The Sensex ended with modest losses while the Nifty ended almost flat after a volatile session on Friday. Heavy selling in banks eclipsed rally in pharma shares. Worries about a resurgence in coronavirus cases across the globe spooked investors.
The barometer index, the S&P BSE Sensex lost 134.03 points or 0.34% at 38,845.82. The Nifty 50 index shed 11.15 points or 0.10% at 11,504.95.
Bharti Airtel (up 3.73%), Mahindra & Mahindra (up 2.72%) and Reliance Industries (up 0.27%) supported the indices.
The broader ended on a mixed note. The S&P BSE Mid-Cap index rose 0.26% while the S&P BSE Small-Cap index slipped 0.32%.
The market breadth was negative. On the BSE, 1307 shares rose and 1433 shares fell. A total of 170 shares were unchanged.
Total COVID-19 confirmed cases worldwide stood at 30,071,314 with 9,44,887 deaths. India reported 10,17,754 active cases of COVID-19 infection and 84,372 deaths while 41,12,551 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
The Reserve Bank has decided to conduct purchase of Government securities under Open Market Operations (OMOs) for an aggregate amount of Rs 10,000 crore on 24 September 2020. Accordingly, RBI will purchase Government securities through a multi-security auction using the multiple price method. These include 6.97% GS 2026, 6.45% GS 2029 and 6.68% GS 2031 for Rs 10000 crore. The Reserve Bank reserves the right to decide on the quantum of purchase of individual securities.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee edged higher to 73.455 compared with its previous closing 73.66.
The yield on 10-year benchmark federal paper fell to 6.016% compared with previous closing of 6.033% in the previous trading session.
MCX Gold futures for 5 October 2020 settlement rose 0.26% to Rs 51,586.
In the commodities market, Brent crude for November 2020 settlement rose 23 cents to $43.53 a barrel. The contract rose 2.56% to settle at $43.3 in the previous trading sessions on Tuesday.
Most European shares declined on Friday as investors monitored a rise in coronavirus cases across the continent.
The Bank of England (BoE) on Thursday kept its benchmark interest rate at 0.1% and it left unchanged the size of its bond-buying programme at 745 billion pounds ($966 billion). BoE hinted that it may consider cutting interest rates below zero for the first time in its history as the economy faces a surge in coronavirus infections and the risk of a no-deal Brexit.
The World Health Organization's (WHO) regional director for Europe on Thursday warned of a "very serious situation" unfolding in Europe. Weekly cases have now exceeded those reported when the pandemic first peaked in Europe in March, said WHO's Hans Klug.
Asian shares advanced on Friday following pledges by central bankers globally to do whatever it takes to support the economic recovery.
US stocks fell on Thursday as technology-related shares slid for a second day. Facebook and Amazon were down 3.3% and 2.3%, respectively. Netflix closed 2.8% lower. Alphabet dropped 1.7% while Apple and Microsoft were both down at least 1%. Snowflake, an IPO which captivated Wall Street on Wednesday as it doubled in its debut, was off by 10.4%.
US President Donald Trump said on late Wednesday that the U.S. could distribute a vaccine as early as October, contradicting the director of the Centers for Disease Control and Prevention, who told lawmakers earlier in the day that vaccinations would be in limited quantities this year and not widely distributed for six to nine months.
Buzzing Domestic Segments:
The Nifty Bank index fell 1.30% to 22,031.05. The index witnessed steep volatility today. It rose 0.67% at the day's high of 22,469.40 in morning trade. It slumped 2.40% at the day's low of 21,784.90 in mid-afternoon trade.
IDFC First Bank (down 2.66%), HDFC Bank (down 2.39%), Bandhan Bank (down 2.16%), Kotak Mahindra Bank (down 2.07%), Punjab National Bank (down 1.95%), RBL Bank (down 1.63%), Federal Bank (down 1.52%), State Bank of India (down 1.48%), Bank of Baroda (down 0.99%) and IndusInd Bank (down 0.66%) declined.
ICICI Bank (up 0.27%) and Axis Bank (up 0.1%) bucked trend.
The Nifty Pharma index jumped 4.98% to 12,320.90. The index has risen 9.68% in four sessions.
Divi's Laboratories (up 4.24%), Glenmark Pharmaceutical (up 3.31%), Wockhardt (up 3.14%), Sun Pharmaceutical Industries (up 2.23%), Aurobindo Pharma (up 2.14%), Alkem Labs (up 0.63%), Ipca Laboratories (up 0.63%) and Abbott India (up 0.48%) jumped.
Dr. Reddy's Laboratories soared 10.36%. The drug major announced settlement of U.S. Revlimid (lenalidomide) capsules patent litigation with Celgene. In settlement of all outstanding claims in the litigation, Celgene has agreed to provide Dr. Reddy's with a license to sell volume-limited amounts of generic lenalidomide capsules in the U.S. beginning on a confidential date after March 2022 subject to regulatory approval. The agreed-upon percentages are confidential. Dr. Reddy's is also licensed to sell generic lenalidomide capsules in the U.S. without volume limitation beginning on 31 January 2026. Revlimid is a trademark of Celgene, a wholly owned subsidiary of Bristol Myers Squibb.
Lupin rallied 4.58% while Cipla jumped 7.29%. Perrigo Company, the Dublin-based maker of over-the-counter and generic health products, already halted production and distribution of the aerosols. These actions are being taken out of an abundance of caution as a result of complaints that some units may not dispense due to clogging. Perrigo's generic albuterol sulfate inhalation aerosol was developed in partnership with and manufactured by Catalent Pharma Solutions.
Cadila Healthcare jumped 3.79% after the company received final approval from the US Food and Drug Administration (USFDA) to market Potassium Chloride extended-release tablets in the strengths of 750 mg and 1500 mg. The medication is a mineral supplement used to treat or prevent low amounts of potassium in the blood and will be manufactured at the group's formulation manufacturing facility at the SEZ, Ahmedabad.
Stocks in Spotlight:
Hindalco Industries rose 2.16% while Hindustan Copper (HCL) fell 2.01%. Hindalco Industries on Thursday signed an agreement to procure copper concentrate from state-owned Hindustan Copper. HCL is the only producer of copper concentrate in India. Under this MoU, Hindalco will use about 60% of copper concentrate produced by Hindustan Copper. This partnership is a major step towards import substitution and reducing the nation's dependence on imported copper concentrate.
Hindustan Zinc fell 1.16% after the company proposed to raise Rs 4000 crore by offering debentures in one or more tranche. The company proposes to offer rated, unsecured, redeemable, non-cumulative, non-convertible debentures aggregating upto Rs 4,000 crore in one or more tranches.
Sterling and Wilson Solar (SWSL) fell 1.83%. The company announced that it has signed an order of 106.71 MW worth about Rs 462 crore in Chile. The order has been received from a global independent power producer (IPP), work for which is expected to begin in Q4 FY 2021. SWSL has a strong presence in the region with one project of 93.3 MW in Argentina and three projects of 588 MW under construction in Chile.