Nifty50: 15,208 ▲ +10 (+0.0%)
Sensex: 50,637 ▼ -14 (-0.0%)
After a strong opening, the markets slid downward all day and closed flat. However, the market breadth was positive, with 38 of the Nifty50 stocks posting gains. Among the sectoral indices, Nifty Media (+3.1%) was the top gainer. Meanwhile, banking stocks witnessed selling pressure, with Nifty PSU Bank (-1.3%) and Nifty Bank (-0.8%) falling the most.
| Top gainers | Today's change |
| Asian Paints | ▲ 3.5% |
| Titan | ▲ 3.3% |
| JSW Steel | ▲ 3.0% |
| Top losers | Today's change |
| HDFC Bank | ▼ 1.9% |
| HDFC Life | ▼ 1.3% |
| Axis bank | ▼ 1.1% |
Here are the top stories of the day.
HDFC Bank expects stress in retail lending
- As per India’s largest bank, retail borrowers may delay payments of their loan instalments as they face the impact of the second wave of Covid infections. Further, borrowers who availed of the moratorium are more likely to default.
- Despite the tepid near-term expectations, the bank expects borrowers to cover up for the misses and sees asset quality improving in a couple of quarters. Shares of HDFC Bank have risen about 5% in May so far. In comparison, the Nifty Bank index has risen 5.7% during the same period.
Dalmia Bharat Sugar posts weak Q4
- The North-based sugar company reported a 16% year-on-year drop in its Q4 net profit at ₹52 crore. Profit was impacted by higher tax provision. Meanwhile, revenue from operations declined 11% to ₹488 crore, mainly due to a drop in sugar sales.
- The company is optimistic about sugar prices in the future. It believes that the tight global demand-supply situation and the push for higher ethanol blending in India will keep sugar inventories under control. The stock was down 0.7% today but has gained nearly 130% so far this year.
Panacea Biotec starts Sputnik V production
- Panacea Biotec has begun production of the Russian Sputnik V vaccine, in collaboration with the Russian Direct Investment Fund (RDIF).
- RDIF and Panacea will produce 100 million doses of the vaccine per year. Sputnik V received emergency-use authorisation in India on 12 April 2021 and vaccination with the vaccine started on 14 May 2021. Shares of Panacea Biotec shares hit the 5% upper circuit today.
Everest Organics develops black fungus treatment
- Shares of Telangana-based Everest Organics hit their 20% upper circuit after the company announced that it has developed a treatment for black fungus. The ailment is becoming an increasingly common post-Covid treatment complication.
- The company is purportedly in advanced stages to commercialise the drug containing Posaconazole, the active ingredient used to treat black fungus. Previously Everest has also commercialised Oseltamivir and Remdesivir, both of which are used in the treatment of Covid. The stock has risen 15% so far this month.
Closing bell
Despite a strong start, the drag on the benchmark indices was created by large caps, notably the HDFC twins and Reliance Industries. The Nifty50 is near the upper end of its broader trading range of 14,300–15,300 and is thus facing resistance. Meanwhile, the buzz around a stimulus package for the tourism, aviation and hospitality industries is creating buying interest in shares of companies in these sectors.
Good to know
What is an NPA?
An NPA, or non-performing asset, refers to loans or advances that have been defaulted on, or have not been repaid on time. In India, a loan is considered an NPA if the repayment of the principal or interest is overdue by 90 days. In case a loan is declared an NPA, the lender can force the borrower to liquidate any asset that was pledged as part of the loan agreement.
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