Markets catch virus

Nifty50: 17,026▼-509.8 (-2.9%)
Sensex: 57,107▼-1,687.9 (-2.8%)

• The market witnessed heavy selling pressure as a new virus variant surfaces 
• Of the Nifty50 pack, 46 stocks declined, indicating broad-based selling
• Among the Nifty sectoral indices, only Pharma (+1.7%) was top gainer.
• Whereas, Realty (-6.2%) and Metal (-5.3%) were top losers.

For more updates on F&O, click here.

Here are the top stories of the day.

Cadila jumps on vaccine buzz

Gujarat based pharma company Cadila Healthcare, reportedly, plans to launch India’s fourth covid vaccine ZyCoV-D in December. Earlier this month, it had received an order to supply 1 crore doses to the government. The vaccine which has been priced at Rs 265 per dose is also approved for use in children aged 12 years and above. 

The development comes at the time when a new virus strain has been detected in South Africa and new cases are on rise in Europe especially in Germany. Meanwhile, Cadila is also reportedly partinering with Korea-based Enzychem Lifesciences to commercialise the vaccine in South Korea in 2022. The shares of Cadila closed 2.6% higher today.

Realty stocks under pressure

The shares of major realtors were down today due the rising demand concerns owing to the buzz around the new virus variant and also due to street expectations of interest rate hike in 2022. The Nifty Realty Index has corrected more than 6% this week. 

Despite the correction, Realty index has outperformed the broader market by surging 57% so far in 2021. Economic recovery, low interest rates, stamp duty cuts, and need for larger homes due to work-from-home were some of the factors which fueled the rally.

Tarsons’ strong debut in weak market

The Kolkata-based labware equipment maker listed on NSE at a premium of 3% against the issue price of ₹662 per share. After the listing, shares of the company continued their upward march and ended 23% higher compared to the issue price. Investors had shown strong interest in this public issue with the IPO being oversubscribed around 77 times last week. 

Meanwhile, this year’s IPO party continues. India’s largest private health insurer Star Health will launch its ₹7,249 crore IPO on 30 November 2021. Following that, mining equipment component maker Tega Industries will launch its ₹619 crore public issue on 1 December 2021. You can apply for IPOs on Upstox. 

Closing bell

The concerns over the new virus variant gripped the global markets. Major Asian and European equity markets were down 2% to 3% today. The virus scare has also created future demand concerns for major commodities such as copper and crude oil, whose prices fell 3% and 6%, respectively. These issues and the overhang of interest rate hikes in the near future is making traders seek respite in bullion. Gold prices jumped nearly 1.5%, making it the one of best performing asset classes for the day. Meanwhile, a 25% surge in the India VIX, indicates that traders must brace for a rise in volatility in the coming weeks.

Good to know

What is operating leverage?

The operating leverage reveals how much a company’s operating income can rise, if it increases its sales or revenue. For having higher operating leverage, a company must have high gross margins and low variable costs. It shows at what price the company’s products or services can be sold to cover all operating expenses and mint profit. 

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