Daily Big Picture – FMCG Stocks Gain; Nifty up 1% while Smallcap Index down 0.2%

Today’s Action

Benchmark indices gain after three consecutive down days. Nifty, +1%, Sensex, +1.1%, Model Portfolio, +0.7%.; MSI Ind 47, -0.7%.

Daily Market Review

India’s benchmark indices gained 1% after three consecutive down days during the last week. Among sectors, Nifty FMCG (+2.2%) was the top gainer, led by Hindustan Unilever (+4.1%). Nifty Bank (+1.4%) and IT (+1.4%) also contributed to the gain. However, Nifty IT was downgraded to Correction status from Rally Attempt today since it made intraday low 1.8% below yesterday’s close before recovering.  Nifty Metal’s status was changed from Rally Attempt to Correction after Thursday’s loss.

However, Nifty Pharma (-1.3%) and Nifty Metal (-1.3%) dragged the market. Nifty Midcap posted small gain of 0.1%, while the Smallcap declined 0.2%.

Though Nifty was up 1%, the advance-decline ratio was in favor of decliners. Of the 2,073 stocks traded on the NSE, 681 gained, 1033 declined, and 359 remained unchanged.

The market status remains unchanged at a Confirmed Uptrend. The distribution count stands at two on the Nifty. We suggest investors to track fundamentally strong stocks trading above their 50- and 200-DMA and take positions on strong breakouts. Investors should begin with a smaller allocation and increase it gradually as market displays positive signals like additional follow-through days.

Stocks in News

Lupin received approval for its Potassium Chloride for Oral Solution USP, 20 mEq from the U.S. FDA to market a generic version of Pharma Research Software Solution LLC’s Potassium Chloride for Oral Solution, 20 mEq. Potassium Chloride for Oral Solution USP, 20 mEq accounts for annual sales of approximately $105M in the U.S.The stock was down 0.7%.

Godrej Properties was up 3.8% today as it announces JV with Hero Cycles to develop one million square feet of prime office space for leasing purpose in Gurugram. Hero Cycle owns four acre of land in Gurugram, which will be used by Godrej Properties.

Alembic Pharmaceuticals gains 0.7%. Today, it received approval from the U.S. FDA for its Abbreviated New Drug Application (ANDA) Lidocaine Ointment USP, 5%. It has an estimated market size of $97M for 12M ending December 2017 according to IQVIA.

Action in Leading Stocks

Leaders Up on Volume: Vip Industries (+6%), Hcl Technologies (+2.2%), and Sequent Scientific (+1.5%)

Leaders Down on Volume: Astrazeneca Pharma India (-7.7%), N R B Bearings (-4%), and Dr Reddys Laboratories (-1.9%)