Shares extend losses on broader selling

The benchmarks indices hit fresh intraday low in mid-afternoon trade as the coronavirus pandemic continue to spook investors. At 14:33 IST, the barometer index, the S&P BSE Sensex, was down 1072.73 points or 3.60% at 28,742.86. The Nifty 50 index fell 281.40 points or 3.25% at 8,378.85.

The broader market tumbled. The S&P BSE Mid-Cap index was down 2.03% while the S&P BSE Small-Cap index was down 1.76%.

The market breadth was weak. On the BSE, 812 shares rose and 1357 shares fell. A total of 181 shares were unchanged. In Nifty 50 index, 15 stocks advanced while 35 stocks declined.

 

Investors were concerned about the rising number of COVID-19 cases and the economic fallout of the worldwide lockdowns. Meanwhile, the International Monetary Fund (IMF) chief Kristalina Georgieva on Friday (27 March) said the world has clearly entered a recession. The COVID-19 pandemic has driven the global economy into a downturn that will require massive funding to help developing nations, she added.

Buzzing Index:

The Nifty Pharma index rose 1.73% to 6,931.25, extending gains for the fifth day. The index has added 7.76% in five sessions.

Among the index constituents, GlaxoSmithKline Pharmaceuticals (up 6.43%), IPCA Laboratories (up 5.77%), Cipla (up 3.66%), Divi's Laboratories (up 3.37%), Dr Reddy's Laboratories (up 3.27%), Strides Shasun (up 2.45%), Aurobindo Pharma (up 0.76%), Cadila Healthcare (up 0.75%) and Piramal Enterprises (up 0.38%) advanced.

Glenmark Pharmaceuticals (down 1.76%), Wockhardt (down 1.33%), Alkem Laboratories (down 0.68%) declined.

Lupin was up 3.23%. The drug major on Monday (30 March) announced the receipt of the Establishment Inspection Report (EIR) from the US Food and Drug Administration (USFDA) for the company's Inhalation Research Center located at Coral Springs in Florida, USA. The facility was inspected by the USFDA, between 19th and 26th February 2020, on behalf of the U.K. Medicines and Healthcare products Regulatory Agency (MHRA) for Lupin's generic Fostair application to the U.K. MHRA.

Sun Pharmaceutical Industries was down 0.03%. The pharma major on Sunday (29 March 2020) said that the US drug regulator has classified its Halol facility in Gujarat as Official Action Indicated (OAI). It said that an OAI classification implies that the United States Food and Drug Administration (USFDA) may withhold approval of any pending product applications or supplements filed from this facility till the outstanding observations are resolved. There are 19 abbreviated new drug applications (ANDAs) and 2 new drug applications (NDAs), which were filed from the Halol facility, currently awaiting approval for the US market. The company continues to manufacture and distribute existing products for the US market, thereby not likely to have any adverse impact on current business from the facility. US supplies from Halol, as of now, contribute approximately 3-4% of the company's consolidated revenues. Sun Pharma continues to cooperate with the USFDA and will undertake all necessary steps to resolve these issues and to ensure that the regulator is completely satisfied with the company's remedial action.

Stocks in Spotlight:

Indiabulls Ventures was locked in a lower circuit of 5% at Rs 104.60 on BSE, extending its losing streak for fifteenth trading session. The stock has lost 52.48% in last fifteen trading days from its previous closing high of Rs 219.9 hit on 6 March 2020. Meanwhile, the benchmark Nifty 50 index has slumped 24% in the same period.

Manappuram Finance slumped 9.79% to Rs 96.30. The gold financier, in a statement to the exchanges said that all their branches, corporate offices and head office will remain closed for 21 days or until further orders from the government. While employees will continue to work from home, the firm will continue to provide uninterrupted service through Online Gold Loan and customers can re-pledge, make payments without having to walk into the branches, the statement added.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee edged lower to 75.555 compared with its previous closing of 74.8975.

The yield on 10-year benchmark federal paper rose to 6.165% at 14:29 IST compared with 6.144% in the previous trading session.

In the commodities market, Brent crude for May 2020 settlement was down $2.15 to $22.78 a barrel. The contract fell 5.35% or $1.41 to settle at $24.93 a barrel on Friday's trading session.

MCX Gold futures for 3 April 2020 settlement rose 0.76% to Rs 43900.

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