Sensex ends 75 points higher, led by pharma stocks

The BSE Sensex and Nifty edged up on Thursday, led by pharmaceutical stocks after positive comments from broker CLSA boosted investor sentiment.

The Sensex closed 0.27 per cent or 75.05 points up at 28,298.13 while Nifty closed at 0.24 per cent or 20.70 points up at 8,588.65.

CLSA said Indian drugmakers' transition to making complex generics should drive significant growth in the sector. Drugs worth $100 billion, especially biologics, are losing patent protection over the next five years in the United States, the broker added.

Other major gainer was L&T that rose 2.74 per cent to close at Rs 1827.30.

Sentiment was also boosted after Labour Minister Bandaru Dattatreya said state pension fund could invest more into equity markets in the next fiscal year starting April by raising the current limit set at 5 per cent of total investable assets.

"Sentiment remains positive as India's macro remains in a sweet spot. Fed rate hike and monsoon are the key triggers to watch going forward," said G. Chokkalingam, founder of Equinomics, a Mumbai-based research and fund advisory firm.

Gains were however limited amid profit-taking in other blue-chip stocks and lower global shares after strong US data and comments from a Federal Reserve governor fanned expectations of an interest rate hike in September.

Dr.Reddy's Laboratories gained 1.79 per cent to mark a close of Rs 4270.10. CLSA said the company's profit could increase to $1 billion by FY20 as it launches new products.

Lupin rose 1.37 per cent to close at Rs 1703.15 and Aurobindo Pharma gained 3.14 per cent to close at Rs 787.70 on rising prospects of their US businesses.

Among other drugmakers, IPCA Laboratories rose 4.30 per cent to close at Rs 754.35, Strides Arcolab gained 4.77 per cent to close at Rs 1325.50 while Astrazeneca Pharma India rose 3.02 per cent to close at Rs 1207.15.