Sensex, Nifty at day's low; liquor stocks spurt

key benchmarks extended losses and hit the day's low in mid-afternoon trade. The Nifty descended towards the 9300 mark. Negative global cues, dismal domestic economic data and weak earnings impacted trading sentiment.

At 14:26 IST, the barometer index, the S&P BSE Sensex, was down 1903.93 points or 5.65% at 31,813.69. The Nifty 50 index was down 537.35 points or 5.45% at 9,322.55.

In the broader market, the S&P BSE Mid-Cap index fell 3.96% while the S&P BSE Small-Cap index shed 2.92%.

There were more sellers than buyers. On the BSE, 522 shares rose and 1818 shares fell. A total of 162 shares were unchanged. In the Nifty 50 index, 4 shares advanced while 46 shares declined.

Buzzing Segment:

Shares of liquor makers jumped after the Centre's lockdown 3.0 that came into effect from Monday allows opening of liquor shops with strict social distancing norms. Associated Alcohols & Breweries (up 17.59%), G.M. Breweries (up 13.47%), Radico Khaitan (up 6.48%), United Breweries (up 5.95%), Globus Spirits (up 4.98%) and United Spirits (up 2.33%) spurted.

The Maharashtra government on Sunday allowed the functioning of standalone liquor shops even in Covid-19 affected Mumbai and Pune - both in red zones. Shops selling liquor as well as non-essential goods will have to ensure six-feet distance between two people and not allow more than five people at a time.

Stocks in Spotlight:

Polycab India (PIL) fell 4.11%. PIL on 2 May 2020 said that it has signed an agreement with Trafigura, Singapore, to acquire 50% stake in Ryker Base thereby terminating the existing joint venture. The company had entered into a 50:50 JV with Trafigura in 2016 to incorporate Ryker with an aim to strengthen backward integration of its operations and improve quality of its key input i.e., copper.

Post Trafigura's global strategic decision to exit from value-add manufacturing businesses in India where it is a JV partner, PIL decided to acquire balance 50% stake in Ryker from Trafigura making Ryker a wholly owned subsidiary of PIL. The purchase consideration is likely to be around $4 Million (Rs 300 million).

State-run MOIL rose 3.35% to Rs 134.05 after the company said it raised product prices by 45% effective 1 May 2020. The company said prices of all grades of ferro, SMGR grades (Mn 30% & Mn 25%), fines and chemical grades have been increased with effect from Friday, 1 May 2020 by 45% on the prices prevailing since 1 April 2020. The announcement was made on Saturday, 2 May 2020.

Aurobindo Pharma added 5.01% to Rs 657.30 after the pharmaceutical major received the final approval from the United States Food and Drug Administration (USFDA) to manufacture and market Flucytosine capsules. The company said the product will be launched in June 2020.

Alembic Pharmaceuticals gained 2.37% to Rs 763.60 after the US drug regulator classified the company's Panelav facility as Voluntary Action Indicated (VAI). Inspection at the said facility was conducted by USFDA from 9 March 2020 to 13 March 2020. VAI means USFDA accepted the company's response to its observations. The announcement was made during market hours today, 4 May 2020.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee edged lower to 75.73 compared with its previous closing of 75.092.

The yield on 10-year benchmark federal paper fell to 6.084% as compared with 6.11% in the previous trading session.

In the commodities market, Brent crude for June 2020 settlement was down 64 cents to $25.8 a barrel. The contract fell 0.15% to settle at $26.44 a barrel in the previous trading session

MCX Gold futures for 5 June 2020 settlement added 0.64% to Rs 45,819.

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