Market turns negative; pharma snaps winning run

Key equity indices reversed gains and hit fresh intraday low in mid afternoon trade. Pharma stocks witnessed profit booking. The Nifty briefly slipped below the crucial 9000 mark. At 13:25 IST, the barometer index, the S&P BSE Sensex, was fell 72.29 points or 0.24% at 30,600.89. The Nifty 50 index fell 33.8 points or 0.37% at 9,005.45.

The broader market traded with decent gains. The S&P BSE Mid-Cap index rose 0.93% while the S&P BSE Small-Cap index gained 0.25%.

The market breadth was almost even. On the BSE, 1112 shares rose and 1102 shares fell. A total of 193 shares were unchanged. In the Nifty 50 index, 26 shares advanced while 24 stocks declined.

Buzzing Index:

The Nifty Pharma index was down 0.76% to 9,527.75, snapping its three days winning run. The index gained 5.68% in the past three trading sessions.

Piramal Enterprises (down 3.18%), Cadila Healthcare (down 2.8%), Cipla (down 1.82%), Aurobindo Pharma (down 1.73%), Sun Pharmaceutical Inds (down 1.36%), Dr. Reddy's Laboratories (down 0.54%) and Divi's Laboratories (down 0.2%) were top losers in Nifty Pharma index.

Shares of Glenmark Pharmaceuticals were down 1.11% at Rs 347.90. The drug maker announced a new randomized, open-label study to test the combined efficacy of two antiviral drugs Favipiravir and Umifenovir as a potential COVID-19 treatment strategy.

Indoco Remedies was down 0.41%. The drug maker announced receiving approval for its abbreviated new drug application (ANDA) for Succinylcholine Chloride injection USP 200 mg/ 10 ml (20 mg/ml) multi‐dose vial, therapeutically equivalent to the reference listed drug (RLD) Quelicin Injection of Hospira, Inc. Succinylcholine Chloride injection is indicated as an adjunct to general anesthesia, to facilitate tracheal intubation, and to provide skeletal muscle relaxation during surgery or mechanical ventilation. The product is being used for some patients infected with Corona virus (COVID‐19).

Stocks in Spotlight:

Shares of ITC were up 1.82% at Rs 189.75. The company on Saturday, 23 May 2020, entered into a share purchase agreement (SPA) to acquire 100% stake of Sunrise Foods (SFPL), which is engaged in the business of spices under the trademark 'Sunrise'. The transaction is subject to fulfillment of various terms and conditions as specified in the Share Purchase Agreement (SPA). The proposed acquisition is aligned with ITC's strategy to rapidly scale up its FMCG businesses in a profitable manner, leveraging its institutional strengths viz. deep consumer insight, a deep and wide distribution network, agri-commodity sourcing expertise, cuisine knowledge, strong rural linkages and packaging know-how.

Maruti Suzuki India (MSIL) gained 1.31%. The company has received intimation from Suzuki Motor Gujarat that they would re-start production of vehicles from 25 May 2020, strictly in accordance with the Government regulations and guidelines and by observing the company's own concern for the highest standards of safety. SMG manufactures cars on a contract basis for MSIL.

Shares of Eicher Motors were up 4.23% at Rs 14507 on BSE. The auto maker on Monday (25 May 2020) said that its board will consider sub-division of the equity shares of face value of Rs 10 each on 12 June 2020. The board will also consider Q4 March 2020 results on the same day.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 5.975% compared with previous closing of 5.961% in the previous trading session.

In the foreign exchange market, the partially convertible rupee edged higher to 75.66 compared with its previous closing of 75.95.

In the commodities market, Brent crude for July 2020 settlement was up 91 cents to $36.04 a barrel. The contract rose 2.58% to settle at $35.13 a barrel in the previous trading session.

MCX Gold futures for 5 June 2020 settlement fell 0.28% to Rs 46,840.

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