Pharma and IT Stocks Fall As Nifty Trades at Record High

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Pharma and IT Stocks Fall As Nifty Trades at Record High
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- The BSE Sensex gained 400 points on November 10 to cross the 43,000 mark for the first time ever. It is currently trading at 43,039.35 levels powered by the news that Pfizer (NYSE: PFE ) reported successful clinical trials for its COVID-19 vaccines. Nifty was trading at 12,573.35, up 110.15 points.

There have been a number of reasons for the markets to continue their rally that started last week. President-elect Joe Biden winning the US Presidential election, the hope of a new stimulus, better-than-expected results for the second quarter, and increase in liquidity have been key among them. However, now there are cracks appearing in the rally. After all while indices rose in the last six days, today the rally hasn’t been uniform.

Banking and financial stocks have continued their upward trajectory. Bank Nifty has surged 3.47% led by stocks like IndusInd Bank (NS: INBK ), RBL Bank Ltd (NS: RATB ), SBI (NS: SBI ), and ICICI Bank (NS: ICBK ).

However, the Nifty Pharma and Nifty IT indices are taking a beating. Companies in these sectors were some of the top-performing stocks in 2020 and have relatively immune to the impact of the COVID-19 pandemic. 

Nifty Pharma and IT indices are down 3.59% and 3.77% respectively. Cipla (NS: CIPL ) is down 6.01%, Cadila Healthcare (NS: CADI ) is down 5.61%, Lupin (NS: LUPN ) is down 5.1% and Divi’s Labs is down 3.57%. On the IT index, Infosys (NS: INFY ), HCL, and Tech Mahindra (NS: TEML ) are all down over 4% while Mindtree (NS: MINT ) is down 5.43%. TCS (NS: TCS ) and Wipro (NS: WIPR ) are down 2.44% and 2.66% respectively.

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  • Rems Sahu @Rems Sahu
    why it down
    Like 0
  • Rems Sahu @Rems Sahu
    why it down
    Like 0
  • Aju Jaison @Aju Jaison
    What is the reason for the fall of nifty it
    Like 2
    • Debu Rath @Debu Rath
      Like 0
    • Debu Rath @Debu Rath
      Just profit booking.
      Like 0
    • Deepak PM @Deepak PM
      IT n Pharma sectors were the sectors which overperformed since lockdown. Now the news on covid vaccine is out...investors are looking for stocks that were underperforming and available for a low price now. That being said...cash inflow increased in such underperforming sectors and profit booking took place in pharma n IT sectors.
      Like 0
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      100
  • tukaram sankpal @tukaram sankpal
    nice
    Like 0

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