Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
Investing in India? Get Equitymaster Research  
IT stocks not in favour today 
(Mon, 19 May Closing) 
Indian equity markets had a volatile trading session today. While the indices began the day's proceedings on a firm note, they quickly pared gains and hovered around the dotted line in the noon. However in no time, the markets gained back the momentum and closed the day on firm note. While the BSE-Sensex today closed higher by 241 points, the NSE-Nifty closed higher by 61 points. Smallcaps and Midcaps were in much demand today. The BSE Mid Cap and BSE Small Cap indices closed higher by 5.82% and 5.19% respectively. Barring stocks from IT, pharma and Consumer goods sector, all the sectoral indices closed in green.

As regards global markets, Asian indices closed mixed today while European indices have opened weak. The rupee was trading at Rs 58.55 to the dollar at the time of writing.

Amidst huge financial inflows, the rupee has advanced to Rs 58.38 per US dollar hitting 11-months high level. On the weekly basis also, the rupee posted its best weekly gains in last eight months post BJP's victory declared recently. However the rupee appreciation has negatively impacted the stock prices of IT and Pharma sector stocks. An appreciating rupee is painful for these companies, as large part their revenues come from exports. BSE IT closed down by 4.95%, while BSE healthcare was down by 3.66% today.

Do you think rupee will continue to appreciate? How will IT and pharma companies perform if the trend continues? Share your views on Equitymaster Club

Indian pharma stocks have closed the day on a weak note. IPCA Labs and Wockhardt Ltd were the leading losers today. However, Orchid Chemical was the only stock that bucked the trend and closed with healthy gains. Dr Reddy's Laboratories is likely to invest US$300 m towards its proprietary product portfolio and US$150 m towards biological segment. It also plans to increase its R&D spend to 10-11% of sales in the current fiscal from about 9.4% in the last year. Roughly 65% of the R&D spend will be on global generics while the balance 35% will be towards biological and proprietary products. An increase in R&D spend will enable the company to launch new and better products into the market and thereby increase its share.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives  RSS
Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "IT stocks not in favour today". Click here!


Become A Smarter Investor In
Just 5 Minutes

Multibagger Stocks Guide 2017
Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Aug 18, 2017 (Close)