The domestic equity barometers ended flat with some positive bias on Thursday. The Nifty closed below the 16,650 mark. The trading was volatile on account of monthly derivatives expiry on the NSE. Metal stocks corrected after rising in the past two sessions. FMCG shares were in demand.
As per provisional closing data, the barometer index, the S&P BSE Sensex, rose 4.89 points or 0.01% to 55,949.10. The Nifty 50 index added 2.25 points or 0.01% to 16,636.90.
In the broader market, the S&P BSE Mid-Cap index advanced 0.30% while the S&P BSE Small-Cap index gained 0.31%.
The market breadth was positive. On the BSE, 1738 shares rose and 1447 shares fell. A total of 137 shares were unchanged.
Economy:
Global rating agency, Moody's Investors Service on August 26 said the second wave of Covid will lead to new problem loans in the retail and SME segments, but a severe asset quality decline is unlikely
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The improved profitability, capital and loss buffers of banks will help them absorb anticipated loan losses and maintain credit strength, Moody's said in a release.
"A severe deterioration of banks asset quality is unlikely, despite an expected rise in new loan impairments particularly among individuals and small businesses that were hit hardest by the virus outbreak," said Alka Anbarasu, a Moody's Vice President and Senior Credit Officer.
"This is because government initiatives like the emergency credit linked guarantee scheme (ECLGS) have been effective in providing immediate liquidity for businesses," Anbarasu said.
In addition, accommodative interest rates and loan restructuring schemes will continue to mitigate asset risks, such that the coronavirus resurgence will delay but not derail the improvements in banks' balance sheets that had begun before the pandemic, Moody's said.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 213,866,744 with 4,463,127 global deaths.
India reported 333,725 active cases of COVID-19 infection and 436,365 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
The country's COVID-19 vaccination coverage has crossed a significant milestone of 60 Crore doses. Union Health Ministry said more than 46 crore vaccine doses have been administered as first dose and over 13 crore vaccine doses given as second doses so far.
Buzzing Index:
The Nifty Metal index fell 1.15% to 5,411.15 amid some bit of profit booking. The index advanced 3.45% in the past two sessions.
NMDC (down 4.64%), SAIL (down 3.23%), Welspun Corp (down 2.74%), National Aluminum Co. (down 2.59%), JSW Steel (down 1.62%), MOIL (down 1.50%), Hindalco Industries (down 1.37%), Jindal Steel & Power (down 1.12%), Coal India (down 1.01%), Tata Steel (down 0.99%) and Vedanta (down 0.86%) declined.
Meanwhile, APL Apollo Tubes (up 4.67%), Adani Enterprises (up 0.19%) and Ratnamani Metals Tubes (up 0.18%) bucked the trend.
Stocks in Spotlight:
Reliance Industries (RIL) rose 1.31% to Rs 2,231.50, extending gains for fourth day. The stock has added 2.88% in four sessions.
Bharti Airtel tumbled 4.28% to Rs 586.25. The teleco said that a meeting of the board of directors is scheduled for Sunday, 29 August 2021, to consider fund raising plan through equity or equity linked or debt instruments or any combination there-of.
Procter & Gamble Hygiene & Health Care (PGHH) rose 1.80% to Rs 5471. The company posted a 29.2% fall in net profit to Rs 48.98 crore on 24% rise in net sales to Rs 786.59 crore in Q4 June 2021 over Q4 June 2020.
Cipla shed 0.22% to Rs 910.95. The drug major said that a joint venture company has been incorporated with Kemwell Biopharma for entering into the respiratory biosimilars space. Under the terms of the agreement, the joint venture will leverage Cipla and Kemwell's complementary strengths for end-to-end product development, clinical development, regulatory filings, manufacturing and commercialisation of biopharmceutical products.
Wockhardt slumped 4.71% to Rs 416.05. The company's subsidiary Wockhardt Bio AG has partnered with China's Jiangxi Jemincare Group Company (Jemincare) for supplying Wockhardt's novel patented antibiotic Nafithromycin in People's Republic of China, Hong Kong, Macau and Taiwan. The antibiotic Nafithromycin is used for the treatment of community-acquired bacterial pneumonia and other respiratory tract infections.
Under the terms of the definitive agreement, Jemincare will be responsible for exclusive development and commercialization of the Nafithromycin in the select markets. Wockhardt will receive an upfront payment and will be eligible for regulatory-linked milestone payments. Further, Wockhardt would supply the product to Jemincare and will receive royalties on net sales.
Thermax rose 0.65% to Rs 1369.75. The company said that its wholly owned subsidiary, Thermax Babcock and Wilcox Energy Solutions (TBWES), has concluded a Rs 293 crore order for a boiler package comprising 3 x oil & gas fired boilers on EPC basis for a refinery and petrochemical complex in western India.
Marksans Pharma advanced 2.22% to Rs 71.40. The company said that the USFDA has granted approval for an abbreviated new drug application (ANDA) for Acetaminophen Extended-Release Tablets USP, 650 mg (OTC). Acetaminophen is a pain reliever and a fever reducer.
Affle (India) hit an upper circuit of 5% at Rs 4,180.45 after the company's board approved a stock split of company's one equity share of face value of Rs 10 into five equity shares of face value of Rs 2 each. The record date for the stock split is 8 October 2021.
Bank of India rose 1.08% to Rs 65.60. The bank said its board has approved the opening of qualified institutional placement (QIP) on 25 August 2021. The floor price of Rs 66.19 per equity share is at a premium of 1.99% as compared with yesterday's closing price of Rs 64.90 per share.
The bank said that its capital issue committee is scheduled to be held 30 August 2021 to consider and determine the issue price for the equity shares to be allotted to qualified institutional buyers, pursuant to the Issue. The state-owned bank is raising funds to fund business growth and meet regulatory compliance.
Global Markets:
Shares in Europe edged lower on Thursday after rise in COVID-19 cases and worries about monetary policy outlook dented the sentiment.
Most Asian stocks declined on Thursday after South Korea's central bank hiked interest rates. South Korea's central bank raised its policy rate on Thursday, becoming the first major Asian economy to do so in the pandemic amid concerns record-low monetary settings are overheating demand. The Bank of Korea's monetary policy board raised the benchmark interest rate by 25 basis points to 0.75%.
Meanwhile, Japan saw the prices companies charge each other for services rise 1.1% in July from a year earlier, marking the fifth straight month of increase, Bank of Japan data showed on Thursday. The increase in the services producer price index was smaller than a revised 1.3% gain marked in June, the data showed.
US stocks advanced on Wednesday, with chipmakers and financials helping to push the S&P 500 and the Nasdaq to record closing highs as investors look to the upcoming Jackson Hole Symposium.
The highly anticipated Jackson Hole symposium kicks off Thursday, and central bankers may provide updates on their plan around tapering monetary stimulus. The Federal Reserve has been purchasing at least $120 billion of bonds per month to curb longer-term interest rates and jumpstart economic growth as the pandemic wreaked havoc on the economy. Chairman Jerome Powell is slated to make remarks on Friday.
Johnson & Johnson said on Wednesday that its Covid Vaccine booster shot showed promising results in early stage clinical trials, significantly increasing virus-fighting antibodies.
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