Sensex Today Trades Higher; Macrotech Developer Rallies 6%

Asian shares rose slightly on Tuesday as markets awaited a barrage of key economic readings this week, while a rally in Chinese shares extended into a second session amid speculation over more stimulus measures.

The Nikkei is trading 0.3% higher while the Hang Seng index is trading 2% higher. The Shanghai Composite is trading 1.4% higher.

US stocks surged on Monday ahead of economic data. The Dow Jones Industrial Average ended 0.6% higher, and the Nasdaq Composite rose 0.8%.

Here's a table showing how US stocks performed on Monday:

Stock/Index LTP Change ($) Change (%) Day High Day Low 52-Week High 52-Week Low
Alphabet 131.79 1.1 0.84% 133.24 130.85 134.97 83.45
Apple 180.19 1.58 0.88% 180.59 178.55 198.23 124.17
Meta 290.26 4.76 1.67% 291.45 285.8 326.2 88.09
Tesla 238.82 0.23 0.10% 244.38 235.35 313.8 101.81
Netflix 418.06 2.03 0.49% 419.83 413.27 485 211.73
Amazon 133.14 -0.12 -0.09% 133.95 131.85 143.63 81.43
Microsoft 323.7 0.72 0.22% 326.15 321.72 366.78 213.43
Dow Jones 34,560.00 213.1 0.62% 34,652.91 34,441.64 35,679.13 28,660.94
Nasdaq 13,705.10 114.5 0.84% 13,735.98 13,626.64 14,446.55 10,088.83

Data Source: Equitymaster

Back home, Indian share markets are trading on a positive note. At present, the BSE Sensex is trading 79 points higher and the NSE Nifty is trading 28 points higher.

Tech Mahindra and Cipla are among the top gainers today.

Axis Bank and Bharti Airtel on the other hand are among the top losers today.

Broader markets are trading on a positive note.

The BSE Mid Cap index is trading 0.4% higher and the BSE Small Cap index is trading 0.7% higher.

Sectoral indices are trading on a positive note with stocks in the realty sector, power sector, and capital goods sector witnessing most buying.

Shares of 3M India and Birlasoft hit their 52-week high today.

The rupee is trading at Rs 82.64 against the US dollar.

In commodity markets, gold prices are trading marginally higher at Rs 58,970 per 10 grams today.

Meanwhile, silver prices are trading 0.3% higher at Rs 75,416 per 1 kg.

Bharat Forge's defense arm secures new order

Kalyani Rafael Advanced Systems, a wholly owned defense subsidiary of Bharat Forge, has bagged an order amounting to Rs 2875.1 million inclusive of taxes from the Indian Ministry of Defence for the supply of missile systems.

According to the company, the order is expected to be executed over the next 12 months.

Established as a flagship company to drive defense business initiatives, Kalyani Rafael Advanced Systems is a joint venture company between Kalyani Strategic Systems and Rafael Advanced Systems of Israel.

Post the announcement, the shares of the forging giant Bharat Forge hit a new all-time high of Rs 1,056.8 apiece and gained 3.33% on Monday.

The order won by Kalyani Rafael comes on the back of the Defence Acquisition Council having cleared proposals worth Rs 78 bn last week. The defense ministry said that this was done to strengthen the operational capacities of the Indian armed forces.

The value of the order amounting to Rs 2.9 bn is inclusive of taxes.

Bharat Forge had set up Kalyani Strategic Systems Ltd, a 100% subsidiary, as a flagship company to drive defense business initiatives of the group.

Speaking of the defense sector, note that the government's Atmanirbhar Bharat Abhiyan has emphasized the need for self-reliance in security space.

Given the increasing focus on self-reliance, the Ministry of Defense (MoD) has set a target of doubling defense production to US$ 25 bn by 2025. To boost this, the Indian government is likely to spend a massive US$130 bn over the next 7-8 years on the modernization of the armed forces.

The increase in budgetary allocation, along with other factors, will ensure that India's top defense stocks remain in the limelight for the foreseeable future.

That is why we believe that the defense sector could produce the next set of multi bagger stocks over the long run.

Sun Pharma invests in R&D

Sun Pharma's R&D spending is expected to be about 7-8 percent of sales in FY24 with an increased focus on specialty R&D, Sun Pharma's R&D spending is expected to be about 7-8 percent of sales in FY24 with an increased focus on specialty R&D.

Sun Pharmaceutical Industries spent approximately Rs 2,400 core on Research and Development (R&D), which accounted for about 5.5% of its sales for FY 2023.

The company's global specialty revenues recorded a strong 29% growth to reach US$ 871 million in FY 23. Its contribution has more than doubled from 7% of consolidated revenues in FY18 to about 16.2% in FY23.

Sun Pharma will continue to focus on improving manufacturing efficiencies and optimizing costs.

However, the generics business in the US continued to face price erosion and the ramifications of Import Alert at Sun Pharma's Halol facility, imposed in December 2022.

However, the company was able to partly compensate for these headwinds in the US generics through new launches and market share gains.

According to the company, the various products are under trial. Ilumya is currently undergoing Phase-3 clinical trials for psoriatic arthritis.

MM-II has completed a global Phase-2B trial as a potential treatment for knee pain in patients with symptomatic knee osteoarthritis. SCD-044 is in Phase-2 clinical trials as a potential oral treatment for atopic dermatitis and moderate to severe plaque psoriasis.

Sun Pharma is among the pharma companies in India that have solid growth in sales and profits...and a high Return on Equity (ROE).

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity ...

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