The key equity indices traded with decent gains in early afternoon trade. The Nifty traded above the 15,800 mark. Pharma shares witnessed some bargain buying after a three-day losing streak.

At 12:27 IST, the barometer index, the S&P BSE Sensex, was up 99.72 points or 0.19% to 52,752.79. The Nifty 50 index added 32.85 points or 0.21% to 15,811.30.

In the broader market, the S&P BSE Mid-Cap index rose 0.75% while the S&P BSE Small-Cap index gained 0.82%.

The market breadth was strong. On the BSE, 1889 shares rose and 1205 shares fell. A total of 139 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 0.61% to 13.03. The Nifty 26 August 2021 futures were trading at 15,811.60, at a premium of 0.30 points as compared with the spot of 15,811.30.

The Nifty option chain for 26 August 2021 expiry showed maximum Call OI of 21.2 lakh contracts at the 15,800 strike price. Maximum Put OI of 28.9 lakh contracts was seen at 15,000 strike price.

Buzzing Index:

The Nifty Pharma index rose 1.22% to 14,090.20, amid some bit of bargain hunting. The index had declined by 5% in the past three sessions.

Alkem Laboratories (up 3.29%), Cadila Healthcare (up 2.10%), Dr. Reddy's Labs (up 1.95%), Torrent Pharma (up 1.48%), Cipla (up 1.19%), Divi's Labs (up 1.14%), Biocon (up 0.90%), Lupin (up 0.74%), Sun Pharma (up 0.71%) and Aurobindo Pharma (up 0.35%) advanced.

Stocks in Spotlight:

Tejas Networks hit an upper circuit of 5% at Rs 258.30. The company's board had approved the issuance of shares and warrants to Tata Sons and its subsidiaries for an investment of Rs 1,884 crore. The transaction, when warrants are fully converted to shares, will give Tatas a 43% shareholding in the company, putting them in control. In addition, Tatas have announced an open offer to buy 26% of the company's shares from public shareholders, in compliance with Sebi's takeover code.

Ashoka Buildcon gained 2.79% to Rs 108.60. The EPC company won the contract for development of existing Grand Port Hospital to 600 beds super speciality hospital. The company will also construct a medical college with residential quarters of Zodiac Healotronics. The project is to be completed in the space of 60 months. The accepted EPC contract value of the project is Rs 600 crore.

Ashok Leyland jumped 6.83% to Rs 133.80. Switch Mobility, an electrified commercial vehicles company and a subsidiary of Ashok Leyland, has announced a strategic agreement with Dana Incorporated (Dana), the global leader in drivetrain and e-propulsion systems, to make a minority investment in Switch.

Under the terms of the agreement, Dana will make a strategic investment in Switch Mobility and will also be a preferred supplier of electric drivetrain components for the company's e-bus and EV commercial vehicle offering - including e-Axles, gearboxes, motors, inverters, software and controls, and electronics cooling, Switch Mobility said in a release. The company further said with this agreement, Dana not only becomes an important supplier to Switch but will also invest $18 million in the company, representing an approximate 1%stake.

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