will focus on lowering the costs of branded drugs, which will benefit Indian pharma companies which have a large portfolio of generic drugs and a significant exposure to the US. Natco Pharma, Biocon, Cipla, and Sun Pharmaceutical Industries ended 1-3% higher.

Barring Nifty Consumer Durables, all other sectoral indices ended in the green. Nifty Realty ended nearly 2% higher and was among the top gainers. Raymond, DLF, and The Phoenix Mills ended 2-3% higher. Broader market indices also rose and ended around 1% higher each.

Many stocks also reacted to their March quarter earnings. Shares of Trident, which were down 1% ahead of its earnings, soared over 17% after its bottom line for the quarter doubled on year. The stock ended nearly 14% higher. Whirlpool of India slipped into the red and ended over 2% lower after Nuvama Institutional Equities downgraded the stock to 'hold' from 'buy' due to high valuation and a lack of clarity on the ownership of the company. The stock had risen nearly 8% in early trade after the company's bottom line for the March quarter rose 71% on year and beat the Street's expectations.

Dixon Technologies (India) fell nearly 6% despite its earnings for the March quarter beating the Street's view by a wide margin. Some analysts flagged concerns about the high valuation of the stock. In April, Nirmal Bang Institutional Equities had said the stock traded at a FY26 price-to-earnings multiple of 70, compared to peers such as Havells India, Voltas, Polycab India, and Blue Star, which traded at multiples of 32-59.

Solar Industries India ended over 5% higher after the company said it targets revenues of INR 100 billion and a consolidated operating margin of 27% for FY26. In FY25, the company's top line was INR 75.40 billion and its consolidated operating margin was 23.67%. The stock had fallen 2% Tuesday despite reporting strong earnings for the quarter. 

Aster DM Healthcare ended nearly 5% lower after its bottom line for the March quarter missed the Street's view, weighed down by a one-time cost of INR 264.20 million. KPR Mills fell nearly 3% after media reports said promoters KP Ramasamy, KPD Sigamani, and P Nataraj sold shares worth INR 11.96 billion through a bulk deal on the exchanges. 

* Of the Nifty 50 stocks, 35 rose, 13 fell, and 2 were unchanged

* Of the Sensex stocks, 23 rose and 7 fell

* On the NSE, 1,753 stocks rose, 1,095 fell, and 93 were unchanged

* On the BSE, 2,291 stocks rose, 1,685 fell, and 139 were unchanged

* Nifty India Defence: up 3.4%; Nifty Realty: up 1.7%; Nifty Consumer Durables: down 0.5%

BSE                                               NSE

Sensex: 81596.63, up 410.19 points or 0.5%        Nifty 50: 24813.45, up 129.55 points or 0.5%

End

Edited by Saji George Titus

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