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Nifty hovers below 11,100; Torrent Pharma up 10%

Capital Market 

Benchmark indices were trading with minor cuts in mid morning trade. Global cues were subdued following a record contraction in US gross domestic in the second quarter.

At 11:22 IST, the barometer index, the S&P BSE Sensex, was down 84.98 points or 0.23% at 37,651.63. The Nifty 50 index fell 10.5 points or 0.09% at 11,091.65.

In broader market, the S&P BSE Mid-Cap index was up 0.27% while the S&P BSE Small-Cap index was up 0.51%.

The market breadth was negative. On the BSE, 995 shares rose and 1255 shares fell. A total of 113 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 207.30 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 387.24 crore in the Indian equity market on 30 July, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 17,241,298 with 672,062 deaths. India reported 5,45,318 active cases of COVID-19 infection and 35,747 deaths while 10,57,805 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty Pharma index gained 2.05% to 10,986.95. The index has risen 9.1% in four trading days.

Aurobindo Pharma (up 4.2%), Cipla (up 2.58%), Cadila Healthcare (up 2.52%), Alkem Laboratories (up 2.1%), Divi's Laboratories (up 1.99%), Lupin (up 1.64%) and Sun Pharma (up 1.26%) were top gainers in pharmaceutical space.

Torrent Pharmaceuticals jumped 10% to Rs 2,680.5 after the company reported a 48.6% jump in consolidated net profit to Rs 321 crore on 0.88% rise in total income to Rs 2,060 crore in Q1 June 2020 over Q1 June 2019. Consolidated EBITDA was up 19% year on year to Rs 664 crore in Q1 June 2020 over Q1 June 2019. Torrent Pharma's R&D spends in Q1 June 2020 were at Rs 108 crore (5% of revenue from operations), declining 21% from Rs 136 crore (7% of revenue from operations) in Q1 June 2019.

Biocon gained 1.5% after the biopharmaceuticals company said on Friday a private equity fund managed by Tata Capital will invest Rs 225 crore ($30 million) in its biosimilar business. As per the terms of the proposed agreement, Tata Capital will invest Rs 225 crore for a 0.85% minority stake in the biosimilar business, valuing Biocon Biologics at an equity valuation of Rs 26,250 crore and an enterprise valuation of Rs 30,400 crore. Post the completion of this transaction, Biocon will hold 95.25% stake in Biocon Biologics. The equity infusion by Tata Capital will enable Biocon Biologics' future growth through prudent capital allocation, while the company continues to invest in R&D and manufacturing to meet its growing demands of patients worldwide.

Stocks in Spotlight:

HDFC down 1.34%. The housing finance major on Thursday (30 July 2020) said that its shareholders approved fund raising up to an amount not exceeding Rs 1.25 lakh crore. The corporation's shareholders also approved sale of shares held in HDFC Life Insurance Company and HDFC ERGO General Insurance Company.

Wipro rose 1.25% after the company announced that Metro Bank, a large UK based retail and commercial bank, has awarded a multi-year contract to deliver and transform Testing and Environment Management Services.

Westlife Development fell 0.24%. The company reported a consolidated net loss of Rs 57.56 crore in Q1 FY20 as compared to a net profit of Rs 6.44 crore in Q1 FY20. Total Revenues declined 75.4% on a year-on-year (YoY) basis to Rs 93.89 crore in the June quarter. The company reported a negative operating EBITDA of Rs 57.68 crore with a negative operating EBITDA margin of 61.4% in Q1 June 2020. It had reported a operating EBITDA of Rs 32.63 crore with a operating EBITDA margin of 8.5% in Q1 June 2019. The Quick Service Restaurants operator recorded a pre-tax loss of Rs 76.82 crore in Q1 FY21 as compared to a pre-tax profit of Rs 8.51 crore in Q1 FY20.

Global Markets:

Asian markets were trading mildly lower following a record contraction in US gross domestic in the second quarter. Markets in Singapore, Malaysia and Indonesia are closed for a holiday on Friday.

China's official manufacturing Purchasing Managers' Index for July came in above expectations on Friday. The manufacturing PMI for July was at 51.1 from June's 50.9, according to the country's National Bureau of Statistics.

Japan's industrial output snapped four months of decline in June. Official data released on Friday showed factory output increased 2.7% in June from the previous month when it hit its lowest level since March 2009 during the financial crisis.

US stock futures rose after some of the biggest tech stocks Facebook, Amazon, Alphabet and Apple reported quarterly results that beat high expectations. Apple also announced a 4-for-1 stock split.

The S&P 500 and Dow closed lower on Thursday after data painted a worrying economic picture on a crucial day for corporate earnings reports. The Nasdaq eked out a positive finish as investors braced for a litany of quarterly results from behemoths of the technology and e-commerce world.

In economic data, a first reading on U.S. gross domestic product data for the second quarter confirmed the pandemic pummeled the economy. US GDP collapsed at a 32.9% annualized rate during the second quarter, following a 5% slump in the first quarter.

Investors also worried about the expiration of enhanced employment benefits on Friday as US Congress was no closer to a deal on Thursday to extend or replace the extra $600-per-week in payments to tens of millions thrown out of work by the coronavirus.

President Donald Trump raised the idea of a delay in elections. The idea was immediately rejected by both Democrats and his fellow Republicans in Congress, the branch of government with the power to make that change.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, July 31 2020. 11:20 IST