Nifty50: 15,197 ▲ +22 (+0.1%)
Sensex: 50,651 ▲ +111 (+0.2%)
After a gap-up opening, the markets traded in a narrow range and closed nearly flat. The market breadth was evenly split, with 26 of the Nifty50 stocks closing in the green.
Sectorally, the Nifty PSU Bank index (+2.1%) was the strongest gainer, followed by the Nifty Realty (+1.3%). Meanwhile, Nifty Metal (-0.6%) and Nifty FMCG (-0.3%) were the only sectoral indices to close lower.
| Top gainers | Today's change |
| IOC | ▲ 4.8% |
| BPCL | ▲ 2.7% |
| SBI | ▲ 2.4% |
| Top losers | Today's change |
| Shree Cement | ▼ 2.5% |
| JSW Steel | ▼ 2.2% |
| Tata Steel | ▼ 1.9% |
Here are the top stories of the day.
Cipla launches Covid antibody cocktail
- Cipla and Swiss-based pharma company Roche have launched a Covid antibody cocktail in India. A single dose is priced at ₹59,750 and doses for a total of two lakh patients will be made available by mid-June.
- As per Cipla, the cocktail reduces the chances of hospitalisation and fatality by 70% in high-risk patients. The stock rose 0.6% today and has gained about 2% so far this month.
Hero Moto resumes production
- Shares of the world’s largest two-wheeler maker rose 0.7% after it announced that it has resumed production at all its manufacturing plants from today. It had temporarily halted production due to the rising Covid cases.
- The company recently said that it expects a recovery in the two-wheeler industry from Q2FY22 on the expectation of a healthy monsoon and harvest season and a rebound in the GDP. Meanwhile, shares of its competitors—Bajaj Auto (+0.7%) and TVS Motor (-0.4%)—saw a mixed movement today.
Spandana Sphoorty’s profit declines
- Shares of the microfinance lender closed 1.7% weaker after it reported a 40% YoY decline in its Q4 net profit, which stood at just over ₹49 crore. The drop in profit is due to higher provisions and Covid-related write-offs.
- For FY21, the company’s net interest margin declined because of a reduction in the lending rate. Its gross NPA has risen sharply to 3.1% versus 0.5% in FY20. On the upside, the bank’s net interest income rose over 19% YoY.
Aviation sector may see turbulence ahead
- As per aviation research agency CAPA India, the crisis in Indian aviation has reached a point of no return due to the second wave. The agency further states that failure to quickly reduce distress in the sector may result in irreparable damage to jobs and to the sector as a whole.
- Meanwhile, April saw a 27% drop in the number of domestic air passengers compared to March. Interestingly, the shares of Indigo and Spicejet have risen about 2.6% and 17.5% respectively so far in May.
Closing bell
The first day of the week started on a subdued note, with no major cues from the international indices. On the domestic front, there are no important data releases to look forward to this week. However, the monthly derivative expiry on Thursday could create some broader volatility. Meanwhile, the action continues in midcap and smallcap stocks, with their indices rising 0.6–1.0%. Further, in the anticipation of relaxation in lockdowns from next week, sectors like hotels and travel are starting to witness buying.
Good to know
What is gap-up/down opening?
A gap refers to a sharp movement in prices on a chart that occurs with no trading occurring in between. For instance, take the time between the market’s closing and the next day’s opening. A gap-up occurs when the opening price is higher than the previous closing, and vice versa with gap-downs. A full gap-up is when the opening is higher than even the previous day’s high. A gap usually occurs due to the overnight announcement of a substantial piece of news, say a financial result, or strong movement in international markets which may impact a stock, sector or the whole market.
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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.