Here are the key highlights from today's trading session:
1. Sensex & Nifty close in the green for 5th straight day
2. Nifty closes above 11,700 for the 1st time since February 25
3. Midcaps underperform with the index closing 0.6% lower
4. Sensex gains 304 points to 39,879 & Nifty 76 points to 11,739
5. Nifty Bank jumps 111 points to 22,965 while Midcap slips 88 points to 17,128
6. Reliance, HDFC Bank, Infosys & HDFC top contributors to Nifty
7. Titan top Nifty gainer after positive commentary on Q2 business, stock up 4%
8. Autos continue to move higher on improved demand; Bajaj Auto, Hero MotoCorp up 3% each
9. Reliance gains 2% on ADIA's Rs 5,513 crore investment in Reliance Retail
10. Bajaj Finance top Nifty loser after reporting lowest AUM growth in Q2
11. Govt’s deregulation plan for natural gas lifts ONGC & Oil India
12. Market Breadth favours declines; advance-decline ratio at 2:3
Closing Bell: Sensex ends 300 points higher, Nifty at 11,738; RIL contributes most gains, up over 2%
Indian indices ended for the fifth day on Wednesday led by gains in Reliance Industries after Abu Dhabi Investment Authority said that it will invest Rs 5,512.50 crore in Reliance Retail Ventures. Other heavyweights Titan, HUL, Maruti and M&M also contributed to the benchmarks.
The Sensex ended 300 points higher to 39,878.95 while the Nifty50 index ended at 11,738.85, up over 76 points. Surprisingly, broader markets ended lower as compared to the benchmarks.
Nifty Auto was the best-performing index of the day, up over 1% while Nifty Media closed over 2 percent lower.
Titan, Bajaj Auto, Hero MotoCorp, Maruti Suzuki and RIL were the Nifty50 top gainers while Bajaj Finance, BPCL, Tata Motors, Hindalco and Power Grid were the index top losers.
India Volatility Index ended 2.2 percent higher, above the mark of 20 at 20.1. 728 stocks on the NSE ended with gains while 1,131 stocks ended with losses.
Glenmark Pharma gets USFDA nod to market drug for relapsing multiple sclerosis
Drug major Glenmark Pharma on Wednesday said it has received final approval from the US health regulator for Dimethyl Fumarate delayed-release capsules, used for treatment of relapsing forms of multiple sclerosis in adults. The approved product is a generic version of Biogen Inc’s Tecfidera delayed-release capsules. Glenmark Pharmaceuticals Inc., USA, has been granted final approval by the United States Food and Drug Administration (USFDA) for Dimethyl Fumarate delayed-release capsules in the strengths of 120 mg and 240 mg, Glenmark said in a regulatory filing. Quoting IQVIA sales data for the 12 month period ending August 2020, Glenmark said Tecfidera delayed-release capsules, 120 mg and 240 mg, market achieved annual sales of approximately USD 3.8 billion.
Nifty50 index weightage: RIL, IT witness highest increase in 2020
2020 has been a volatile year for the markets. The Nifty50 index has not only witnessed massive volatility this year but also fluctuation in weights of various sectors in the index. Brokerage house Motilal Oswal highlighted these changes in a recent report.
Although Nifty has witnessed significant volatility over the past quarter, it has recovered considerably from March 2020 lows and has managed to reclaim the psychological levels of 10,000.
According to MOSL, the IT sector has seen the highest increase in weightage in this year. It has risen 400 bps to 16.8 percent in September 2020 from 12.8 percent in December 2020. The Nifty IT index has also surged 33 percent in 2020 (YTD). Click here to read more
Macquarie raises TP on Solara Active Pharma by over 40%; says re-rating to continue
The share price of Solara Active Pharma climbed up to 19 percent on Wednesday after Macquarie raised its target price to Rs 1,680 per piece. The stock rallied as much as 19 percent to Rs 1,248.70. It pared some gains to trade 12 percent higher to Rs 1,174 on the NSE, at 2 pm.
Solara is a top 3 pure-play API manufacturer in India, stated Macquarie's report. The company was formed after the demerger of Strides Pharma and Sequent Scientific, and thus benefits from a legacy of three decades in API space, the report added. This makes it one of the strongest API players in the market today!
Macquarie noted that Solara's strategy of working with customers on a long-term basis (50-50 percent contracts are long-term) rather than capitalising on short-term opportunities will lead to higher wallet share. Hence, it believes it's growth is more sustainable than its API peers.
According to the report, it has a strong regulatory track-record and has scope of a re-rating further ( stock up 195 percent in past one year v/s Nifty's 4 percent). We believe the company is in it for a long haul.
Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking): Positive cues from the global markets led to another gap up opening for Nifty yesterday. The bulls are firmly in control over the indices as the Nifty continued its upmove and surpassed the swing high of 11,618. Honestly, this sharp upmove has surprised us to an extent and as we did not expected such a sharp surge, we have been selective and have not participated aggressively in this move. Now, although the oscillator readings on the hourly charts are in overbought zone, the momentum remains strong and hence, traders are advised to take a sector/stock specific approach and look for trading opportunities.
Also, the earnings season for the July-September quarter kicks of now with the IT giant TCS declaring its numbers today. This too will lead to some stock specific momentum. The immediate support for the Nifty are now placed around 11,560 and 11,520 whereas resistances is seen in the range of 11,750-11,800, added Chavan.
Tighter norms are based on misinformation & misperception. It’s applicable to all companies, not just Indian IT, says Shivendra Singh of NASSCOM
State Bank of India's outgoing Chairman, Rajnish Kumar, the man credited with overseeing the rescue mission for Yes Bank, today opened up about the conditions under which the troubled lender was saved.
By the time Reserve Bank of India had put Yes Bank under moratorium in early March and limited withdrawals from the bank, conversations had begun about how the bank would be saved. In the end, it took eight financial institutions led by State Bank of India and Rs 10,000 crores of combined capital infusion, to resuscitate Yes Bank.
“As chairman you are supposed to take many decisions and all decision making is a collective decision making. Yes Bank definitely – the stage at which SBI stepped in, it was in ICU counting its last breath," Kumar said. Read more on this here
Stock Update: Glenmark's share price traded 0.38 percent lower to Rs 488.75 on the NSE after the company said that it has been granted final approval by the U.S. FDA for its Dimethyl Fumarate Delayed-Release Capsule, 120 mg and 240 mg. The drug is the generic version of Tecfidera Delayed-Release Capsule of Biogen, Inc., the company said in its exchange filing. The total sales for Tecfidera Delayed-Release Capsule, 120 mg and 240 mg was approximately $3.8 billion, as per data from the IQVIA for the most recent 12-months ending August.
Keshav Lahoti, Equity Analyst, Angel Broking on multiplex stocks: We believe in a couple of weeks post opening restrictions will start easing off. We are positive on multiplex stocks PVR and Inox Leisure given that long term fundamentals are still intact for the sector and stocks prices have corrected ~40% due to covid. We prefer Inox Leisure over PVR as it has a strong balance sheet and it is trading at discount compared to PVR. Although we believe in the short term, there will be challenges for the companies.