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Nifty reclaims 9200 mark; breadth weak

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Capital Market
Last Updated : May 12 2020 | 2:51 PM IST
Key barometers sharply pared losses in mid-afternoon trade. The Nifty reclaimed 9200 mark. At 14:31 IST, the barometer index, the S&P BSE Sensex, was down 147.28 points or 0.47% at 31,413.94. The Nifty 50 index shed 27.8 points or 0.3% at 9,211.40.

In the broader market, the S&P BSE Mid-Cap index and the S&P BSE Small-Cap index were down 0.86%.

The market breadth was weak. On the BSE, 736 shares rose and 1454 shares fell. A total of 161 shares were unchanged. In the Nifty 50 index, the breadth was positive with 30 shares advancing and 20 shares declining.

The undertone of the market was still weak as investors were concerned about a second wave of coronavirus infections after the China's Wuhan city where the pandemic originated reported its first new cases since its lockdown was lifted. Wuhan reported five new cases on Monday.

Rapidly rising Covid-19 cases in India also weighed on the market sentiment. Total COVID-19 confirmed cases worldwide stood at 41,77,584 far with 2,86,330 deaths. India reported 46,008 active cases of COVID-19 infection and 2,293 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Prime Minister's address:

Prime Minister Narendra Modi will address the nation at 8 pm today evening. At video conference with chief ministers (CMs) held yesterday, PM Modi reportedly promised resumption of more economic activities in the weeks to come and asked states to take the lead in deciding the contours of the next phase of lockdown and share their strategies with him by May 15.

As per reports, the centre has indicated that an economic package for the states was on the anvil, and the PM expressed the need to strengthen health infrastructure with onset of monsoon round the corner. PM also acknowledged that the next challenge was to prevent the virus from 'spreading to rural areas'. The fear of spread with the return of Indians stranded abroad was also flagged, media reports said.

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A government statement reportedly issued after the meeting acknowledged the CMs suggested support to MSMEs, infrastructure projects like power, easing of interest rates on loans, and assured market access to agricultural produce.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 6.165% as compared with previous closing of 6.167% in the previous trading session.

In the foreign exchange market, the partially convertible rupee edged higher to 75.51 compared with its previous closing of 75.73.

In the commodities market, Brent crude for July 2020 settlement was up 37 cents to $30 a barrel. The contract fell 4.33% to settle at $ 29.63 a barrel in the previous trading session

MCX Gold futures for 5 June 2020 settlement rose 0.17% to Rs 45,859.

Stocks in Spotlight:

Ind-Swift Laboratories hit an upper circuit of 5% at Rs 21.65 after the company said its manufacturing facility at Derabassi in Punjab received establishment inspection report (EIR) from the US drug regulator. The EIR has been issued without any Form 483 observations.

InterGlobe Aviation jumped 4.11%. The media reported that Rahul Bhatia, IndiGo's biggest shareholder, is eyeing Australia's second-largest airline Virgin Australia Holdings, which went bankrupt last month amid the coronavirus pandemic. Virgin Australia has attracted at least 20 potential buyers as its administrator, Deloitte, races to sell the airline within two months of its collapse. Deloitte is seeking indicative bids by Friday and binding offers in June, targeting a deal by the end of that month. According to an Australian business and finance newspaper, the Indian proposal aims to relaunch the airline in its original form as a low-cost carrier to return it to profit.

Seamec was locked in an upper circuit of 5% at Rs 314.95 on NSE. HAL Offshore placed a Notification of Award (NOA) for charter hire of SEAMEC III for 2 years. The vessel is likely to be deployed around end July or early August after completing the dry docking and modifications required to meet the contractual obligation. The aggregate value of contract is about $22,986,400 inclusive of GST.

Biocon fell 2.02%. Biocon Biologics India, a subsidiary of Biocon, has received the certificate of Good Manufacturing Practice (GMP) compliance from EMA represented by the competent authority of Germany for its biologics drug substance (DS), facilities at Bengaluru. These facilities are used for manufacturing drug substance of Pegfilgrastim and Recombinant Human Insulin and manufacturing related activities for Insulin Glargine and Insulin Aspart and were inspected by the regulatory agency between January 20 and 23, 2020. This certification will enable the firm to continue addressing the growing needs of patients in the EU markets and enhance access to the firm's high quality biosimilars.

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First Published: May 12 2020 | 2:31 PM IST

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