Barometers trade near day's low; pharma stocks in demand

Key benchmark indices traded near the day's low in mid-morning trade. Pharma stocks bucked weak market trend. At 11:28 IST, the barometer index, the S&P BSE Sensex, was down 914.37 points or 2.89% at 30,733.63. The Nifty 50 index was down 255.55 points or 2.76% at 9,006.

In the broader market, the S&P BSE Mid-Cap index was down 2.4% while the S&P BSE Small-Cap index was down 2.4%. The decline in both these indices was lower then the decline in the Sensex.

Sellers outpaced buyers. On the BSE, 630 shares rose and 1426 shares fell. A total of 128 shares were unchanged.

 

Trading sentiment was dented after US oil futures for May plunged below zero as storage for crude runs close to full amid a worldwide glut as demand collapses due to the virus pandemic. A rapidly rising number of Covid-19 infections in India and the resultant deaths also put pressure on bourses. India reported over 14,759 cases of COVID-19 infection and over 590 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty Pharma index jumped 4.24% to 9,537.15, snapping its two-day losing streak.

Divi's Laboratories (up 4.92%), Cadila Healthcare (up 4.7%), Glenmark Pharmaceuticals (up 4.3%), Lupin (up 4.23%), Dr. Reddy's Laboratories (up 4.04%), Sun Pharmaceutical Inds (up 3.37%), Cipla (up 3.14%) and Biocon (up 1.76%) were top gainers in Nifty Pharma segment.

Aurobindo Pharma spurted 15.07% to Rs 622 after the pharmaceutical major informed the exchanges that the USFDA inspection conducted last year on Unit IV facility, has been given a 'Voluntary Action Indicated' (VAI) classification.

Morepen Laboratories was locked in an upper circuit of 10% at Rs 16.07 after the company said it has received license to manufacture Hydroxychloroquine (HCQ) from State Drug Controller, (HP) last week for its Baddi plant in Himachal Pradesh. The company said it is working to commercialize the production of Hydroxychloroquine in both API as well as tablets form. HCQ is a prescription based drug commonly being recommended to Corona patients under treatment for the disease.

Stocks in Spotlight:

Larsen & Toubro (L&T) down 2%. The company during market hours today, 21 April 2020, informed that its construction arm has secured orders from clients for its varied businesses. As per the L&T's classification, the valuation of the 'significant' order stands between Rs 1,000 crore and 2,500 crore.

Ashoka Buildcon slumped 8.21%. The road & highway construction major said it has commenced toll collection on the toll projects of the company and its subsidiaries.

Global Markets:

Asian markets were trading lower as Wall Street tumbled on Tuesday after U.S. crude futures turned negative for the first time in history as the coronavirus pandemic derails the global economy.

In US, stocks finished near session lows Monday as investors watched oil futures crash, overshadowing optimism about plans for a staggered easing of global lockdowns in the wake of the COVID-19 pandemic.

A futures contract for US crude prices crashed and turned negative for the first time in history on Monday, amid a demand collapse due to the coronavirus pandemic. On 20 April, West Texas Intermediate (WTI) settled at -$37.63 a barrel, after going as low as -$40.32. This negative price has never happened before for an oil futures contract.

The June WTI contract, which expires on 19 May, fell about 18% to settle at $20.43 per barrel. Meanwhile, the international benchmark, Brent crude, which has already rolled to the June contract, fell 8.9% to $25.57 per barrel.

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