Mumbai: Financials and Bajaj group stocks drove the Sensex higher on Monday, as markets shrugged off rising coronavirus infections and weak cues from global peers to focus on life after Covid-19. Meanwhile, ongoing discussions between India-China will likely influence the market mood going ahead.

“Sentiments in the markets remain upbeat with Chief Economic Advisor’s statement that the demand in the economy will increase when the uncertainty regarding health in the wake of COVID-19 outbreak ends,” said Narendra Solanki, head- equity research (fundamental), Anand Rathi Shares & Stock Brokers.

“Also the liquidity situation in June remained positive as foreign portfolio investors (FPI) have infused a net Rs 17,985 crore into the Indian capital markets so far, further strengthening the markets.” he added.

Demand in the economy will increase when the uncertainty regarding health in the wake of Covid-19 outbreak ends, Chief Economic Advisor Krishnamurthy V Subramanian said after market hours on Friday. Speaking at a webinar session organised by Bharat Chamber of Commerce, Subramanian said that discretionary spending in the economy has not risen due to uncertainty regarding health in the wake of the coronavirus outbreak, PTI reported.

As many as 21 Sensex stocks closed higher. Financials contributed the most to Sensex’s 180-point gain. Peer Nifty added 67 points to close at 10,311.

Agencies

BSE snip 22AA

Sensex winners & losers (Source: bseindia.in)

Private lender Kotak Mahindra Bank rose 4.14 per cent, while peers Axis Bank and ICICI Bank climbed 3.13 per cent and 1.07 per cent.

Bajaj Group trios: Bajaj Finance, Bajaj Auto and Bajaj Finserv climbed 5.34 per cent, 6.89 per cent and 4.85 per cent, respetively and were among the top gainers in the Sensex pack.

The bulls were in control of the market as gainers were more than double the number of losers on the BSE.

Broader market outperformed the frontline indices, with BSE midcap and smallcap indices rising 2.02 per cent and 1.36 per cent, respectively.

All sectoral indices, except BSE IT, closed in the green. BSE Power index and BSE Metals index were the top sectoral gainers as they advanced 2.77 per cent and 2.69 per cent, respectively. BSE Healthcare index followed next with a 2.26 per cent gain as investors cheered the regulatory approvals to domestic pharma companies to manufacture covid-19 treatment drugs.

BSE IT index, on the other hand, shed 0.35 per cent.

Indiabulls Housing Finance shares have surged around 60 per cent in the last two sessions following a number of bulk deals, including one in which Morgan Stanley acquired a stake in the housing finance company. The stock ended 18.49 per cent higher on Monday.

A string of regulatory approvals for Covid-19 drugs for domestic pharmaceutical companies also kept the sentiment upbeat.

Glenmark Pharmaceuticals rallied 27.06 per cent after the drug maker said it has launched antiviral drug Favipiravir, under the brand name FabiFlu, for the treatment of patients with mild to moderate Covid-19. The stock touched a 52-week high of Rs 572.70 earlier in the day.

Peer Cipla also rose 2.94 per cent after the drug maker announced the launch of its generic version of remdesivir. The drug remdesivir has been authorised for emergency use in treatment of Covid 19 patients by the US drug regulator USFDA.

Index heavyweight Reliance Industries closed 0.70 per cent lower after scaling new record high of Rs 1,804.10 in intraday session as traders locked in gains after the recent rally.

Markets at a glance:

  • Sensex up 0.52%, or 180 points to close at 34,911
  • Nifty up 0.65% or 67 points to close at 10,311
  • Top Sensex gainers: Bajaj Auto up 6.89%, Bajaj Fin 5.34%, Bajaj Finserv 4.85%
  • Top Sensex losers: HDFC down 1.13%, ONGC 0.99%, TCS 0.92%
  • Bulls in favour; advance-decline ratio at 2.2:2
  • Broader markets outperform; BSE Midcap up 2.02%, SmallCap 1.36%
  • BSE Power top sectoral gainer, up 2.77%; Adani Green up 4.99%, Adani Transmission 4.86%
  • BSE Metal index up 2.69%; NMDC up 6.49%, Hindustan Zinc 5.73%
  • BSE IT index sheds 0.35%; Ramco Systems down 5%, Zensar Tech 3.88%
  • IB Housing Finance up 18.49%; Morgan Stanley picks stake
  • Glenmark Pharma jumps 27.06% on Favipiravir drug launch
  • Cipla rises 2.94% on launch of generic version of remdesivir
  • RIL drops 0.70% after hitting record high in early trade

Who moved my market:

Asian stocks held flat on Monday, trying to shake off worries that rising coronavirus cases in the United States could scupper a quick economic rebound from the massive downturn triggered by the pandemic, Reuters reported. European shares slipped as signs of a resurgence in coronavirus cases in Germany and elsewhere unnerved investors who were hoping for a swift economic recovery from the crisis, a Reuters report said. MSCI’s broadest index of Asia-Pacific shares outside Japan was almost flat, while the pan-European STOXX 600 index was down 0.3 per cent.

  • String of approvals for Covid drugs

Glenmark Pharmaceuticals and Cipla launched drugs for the treatment of Covid-19 patients, sending the healthcare pack higher.
Indian and Chinese military commanders held a second round of talks to ease tensions at their contested border in Ladakh on Monday, as the public mood hardened in India for a military and economic riposte to China following the worst clash in over five decades, Reuters reported.

  • Continued surge in coronavirus cases

India recorded the biggest single-day jump of 445 deaths amid renewed concerns over the rapid rise in new infections in the country. The spike in cases has taken the country’s tally to 4,25,282 while the death count rose to 13,699.

What to watch out for

  • The continued rapid in new coronavirus cases and casualties are a major cause of concern.
  • The direction of global markets will be closely followed watched as the domestic market tends to follow suit.
  • Political and military developments between India and China will be closely watched.
  • Expiry of monthly derivatives contracts on Thursday.







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