Pharma, realty, metal stocks lead stock market rally; Lupin top Sensex gainer

Indian stock markets rallied for the second day on Wednesday led by positive global cues and value buying by investors. The rally was led by pharma, metal and realty stocks, aided by Larsen & Toubro's impressive second quarter (Q2) results. Lupin was the top Sensex gainer to close 5.22 percent higher at Rs 1,487; the 30-scrip benchmark index ended 91 up at 26,051, or 0.35 percent.

The BSE Healthcare gained 2.19 percent while the BSE Realty closed 3.41 percent higher on a day when sentiments got lifted after US stock markets rallied for the second straight day on Tuesday.

In its sectoral update, HDFC Securities said that the Indian pharma market expanded 8.3 percent YoY to Rs 10,600 crore in October. "Notably, volume and price growth was relatively flat at 2.6 percent and 2.2 percent YoY, respectively, in October 2016," the brokerage said in a note on Wednesday. 

Besides Lupin, Sun, Cadila, Sanofi and Torrent were top performers in October. 

"Lupin reported the highest growth in Oct-16 at 21.2 percent YoY on the back of significant growth in Anti-Diabetic and Respiratory portfolios (47.9 percent YoY and 30.3 percent YoY respectively). Cadila (13.6 percent), Sun Pharma (13.5 percent), Sanofi (12.5 percent) and Torrent (10.8 percent) all also outperformed the IPM (8.3 percent) in October 2016," HDFC Securities said.

Strangely, a report said that Vietnam has blacklisted 39 Indian pharmaceutical companies, including Aurobindo Pharma,  Cadila and Mcleods Pharmaceuticals.

Asian Paints, Tata Steel, NPTC and Larsen & Toubro were the other top Sensex gainers on Wednesday. 

"Drop in valuation is prompting investors to accumulate, however a tepid growth outlook for H2FY17 is refraining them. The pivotal point is yet to be found, this is a time when the participants start looking for the long term benefit from the government's demonetization. Stock specific action and positive cues from global market supported the uptick in the market," Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services said in a note.

Among realty stocks, Indiabulls Real Estate gained 10.13 percent (Rs 69), NBCC 7.51 percent (Rs 227) and DLF 5.27 percent (Rs 116).

The Indian rupee closed 10 paise down at 68.26 to the US dollar. 

Foreign institutional investors (FIIs/FPIs) were net sellers of Indian equities worth Rs 1,023 crore while their Indian counterparts (DIIs) were net buyers of stocks worth Rs 1,254 crore according to provisional data published by the National Stock Exchange (NSE).