Informist, Monday, Oct 4, 2021
By Ankika Biswas
MUMBAI – Most frontline sectors rebounded today, which helped the benchmark indices snap their four-day losing streak, but it was the pharmaceutical pack that took the centre stage as investors placed bets on the business prospects of drugmakers if global major Merck and Ridgeback Biotherapeutics manages to get approval for its first ever anti-viral drug to treat COVID-19.
The phase-3 trials of Merck's oral drug showed that it halved the chances of hospitalisation or death in COVID-19 patients with mild or moderate infections. Merck reportedly plans to seek emergency-use authorisation in the US and submit marketing applications to other global drug regulators. It has a US government contract to supply 1.7 mln courses of the drug at a price of $700 per course.
While Divi's Laboratories is reportedly the authorised manufacturer of the anti-viral COVID-19 drug, Merck is also in voluntary licensing agreements with five other Indian drugmakers--Sun Pharmaceutical Industries, Cipla, Dr Reddy's Laboratories, Emcure Pharmaceuticals and Hetero Labs, its Indian arm.
Today, shares of Divi's Laboratories jumped 10% and even scaled a lifetime high during the day, while those of Sun Pharmaceutical Industries and Dr Reddy's Laboratories closed 0.7% and nearly 2.0% higher, respectively.
Gains in most of Nifty Pharma's constituents pushed the index to rise over 2% during the day and scale a lifetime high of 14938.25 points. The sectoral index closed 1.5% higher at 14812.40 points, emerging as one of the top gainers.
Apart from these drugmakers, strong gains were also registered by the media and the metals spaces. Among major frontline sectors, the information technology and banking stocks also saw sharp recovery and managed to retain the gains, as investors used the recent correction to buy the stocks.
Today, the Nifty 50 closed 0.9% higher at 17691.25 points, partially offsetting the over 1% losses witnessed in the previous week. The index had scaled an intra-day high of 17750.90 points. Similarly, the Sensex closed 0.9% at 59299.32 points, after touching a high of 59548.82 points during the day.
The strong buying interest was also seen in the broader market today, with most mid-cap and small-cap indices on the NSE closing over 1% higher.
MOVERS & SHAKERS
Among specific stocks, shares of index-heavy Reliance Industries closed 1.3% higher at 2,556.15 rupees, which also aided the upside for the headline Nifty 50. The sock has risen for the second session today, gaining over 2% during the period.
Further, shares of NTPC closed 4% higher amid reports that the state-run power generator aimed to raise 150 bln rupees through the initial public offerings of three of its subsidiaries by 2023-24 (Apr-Mar).
Additionally, shares of Paras Defence and Space Technologies extended its strong gains from Friday and were locked in a 5% upper circuit today as investors' appetite for the stock remained intact.
Among laggards, shares of Cummins India continued to fall today because new draft regulations, mandating consumers to shift to renewable power generators from diesel-powered ones, are seen hitting the business. The stock closed nearly 3% lower today.
Shares of Grasim Industries closed over 2% lower on news that the income tax department has raised a demand of more than 83 bln rupees as capital gains tax from the company for the assessment year 2018-19, over sale of shares in Aditya Birla Capital.
* Among Nifty 50 stocks, 36 rose and 14 fell
* Among Sensex stocks, 24 rose and 6 fell
* On the NSE, 1,484 stocks rose, 513 fell and 83 were unchanged
* On the BSE, 2,333 stocks rose, 1,016 fell and 192 were unchanged
* Nifty Metals: Up 2.99%; Nifty Pharma: Up 1.54%; Nifty Bank: Up 0.95%
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BSE National Stock Exchange
Sensex: 59299.32, up 533.74 pts (0.91%) Nifty 50: 17691.25, up 159.20 pts (0.91%)
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S&P BSE Sensitive Index Nifty 50
Lifetime High: 60412.32 (Sep 27) : Lifetime High: 17947.65 (Sep 24)
Record Close High: 60077.88 (Sep 27) : Record Close High: 17855.10 (Sep 27)
2021 1st day close: 47868.98 (Jan 1) : 2021 1st day close: 14018.5 (Jan 1)
2021 Closing High: 60077.88 (Sep 27) : 2021 Closing High: 17855.10 (Sep 27)
2021 Closing Low: 46285.77 (Jan 29) : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 60412.32 (Sep 27) : 2021 High (intraday): 17947.65 (Sep 24)
2021 Low (intraday): 46160.46 (Jan 29) : 2021 Low (intraday): 13596.75 (Jan 29)
2020 Closing High: 47751.33 (Dec 31) : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23) : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31) : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24) : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20) : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19) : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28)) : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23) : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26) : 2017 High(intraday): 10515.10 (Dec 26)
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Edited by Mainak Moitra
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