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Sensex gains 180 pts, broader indices outperform; Glenmark Pharma soars 27%

All that happened in the markets today

Image SI Reporter New Delhi
markets

Cipla hit a fresh 52-week high of Rs 696 on the BSE

Equity market ended on a positive note on Monday as Drugs Controller General of India's  (DCGI) approval to select pharma companies to manufacture and market "potential" Covid-19 drugs lifted investor sentiment, resulting in broad-based buying. 

Glenmark Pharmaceuticals was the stock of the day as the scrip ended 27 per cent higher at Rs 520 on the BSE after the company said it has launched antiviral drug Favipiravir, under the brand name FabiFlu, for the treatment of patients with mild to moderate Covid-19. The stock hit a 52-week high of Rs 572.70 during the session. READ MORE

Headline index, S&P BSE Sensex, gained 180 points or 0.52 per cent to settle at 34,911.32, with Bajaj Auto (up around 7 per cent) being the top gainer and HDFC (down over 1 per cent) the biggest loser. 

On the NSE, the broader Nifty50 index ended above 10,300-mark at 10,311, up 67 points or 0.65 per cent. of 50 constituents, 37 advanced and 13 declined. 

In the broader market, both mid and small-cap indices outperformed the benchmarks. The S&P BSE MidCap index rose 2 per cent and the S&P BSE SmallCap gained around 1.4 per cent.

Sectorally, barring IT stocks, all the other indices ended in the green. Nifty Bank rallied 1.74 per cent while Nifty PSU Bank jumped nearly 4 per cent to 1,473.60 levels.

IT stocks were under pressure as the US President Donald Trump said late on Saturday he would announce new restrictions on visas within a couple of days to block the entry of certain foreign workers and protect Americans struggling with a job market devastated by the coronavirus pandemic. Nifty IT index ended 0.25 per cent lower at 14,464 levels. 

Buzzing stocks

Besides Glenmark, other stocks that were in focus included RIL, and Cipla. 

Cipla hit a fresh 52-week high of Rs 696 on the BSE after the company launched the generic version of Gilead Sciences' Remdesivir, lyophilized powder for injection, 100 mg under its brand name 'Cipremi'. The stock ended at Rs 655.80, up 3 per cent on the BSE. 

Reliance Industries (RIL) hit a fresh lifetime high of Rs 1,804.10 on the BSE during the day. It became the first Indian firm to hit a market valuation of  $150 billion, helped by a continuous rally in its share price. The stock, however, ended 0.7 per cent lower at Rs 1,747. READ MORE

Global markets

A recovery in world stocks faltered on Monday as the threat of rising coronavirus infections in parts of Europe and the United States curbed risk appetite, boosting demand for safe-haven gold.

European stocks fell 0.3 per cent at the open after Germany’s coronavirus reproduction rate rose over the weekend to 2.88 on Sunday from 1.06 on Friday, health authorities said.

US stock futures were up 0.8 per cent, continuing to shrug off a spike in infections. In Asia, Japan’s Nikkei fell 0.2 per cent and MSCI’s broadest index of Asia-Pacific shares outside Japan was almost flat.

In commodities, oil prices were steady, supported by tighter supplies from major producers but held in check by concerns over a record rise in coronavirus infections worldwide that could stall a recovery in fuel demand.

Brent crude rose 10 cents, or 0.2 per cent, to $42.29 a barrel at the time of writing of this report, while US crude for August delivery was at $39.87 a barrel, up 4 cents, or 0.1 per cent.

(With inputs from Reuters)
4:19 PM

MARKET COMMENT:: Vinod Nair, Head of Research at Geojit Financial Services

"In spite of renewed global concerns regarding the second wave of coronavirus infections, Indian markets ended on a positive note. Markets chose to focus on regulatory approvals to domestic pharma companies to manufacture covid-19 treatment drugs and the expectation that this would lead to faster recoveries. As such, the pharma index was the major sectoral gainer in today’s trade. Concerns remain with regard to the increasing infections and the ongoing situation with China, and investors are advised to keep a short term outlook for the time being."
3:45 PM

SECTOR WATCH:: Nifty IT ends in the red

3:42 PM

MARKET AT CLOSE:: Gainers and losers on the S&P BSE Sensex

3:37 PM

CLOSING BELL

The S&P BSE Sensex rallied 180 points or 0.5 per cent to end at 34,911 while NSE's Nifty ended at 10,311, down 67 points or 0.65 per cent.
3:23 PM

INDEX LOSER:: HDFC down 1%

3:18 PM

BUZZING STOCK:: PTC India zooms 15%

3:10 PM

RBI bars YES Bank from coupon payment on Upper Tier II bonds

The private lender had approached banking sector regulator RBI seeking approval to pay interest due as on June 29, 2020 for Upper Tier II Bonds. These Unsecured Non-Convertible Upper Tier II bonds carry coupon of 10.25 per cent.
 
Its overall capital adequacy ratio stood at 8.5 per cent at end of March 2020 with Common Equity tier I (CET I) of 6.3 per cent. Its stock was trading 1.8 per cent lower on BSE. The capital adequacy ratio is below the regulatory requirements. READ MORE

3:09 PM

MARKET UPDATE: Sharp fall in Sensex from day's high

2:59 PM

Top contributors to today's up move in Sensex

2:54 PM

Stocks that hit 52-week high on BSE today

COMPANY PRICE(rs) 52 WK HIGH CHG(%)
ADANI GREEN 441.60 441.60 4.99
ALEMBIC PHARMA 952.00 984.00 0.64
BAYER CROP SCI. 5890.00 6091.00 -1.70
CIPLA 660.50 696.00 3.67
DIXON TECHNOLOG. 5586.90 5819.10 -1.77
» More on 52 Week High
2:50 PM

Bank of Baroda Q4 preview: Covid-19, telecom stress may keep earnings muted

Hit by business disruption amid Covid-19 outbreak and merger with Dena and Vijaya Bank, state-owned Bank of Baroda is likely to post muted March quarterly earnings on Tuesday, June 23. While analysts remain divided on the bank’s net profit, which ranges from Rs 356 crore to (-) Rs 1,659 crore; asset quality figures due to exposure to the telecom sector would be under their radar. READ MORE
Bank of Baroda

2:41 PM

Top gainers on BSE today

COMPANY PRICE(rs) CHG(%)
GLENMARK PHARMA. 534.45 30.64
INDIABULLS HOUS. 250.85 22.88
PTC INDIA 47.15 15.42
IRB INFRA.DEVL. 81.10 14.71
INDIAN BANK 64.30 14.31
» More on Top Gainers
2:29 PM

BROKERAGE VIEW:: ICICI Securities on Shalby Ltd

Like other hospitals, Q4 performance was impacted by Covid 19. This is likely to continue for some time and more so for Shalby where significant traction is from elective surgeries (read arthroplasty) although management remains hopeful of early recovery. Arthroplasty continues to dominate its revenue pie although it has been seeing greater traction in other specialities as well. Leverage free b/s, strong margins and free cash flow generation are some of the strongholds. However, skewed margins, weak return ratios are still major concerns. We value the company on an SOTP basis by valuing hospitals (above six years) at 6x FY22E EV/EBITDA and hospitals (below six years) at 1x FY22E EV/sales. We arrive at an SOTP target price of Rs 70. Ramp up in below six years hospitals will be key to watch for re-rating.
2:22 PM

BUZZING STOCK:: IDFC First Bank soars 10%

2:11 PM

MARKET UPDATE:: IRB Infra jumps 15%

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First Published: Jun 22 2020 | 7:37 AM IST

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