Shares across Asia jumped following developments overnight regarding the use of Gilead Sciences' antiviral drug Remdesivir as a potential new treatment for Covid-19 patients. Sentiment also improved after China said manufacturing activity in the country expanded slightly in April.
In the broader market, the S&P BSE Mid-Cap index was up 2.04% while the S&P BSE Small-Cap index rose 1.93%. Both these indices trailed the Sensex.
There were more buyers than sellers. On the BSE, 1443 shares rose and 608 shares fell. A total of 121 shares were unchanged. In Nifty 50 index, 47 stocks advanced while 3 stocks declined.
Buzzing Index:
The Nifty Metal index jumped 4.87% to 1,807.75, rising for second day in a row. The index jumped 8.79% in two trading sessions.
Metal stocks were in demand after China's manufacturing activity expanded slightly in April. China is the world's largest producer and consumer of industrial metals.
Vedanta (up 7.08%), Hindalco Industries (up 7.05%), Tata Steel (up 5.84%), Steel Authority of India (up 4.64%), JSW Steel (up 4.45%), Jindal Steel & Power (up 4.23%), Coal India (up 3.5%), NMDC (up 3.18%), National Aluminium Company (up 3.07%) and Hindustan Zinc (up 2.57%) were top gainers in metal segment.
Stocks in Spotlight:
Glenmark Pharmaceuticals jumped 4.58% after it received approval from the DCGI (Drug Controller General of India), the regulator in India, to conduct clinical trials on Favipiravir Antiviral tablets on COVID-19 patients. The product is a generic version of Avigan of Fujifilm Toyama Chemical, Japan, a subsidiary of Fujifilm Corporation.
Shares of AU Small Finance Bank were locked in an upper circuit of 5% at Rs 564.35. The bank's board will meet on 2 May 2020 to consider raising funds by issuing equity shares through private placement, qualified institutions placement (QIP) or preferential allotment or through a combination thereof or any other alternative mode, as may be considered appropriate. The announcement was made after market hours yesterday, 29 April 2020.
Mahindra & Mahindra Financial Services surged 4.72% to Rs 164.25 after the company said it completed the proceedings for divestment of 49% stake in its asset management subsidiary to Manulife. Manulife has invested $35 million (about Rs 265 crore) in the 51:49 joint venture, which aims to expand its fund offerings, drive fund penetration and achieve long term wealth creation in India. The joint venture brings together Mahindra Finance's domestic market strength and track record of building successful businesses and partnerships, with Manulife's global wealth and asset management capabilities and richness of experience in servicing the needs of consumers in Asia and around the world.
Global Markets:
Asian equity markets were trading higher on Thursday following positive developments overnight on a potential new treatment for Covid-19. Markets in Hong Kong and South Korea are closed on Thursday.
Gilead Sciences said Wednesday preliminary results of a coronavirus drug trial showed at least 50% of patients treated with a five-day dosage of Remdesivir improved and more than half were discharged from the hospital within two weeks.
On the economic data front, China said manufacturing activity in the country expanded slightly in April. The official manufacturing Purchasing Managers' Index for April came in at 50.8, as compared to 52 in March. PMI readings above 50 indicate expansion, while those below that level signal contraction.
In US, markets surged on Wednesday as hopes for an effective COVID-19 treatment prompted a broad rally and helped investors shrug off words of warning from US Federal Reserve Chair Jerome Powell.
Meanwhile, Federal Reserve policymakers on Wednesday left interest rates near zero and repeated a vow to do what it takes to shore up the economy, saying the ongoing coronavirus pandemic will weigh heavily on the near-term outlook and poses considerable risks for the medium term.
On the economic data front, the Commerce Department says the gross domestic product, the total output of goods and services, posted a quarterly drop for the first time in six years. The US economy shrank at a 4.8% annual rate last quarter as the coronavirus pandemic shut down much of the country.
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