Nifty50: 15,772 ▲+26 (+0.1%)
Sensex: 52,588 ▲+14 (+0.0%)
The market opened on a strong note but declined steadily in the second half of the session, to end the day almost flat. Out of the Nifty50 stocks, 28 closed in the green.
Among the Nifty sectoral indices, Auto (+1.3%) and IT (+0.5%) gained the most, while Realty (-0.6%) and Bank (-0.3%) were the top losers.
| Top gainers | Today's change |
| Maruti Suzuki | ▲ 5.1% |
| UPL | ▲ 3.8% |
| Shree Cement | ▲ 3.3% |
| Top losers | Today's change |
| Asian Paints | ▼ 1.7% |
| Bajaj Finance | ▼ 1.6% |
| Nestle India | ▼ 1.2% |
Here are the top stories of the day.
Cement prices rise in June
- According to reports, pan-India cement prices have risen by 4% month-on-month in June. The price rise has been led by pent-up demand and government infrastructure projects.
- In southern parts of India, the cement prices have gone up by 11% sequentially in June. However, the cement manufacturers are also facing cost pressures due to rising prices of inputs such as pet coke and coal. Shares of UltraTech Cement, Shree Cements and ACC gained in the range of 1–3% today.
Dr Reddy’s launches heart drug in the US
- Pharma major Dr Reddy’s has launched a generic version of the drug Vascepa in the US. The drug is used in treating patients with high triglyceride levels, related to heart disease. The launch came a day after the US Supreme Court rejected a bid by the drug maker Amarin Corp to revive six patents of Vascepa.
- The total sales of Vascepa in the US was $598 million in 2020. US-based Amarin Corp markets the drug in the US. Shares of Dr Reddy’s were up 0.4% today and have gained over 17% so far this fiscal.
MM Forgings posts strong Q4
- The automotive components manufacturer’s consolidated net profit grew 11-fold to ₹34.1 crore in Q4 from ₹3 crore in March 2020. The surge in profits was aided by a 77% rise in net sales to ₹292.5 crore, which provided high operating leverage.
- As per reports, robust demand improvement in India and international markets helped MM Forgings to post a strong set of numbers. It was also able to improve its gross margins despite a sharp rise in prices of all key input commodities. Shares of the company surged by 11% today.
Private hospitals to see higher occupancy
- Private hospitals are expected to witness revenue growth of 15–17% in FY22, as per rating agency Crisil. The growth will be supported by high occupancy due to pandemic-related cases in the first quarter of this fiscal.
- As the second wave recedes, pent-up demand for non-pandemic treatments and elective surgeries are expected to support occupancy levels. The rating agency estimates occupancy levels to be around 65–70% versus 58% in FY21. Meanwhile, shares of major hospitals such as Apollo, Max Healthcare and Narayana Hrudayala were up in the range of 1–5% today.
Closing bell
Despite a strong opening, the markets saw profit-booking and continued to drift lower for most of the day. The downward pull was accelerated by weakness in the index heavyweights such as Reliance Industries and HDFC Bank.
The Nifty50 has turned sideways after seeing a steady uptrend for nearly two months, and to resume the upward trend, it needs to breach its recent high. In the meantime, the bulls and bears could be drawn into a tug-of-war, where the liquidity flow will decide who wins.
Good to know
What is a rights issue?
A rights issue refers to a company’s bid to raise additional money from its existing shareholders rather than going public. In a rights issue, a company invites its shareholders to buy additional shares at a discounted price. The money raised through the rights issue can be used by a company to pare down debt or for capital expenditure.
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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.