Markets scale new heights

Nifty50: 16,705 ▲ 68 (+0.4%)
Sensex: 56,124 ▲ 175 (+0.3%)

The markets opened weak. However, buying was witnessed throughout the day, with the benchmark indices closing at new lifetime highs. The Sensex closed beyond the 56,000-mark for the first time. The fact that 39 of the Nifty50 stocks posted gains shows that buying interest was spread across the board.

All the Nifty sectoral indices closed in the green, with Metal (+1.6%) and Pharma (+1.3%) leading the pack.

Here are the top stories of the day.

Aurobindo Pharma gets nod for cancer drug

The Hyderabad-based drug maker has received USFDA approval for its Cyclophosphamide injection, used in the treatment of various types of cancers. The injections will be launched in the USA soon, and will be manufactured by Eugia Pharma Specialities, a subsidiary of Aurobindo Pharma.  

The company states that the drug has an addressable market worth $170 million, as of June 2021. The pharma major stock gained 1.6% today. However, it has declined by over 33% from its life-time peak, hit in May this year.  

Two IPOs open next week

September opens with two IPOs, namely Ami Organics and Vijay Diagnostic. Gujarat-based Ami Organics is a specialty chemicals manufacturer that aims to raise ₹569 crore from its public issue. The offer comprises a fresh issue of ₹200 crore, while the rest is an offer for sale. Its price band is set at ₹603–610 per share. 

Meanwhile, Hyderabad-based Vijay Diagnostic plans to raise ₹1,895 crore through its IPO, which will be entirely an offer for sale. Its price band is set at ₹522–531. Both the public issues will be open for subscription from 1–3 September, and you can apply to them on Upstox here.  

Crude oil posts strong surge

Crude oil prices have been on the rise this week, as oil producers in the Gulf of Mexico have been shutting down production ahead of the tropical storm Ida. The storm is expected to make landfall in the next few days. 

Crude oil prices have seen sharp volatility recently. Last week, prices fell by 9% and this week they saw a strong recovery. 

Closing bell

The markets closed the week with a bang and ended at lifetime highs. The markets received support from heavy-weight sectors, namely IT, banks and metals, whereas only media and auto sectors were subdued. Interestingly, the Indian markets brushed aside weak cues from the US markets. 

The US markets saw some profit booking yesterday, ahead of the Fed Chairman’s speech later today. The markets expect cues relating to growth outlook and the stimulus timeline. Meanwhile, India’s Q1 GDP and PMI data will be released next week and could provide cues for movement in the market. 

Good to know

What are crude stockpiles?

Crude stockpiles are inventories or reserves of unrefined petroleum. These are measured in terms of barrels. Governments usually stock up crude oil to tide over the volatility of this commodity’s price.  Crude stockpile levels are keenly monitored by investors and policymakers as they can affect the price of oil. For instance, if the stockpiles increase above the expected level, the price of oil may drop as it signals a glut. In the US, which is the largest consumer of oil, these numbers are released on a weekly basis.

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Investment in securities markets is subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.