Sensex, Nifty fall as pharma stocks weaken despite Mahindra’s strong gains
Eleven of the 13 major sectors logged losses while small- and mid-caps each dropped 1%.
India's benchmark indexes traded lower on Tuesday, as broader losses led by pharma stocks on U.S. manufacturing measures outweighed gains in Mahindra & Mahindra, which surged on optimism about the future earnings outlook.
The Nifty 50 fell 0.35% to 24,375.55 and the BSE Sensex also lost 0.32% to 80,539.3 as of 10:22 a.m. IST.
Eleven of the 13 major sectors logged losses. The broader, more domestically focussed small- and mid-caps dropped 1% each.
The auto index rose 1%, led by Mahindra & Mahindra, which advanced 3.1% to top the list of Nifty 50 gainers.
Several brokerages expect a potential re-rating of the stock, driven by anticipated margin expansion in the farm and auto segments and growth in the sport utility vehicle market.
The pharma index lost 1.5% after U.S. President Donald Trump signed an executive order to reduce the time it takes to approve pharmaceutical plants in the U.S. to encourage domestic manufacturing.
Indian drugmakers earn a significant share of revenue from the U.S., the largest importer of India-made medicines.
India's pharma exports to the U.S. reached $8.73 billion in fiscal year 2024, a 16% year-on-year rise and accounting for 31% of the industry's total pharma exports, per data from the Pharmaceuticals Export Promotion Council of India.
Financials lost 0.7%, while Reliance fell 1.2% after gaining in the last five sessions.
"After the recent rise, the markets' momentum is moderating, with action shifting from broad-based movement to stock and sector-specific trends based on corporate earnings," said Vinod Nair, head of research at Geojit Investments.
Among individual stocks, Ather Energy listed at a 2.18% premium over its issue price in its debut trade on the day. The e-scooter maker's $352 million IPO was fully subscribed last week.
IT company Coforge added 3.5% despite its profit missing analysts' estimate in the March quarter as multiple brokerages reiterated a positive view on future earnings.
($1 = 84.2670 Indian rupees)
