Morning Update for 30 June 2021

Indices at previous closing

Nifty50: 15,748 ▼ -66 (-0.4%)
Sensex: 52,549 ▼ -185 (-0.3%)
Nifty Bank: 35,010 ▼-349 (-0.99%)

In the news

Pharma cos to collaborate for Covid drug

• Five Indian pharma companies—Dr Reddy’s, Sun, Cipla, Emcure and Torrent—will collaborate for the clinical trial of the oral antiviral drug Molnupiravir for the treatment of mild Covid cases. These companies already have the license to manufacture and supply the drug to over 100 other countries including India.
• These companies will jointly sponsor, supervise and monitor the clinical trial of the drug in India. Shares of Dr Reddy’s (+0.7%), Sun Pharma (0.1%) and Cipla (1.7%) closed higher yesterday, whereas Torrent Pharma closed lower (-0.4%).

IRCTC’s Q4 profit declines

• State-owned IRCTC, which enjoys a monopoly in railway ticket bookings, reported a 23% year-on-year drop in its Q4 net profit to ₹103 crore. This was led by a 41% fall in the revenue from operations. 
• While the internet-ticketing segment witnessed a 10% growth, restrictions on serving food during travel severely impacted revenues from catering. Further, performance of its tourism business was hurt due to the pandemic. The management has warned that the pandemic could impact revenue and profitability in FY22. The shares of the company were down 0.3% yesterday.   

Gold prices hit two-month low 

• Gold prices are at their two-month lows as the US dollar rose against other major global currencies. Typically, a firm US dollar makes gold expensive in terms of other currencies, which negatively impacts its demand.  
• Further, the US Fed is keen to control inflation, which decreases gold’s appeal as a hedge against inflation. Gold prices have dropped nearly 5% this month. 

Key data releases this week

Wednesday: Balance of Payments, Current Account
Thursday: Nikkei Markit Manufacturing PMI, Trade Balance

Sectoral indices (29 June)

Global markets (at 8:00 am)

Fact of the day

A Hong Kong real-estate developer has announced a lucky draw for vaccinated citizens. The prize? A luxurious flat worth $1.4 million.

Source: Insider.com   

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