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Nifty regains 11,350; Yes Bank spurts 27%

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Capital Market
Last Updated : Mar 05 2020 | 12:04 PM IST
Equity indices hit the day's high as fresh buying support emerged in the mid morning trade. Sentiment got a boost after the media reported that the government may ask State Bank of India (SBI) to lead a consortium that will buy stake in Yes Bank. The Nifty regained the 11,350 level. Pharma stocks continued to be in favour.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 412.89 points or 1.07% at 38,882.37. The Nifty 50 index surged 112.15 points or 1% at 11,363.15.

The broader market underperformed the benchmarks. The S&P BSE Mid-Cap index was up 0.69% while the S&P BSE Small-Cap index was up 0.48%.

The market breadth was positive. On the BSE, 1137 shares rose and 829 shares fell. A total of 135 shares were unchanged. In Nifty 50 index, the market breadth was positive with 44 stocks advancing and 6 stocks declining.

Buzzing Index:

The Nifty Pharma index was up 1.37% to 8197.50, extending its gains to third consecutive session. The pharmaceutical index has surged 8.79% in three trading days from its previous closing low of 7535.10 posted on 2 March 2020.

Cadila Healthcare (up 5.31%),Divi's Laboratories (up 2.04%), Lupin (up 1.78%), Wockhardt (up 1.61%), Alkem Laboratories (up 1.5%), Dr Reddy's Laboratories (up 1.42%), GlaxoSmithKline Pharmaceuticals (up 0.95%), Aurobindo Pharma (up 0.93%), Sun Pharmaceuticals (up 0.76%), Cipla (up 0.3%) and Glenmark Pharmaceuticals (up 0.19%) were top gainers in pharmaceutical space.

Alembic Pharmaceuticals in a regulatory filing today announced that it has received a final approval from the US Food & Drug Administration (USFDA) for its Doxycycline Hyclate Tablets USP, 20 mg. Doxycycline Hyclate Tablets are indicated for use as an adjunct to scaling and root planing and to reduce pocket depth in patients with adult periodontitis. Shares of Alembic Pharmaceuticals were trading 0.18% lower at Rs 649.

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Stocks in Spotlight:

Yes Bank surged 27.47% to Rs 37.35 after the media reported that the government may ask State Bank of India (SBI) to lead a consortium that will buy stake in the private lender. SBI has also been authorised to pick other members of the consortium, added reports. Yes Bank delayed its December quarter earnings to on or before 14 March 2020.

Meanwhile, shares of SBI were down 0.53% to Rs 283.80.

BASF India on Wednesday (4 March) said it received further demand notices from the Commercial Tax Department, Karnataka. In October last year, BASF India had received demand notices from Commercial Tax Department, Karnataka for the periods 2006-2010, 2010-11 (2 months), 2014-15 by treating the stock transfers of the company's Mangalore plant as interstate sales to dealers and its subsequent stay granted by the Karnataka Appellate Tribunal. The company has now received demand notices for the further periods i.e. 2010-13 from the Commercial Tax Department, Karnataka aggregating to Rs 211.25 crore (including interest & penalty) by treating the stock transfers of its Mangalore plant as interstate sales to dealers. The company has also received a Notice for Rs 46.39 crore (including interest & penalty) for the period 2015-16 from Commercial Tax Department, Karnataka. Shares of BASF India were up 5.24% to Rs 1208.

Global Markets:

Asian markets were trading higher on Thursday after an emergency US spending bill to combat the impact of the coronavirus added to signs of support from policy makers around the world.

Meanwhile, the International Monetary Fund (IMF) announced a $50 billion aid package on Wednesday to combat the impact of the coronavirus. Most of the money will be interest-free, and countries do not need to have a pre-existing program with the IMF to participate.

In US, stocks soared on Wednesday, as investors warmed to the Federal Reserve's surprise interest rate cut and support from other central banks, as well as former Vice President Joe Biden emerging as the frontrunner of the Democratic Party's presidential race.

The Dow Jones Industrial Average skyrocketed 1,173.45 points higher to close at 27,090.86 its second-highest point gain ever, and the second time in three days that the 30-stock average swung 1,000 points or higher.

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First Published: Mar 05 2020 | 11:32 AM IST

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