The Nifty closed at a record high, while the Sensex closed above the 51,000-mark on Thursday. Asian markets witnessed mixed close, with shares indices Japan hovering near Wednesday’s close. US GDP and jobless claims data are expected later in the day
Nifty ended the day at a record high of 15,337.85, up 36.40 points or 0.24%, asthe Sensex climbed 97.70 points, to 51,115.22. The nifty’s highest close to date has been 15,431.75 on 16 February. The BSE midcap and smallcap indices closed 0.54% and 0.34% higher. The Nifty midcap100 and smallcap100 closed 0.54% and 1.01% higher, respectively. On the 30-share Sensex, HDFC Bank, Bajaj Finance, ONGC, and eight other stocks ended in red, while SBI, Kotak Mahindra Bank, Axis Bank, and 16 other stocks ended in green.
Glenmark Lifesciences, 4 others eye IPOs totaling ₹7,000 cr
Amidst the raging second wave of the covid-19 pandemic and many fearing a third wave, the healthcare sector is in the limelight for the second consecutive year as several pharma and life sciences companies are lined up to tap the equity markets through IPOs over the next few months, according to investment bankers.
Five such companies which have firmed up their initial public offering (IPO) plans are Glenmark Lifesciences, a fully-owned arm of Glenmark Pharmaceuticals, the city-based bulk drugs firm Supriya Lifesciences, drug formulations firm Windlass Biotech, Bain Capital-backed Emcure Pharma and CX Partners-funded Veeda Clinical Research.
According to investment-bankers, they are planning to mop up over ₹ 7,000 crore in primary share sales.
FMCG, Pharma drag
Kotak Mahindra Bank, TCS, Axis Bank drive gains
Rural demand to remain muted in FY22 due to second covid wave: India Ratings
The economic impact of the second wave of the coronavirus pandemic will be felt more through loss of demand impulse in rural India than in urban centres despite the Indian Meteorological Department has forecasting a near normal monsoon, India Ratings and Research said on Thursday. (Read here)
No intention of selling a stake in IGL or Petronet LNG: BPCL
State-run Bharat Petroleum Corporation Ltd (BPCL), which is bound for privatization, has no intention to sell its stakes in either Indraprastha Gas (IGL) or Petronet LNG Ltd (PLL), a company official said on Thursday. (Read here)
TTK Healthcare’s board approves dividend
The company’s board approved a dividend of ₹6 per share of ₹10 each for FY21 to be despatched within 21 days from the date of AGM, subject to the approval
of the shareholders.
Paytm targeting biggest-ever IPO in India
Paytm, India’s leading digital payments provider, is aiming to raise about ₹21800 crore in an initial public offering late this year, according to a person familiar with the deal, in what could be the country’s largest debut ever. (Read more)
Banknotes in circulation increased during 2020-21 amid Covid pandemic: RBI
The Reserve Bank of India on Thursday said banknotes in circulation witnessed higher than average increase during 2020-21, on account of precautionary holding of cash by people due to the COVID-19 pandemic, and its prolonged continuance. (Read more)
Reits to face near-term weakness due to covid headwinds
Real estate investment trusts or Reits in India have faced a decline in overall portfolio vacancy levels by 4-6% due to continued work-from-home and the second wave leading to deferment of leasing decisions by occupiers. (Read here)
Mindtree confident of double-digit growth in FY22: Emkay Research
Mindtree Ltd is confident of delivering double-digit growth in FY22, Emkay Research said in a report dated 26 May, based on the latest investor and analyst connect. (Read here)
BigBasket and iD Fresh Food partner to launch ‘iD Fresho’
Packaged foods company iD Fresh Food and online grocery retailer BigBasket have launched a co-branded label, ‘iD Fresho’, which will sell iD’s idly-dosa batter and ready-to-cook parotas. The move will help iD expand its direct-to-consumer business and reach a million households in India. (Read here)
Strides Pharma, TLC to retail black fungus drug Amphotericin
Taiwan-based TLC and Strides Pharma Science Ltd announced that the Central Drugs Standard Control Organization (CDSCO) of India has approved TLC’s
New Drug Application (NDA) of Amphotericin B Liposome for injection 50mg for immediate importation. AmphoTLCTM will be imported from Taiwan by Stelis Biopharma Pvt. Ltd, the biotech arm of Strides group.
Power Grid, CIL top drags
Working closely with Jio to build affordable smartphone: Pichai
Google CEO Sundar Pichai on Thursday said the company continues to engage closely with partner Jio on the initiative of building an affordable smartphone and that work is underway on the project.
Last year, Google had picked up a 7.7 per cent stake in Jio Platforms for ₹33,737 crore. It had also entered into a commercial agreement with Jio Platforms to jointly develop an entry-level, affordable smartphone.
Google to comply with India’s new IT rules: Sundar Pichai
Google chief executive, Sundar Pichai, has reiterated the company’s plans to comply with India’s new Intermediary Rules. According to a report in the Economic Times, Pichai said the company’s local teams are holding talks with the government, but it will comply with local laws. He also said the company will continue to publish its transparency reports, which include data on the legal information requests it gets from governments. (Read here)
BPCL top gainer
Indian economy not as hard hit as first wave but uncertainties remain, says RBI
India’s economy has not moderated to the extent it did during the first wave but uncertainties can act as a deterrent in the short term, the Reserve Bank of India said on Thursday.
In its annual report, the central bank said the country’s growth prospects now essentially depend on how fast India can arrest the second wave of COVID-19 infections.
“The recovery of the economy from the COVID-19 will critically depend on the robust revival of private demand that may be led by the consumption in the short-run but will require acceleration of investment to sustain the recovery,” the central bank said in its annual report.
Top gainers at this hour
VIX down; broader indices gain
Lupin receives $50 mn from Boehringer Ingelheim
Drug major Lupin on Thursday said it has received payment of $50 million (around ₹ ₹363.5 crore) from Germany-based Boehringer Ingelheim for achievement of key milestones by its novel cancer drug, a potential target therapy for patients with difficult-to-treat cancers.
In a regulatory filing Lupin announced “the achievement of key milestones for Lupin’s MEK inhibitor compound (LNP3794) that is planned for development by Boehringer Ingelheim in combination as potential targeted therapy for patients with difficult-to-treat cancers.”
Bharat Biotech submits new request to Brazilian regulator on GMP issues for Covaxin
Bharat Biotech which faced a red flag from Brazil’s health regulator for supply of COVID-19 vaccine Covaxin to that country over the issues of Good Manufacturing Practices in its plant, has filed a new request to the Brazilian authorities for certification.
Manappuram Finance’s gold loan auctions surge is a sign of distress in economy
Manappuram Finance Ltd reported a 5.6% sequential contraction in its gold loan portfolio for the March quarter, sharper than what analysts had estimated because the company ended up auctioning a whopping Rs404 crore worth of gold to recover money.
Cummins India stock slips 6% on poor Q4 earnings, uncertain outlook
Shares of Cummins India Ltd fell nearly 6% on the National Stock Exchange in opening deals on Thursday, reacting to the company’s disappointing Q4FY21 earnings. It missed estimates on key earnings parameters of revenue growth and operating margins. Sales at Rs1,246 crore was 12% below consensus estimates on weaker exports. Exports at Rs255 crore and domestic sales at Rs976crore were also lower than estimates.
SoftBank shifts to foreign banks as borrowing soars
SoftBank Group Corp’s bank borrowing climbed by 42% in the year to March-end with the increase shouldered by foreign lenders, company filings showed on Thursday.
Borrowing from the conglomerate’s principal lenders rose to 4.98 trillion yen ($46 billion) in the last business year, with main bank Mizuho Financial Group Inc the only Japanese lender remaining in the top three backers.
IT, auto gain; banks, pharma drag
India reports 2,11,298 COVID-19 cases, 3,847 death
India’s covid-19 infection tally climbed to 2,73,69,093 as 2,11,298 more people tested positive for the disease in a day, while the country’s recovery was recorded at 90%, according to the Union health ministry on Thursday.
The death toll due to the disease climbed to 3,15,235 with 3,847 fresh fatalities being reported in a span of 24 hours, the data updated at 8 am showed.
Also, 21,57,857 covid-19 tests were conducted on Wednesday, taking the total number of such exams done so far in the country to 33,69,69,353.
The daily positivity was recorded at 9.79%. It has been less than 10 per cent for three consecutive days now, the ministry said.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments on the NIfty’s trajectory
“The markets are struggling around the 15,300 level. It is imperative that we get past this on a closing basis. That will ensure we head to 15500-15600 as the next possible target for the Nifty. 15,000 is a good support level for the index and as long as we can keep above that, we are in bullish terrain.”
GSK gets US clearance for covid antibody drug to treat 12 years and above
The US FDA has granted Emergency Use Authorisation for GlaxoSmithKline plc (GSK) & Vir Biotech’s drug Sotrovimab to treat mild-to-moderate Covid-19 in high risk adults & paediatric patients. The U.S. Food and Drug Administration cleared the drug, called VIR-7831 or sotrovimab, for people older than 12 with mild to moderate infection who are at risk of progressing to severe Covid-19, GSK said. (Read here)
Govt to rake in over ₹6,665.76 crore in dividend income from BPCL
The Union government which holds a 52.98% stake in state-run Bharat Petroleum Corporation Ltd (BPCL) will receive Rs6,665.76 crore in from the company which announced a dividend of Rs58 per equity share, including a one-time special dividend of ₹35 per equity share of ₹10 each, for the financial year ended March 31, 2021. (Read here)
Zydus seeks DCGI nod for monoclonal antibodies cocktail clinical trials
Zydus has announced biological therapy ZRC-3308, used to treat mild COVID-19. The pharmaceutical company now seeks DCGI (Drugs Controller General of India) nod to undertake clinical trials for monoclonal antibodies cocktail that can neutralise Covid infection. (Read here)
Oil slips on possible return of Iranian supply as nuclear talks progress
Oil prices fell on Thursday but stayed within the tight range they have been in all week, as optimism on the summer driving season in the United States and Europe offset concerns about demand in India and a potential supply increase from Iran.
Brent crude fell 44 cents, or 0.6%, to $68.43 a barrel at 0220 GMT, erasing Wednesday’s gain of 22 cents. Brent has traded between $68 and $69 for most of this week.
US West Texas Intermediate (WTI) crude fell 43 cents, or 0.7%, to $65.78 a barrel, after a rise of 14 cents on Wednesday, but still in the $65-$66 range it has been this week.
The Sensex opened at 51,128.80, up 111 points, while the Nifty was at 15,323.95 on Thursday. Bank, FMCG and realty stocks trail
The Sensex was at 51,097.38, up 79.86 points, or 0.16% at market pre-opening, while the Nifty was at 15,301.45, up 93.00 points, or 0.61% on Thursday.
Dominica has agreed for Choksi’s repatriation to India: Antigua PM
Antigua and Barbuda Prime Minister Gaston Browne has said that fugitive diamantaire Mehul Choksi, who has been found in Dominica, will be repatriated to India and Indian authorities are in touch with those in Dominica. Choksi went missing on Sunday from Antigua and a manhunt was launched by the Antigua police. On late Wednesday, Choksi’s lawyer Vijay Aggarwal, confirmed his being found in Dominicia.
Stocks to Watch
BPCL, Burger King India, Cadila, Gati, Jaypee Infratech, and five other stocks that may be in the news today. (Read here)
Cyclone Yaas reaches Jharkhand; heavy rain alert in these three states
The cyclonic storm Yaas, which made landfall yesterday morning, has weakened into deep depression and will weaken further into a depression during next 12 hours, India Meteorological Department (IMD) said in its early morning update posted on Twitter. The cyclone made landfall yesterday morning near Dhamra port in Odisha. Currently, the cyclonic storm lay over south Jharkhand. (Read here)
Petrol, diesel prices hiked after a day’s pause. Check latest rates here
After a day’s hiatus, the prices of petrol and diesel were hiked on Thursday. Petrol rate in Mumbai neared ₹100 a litre after fuel prices were raised again. Petrol prices have been increased by around 23 paise and diesel by around 30 paise, according to state-run fuel retailer Indian Oil Corporation (IOC) data. (Read here)
Markets are likely to consolidate on Thursday while trends in SGX Nifty suggest a marginally higher opening of Indian benchmark indices. On Wednesday the BSE Sensex climbed 379.99 points or 0.75% at 51,017.52.
The Nifty is away from its record high just by a hairline, ending at 15,301.45, up 93 points or 0.61%. It had previously hit its life high at 15,431.75 on 16 February.
SoftBank CEO Son’s pay fell by half last year
SoftBank Group Corp Chief Executive Masayoshi Son’s remuneration for the past business year fell by 52% to 100 million yen ($915,000) including basic pay, a filing from the Japanese conglomerate showed on Thursday.
The disclosure ahead of SoftBank’s annual general meeting on June 23 follows a turbulent year which saw the group pounded by the COVID-19 pandemic before rebounding to record profit on market appetite for its technology investments.
Amazon to buy MGM, studio behind James Bond and ‘Shark Tank’
Online shopping giant Amazon is buying MGM, the movie and TV studio behind James Bond, “Legally Blonde” and “Shark Tank,” with the hopes of filling its video streaming service with more stuff to watch.
Amazon is paying $8.45 billion for MGM, making it the company’s second-largest acquisition after it bought grocer Whole Foods for nearly $14 billion in 2017.
The deal is the latest in the media industry that’s aimed at boosting streaming services to compete against Netflix and Disney . AT&T and Discovery announced last week that they would combine media companies, creating a powerhouse that includes HGTV, CNN, Food Network and HBO.
Asian stocks steady
Asian stocks were steady early Thursday after gains in US shares tied to the economic reopening from the pandemic. The dollar and Treasury yields held an advance. Equities dipped in Japan and South Korea but rose in Australia. Traders will be monitoring China to see if stocks and the currency extend a rally.
S&P 500 futures were little changed as of 9:32 a.m. in Tokyo. The S&P 500 rose 0.2%
Nasdaq 100 contracts were little changed. The Nasdaq 100 rose 0.3%
Japan’s Topix index fell 0.2%
Australia’s S&P/ASX 200 index added 0.2%
South Korea’s Kospi index dipped 0.4%
SGV nifty was down 0.34%
S&P 500 gains
A choppy day of trading on Wall Street ended with stocks closing higher Wednesday, reversing much of the S&P 500’s modest pullback the day before.
The benchmark index ended just under 0.2% higher after wavering between small gains and losses. Retailers and other companies that rely on consumer spending made solid gains. Communication and financial stocks also helped lift the market. The S&P 500’s gains were tempered by declines in health care, technology and other stocks. The S&P 500 rose 7.86 points to 4,195.99. The Dow Jones Industrial Average, which turned 125 years old Wednesday, gained 10.59 points, or less than 0.1%, to 34,323.05. The blue-chip index swung between a gain of 97 points and a 41-point slide. The Nasdaq added 80.82 points, or 0.6%, to 13,738. The Russell 2000 index of smaller companies gained 43.52 points, or 2%, to 2,249.27.
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