Indian equity benchmark indices ended sharply lower Wednesday as investors booked profits near highs while escalating geopolitical tension between Iran and US kept markets wary. The 30-share Sensex tanked 715.06 points or 0.92% to close at 76,755.05, while the Nifty 50 shed 191.45 points or 0.79% to settle below important psychological resistance level of 24,000 at 23,996.25. According to Reuters, a total of 2,616 stocks declined versus 1,443 gaining on BSE, while 170 remained unchanged. Market breadth remained skewed towards home losers but weakness was checked by gains in auto stocks and FMCG counters limiting sharper fall in indices.
The pharmaceutical sector continued its decline for the second consecutive trading session, with the Nifty Pharma index falling 0.75% to 25,559.90. As reported by Business Standard, the sector has declined 2.04% over the two consecutive sessions, indicating sustained selling pressure. Major pharmaceutical stocks faced significant declines, with Dr Reddy's Laboratories dropping over 4.5% after reporting a 68.71% YoY decline in consolidated net profit to ₹443.5 crore in Q1 FY27, compared with ₹1,417.8 crore in the corresponding quarter of the previous year, with revenue from operations declining 5.55% YoY to ₹8,070.5 crore. Cipla shares declined nearly 2% by midday after the pharmaceutical major reported a sharp fall in its June-quarter earnings as higher expenses offset modest growth in revenue. Consolidated net profit attributable to owners dropped 39.2% year-on-year to ₹789.05 crore, while revenue from operations increased 2.3% to ₹7,119.28 crore.
Markets opened with a soft note as caution prevailed around crude oil prices with international benchmark Brent oil rising towards $96 per barrel on Thursday, its highest level in over six weeks after US launched fresh strikes on Iran overnight. As reported by Reuters, US intelligence analysts were separately probing whether Russia helped Iran develop technology used in recent drone attacks on two CIA facilities in the Gulf. Iran's attacks on ships come as the Houthis claimed attack on oil tankers traversing the Red Sea shipping lane, with Tehran saying tanker blown up near Bahrain's BP Oil terminal was among Saudi Arabia-bound ships which Iran prevented from passing through Strait of Hormuz. Iran warned it would target 'ships taking part in Britain's 'adventurous play' while US President Donald Trump also warned of further action against Iran following attacks on ships in the Strait of Hormuz, adding to concerns around energy supplies. The rally in crude prices lifted upstream companies such as Oil And Natural Gas Corporation Ltd. and Oil India, as higher oil prices generally improve their earnings by increasing the value realised on crude production.
Several major companies announced their quarterly results today, with Infosys, Cipla, Motilal Oswal Financial Services, Meesho, Mphasis, Route Mobile, Vishal Mega Mart, PVR Inox, Banaras Beads, Capital Small Finance Bank, Chennai Petroleum Corporation, Coromandel International, Indiabulls, and Indian Energy Exchange (IEX) all reporting mixed performance. According to Business Standard, these results provided crucial insights into corporate performance across various sectors. Eternal gained around 2% by midday after the company reported another strong quarter, with consolidated net profit rising to ₹92 crore from ₹25 crore in the corresponding quarter last year, while revenue from operations jumped 182% year-on-year to ₹20,211 crore. Tanla Platforms surged nearly 10% by midday after the cloud communications company reported broad-based growth, with revenue from operations increasing 17.8% year-on-year to ₹1,226 crore and profit after tax growing 20.1% to ₹142 crore.
Gandhar Oil Refinery (India) hit the 20% upper circuit by midday after the company reported exceptional quarterly results, with consolidated net profit surging 638% year-on-year to ₹192 crore from ₹26 crore in the corresponding quarter last year, while revenue from operations jumped 92% to ₹1,732 crore. HEG advanced nearly 6% by midday after the graphite electrode manufacturer reported improved June-quarter earnings, with consolidated net profit increasing 16% year-on-year to ₹122 crore and revenue from operations rising 11% to ₹681 crore. However, Waaree Renewable Technologies declined nearly 6% despite reporting strong year-on-year growth, as investors focused on sequential moderation in earnings with profit falling 23.6% compared with the March quarter. Dr Reddy's Laboratories fell more than 3% by midday after opening with losses of nearly 7%, as investors reacted to the pharmaceutical company's muted June-quarter performance and weakness in its global generics business.
