Equities witness sharp recovery, extends decent gains

8 Feb 2022 , 12:39 PM

The benchmark indices experienced a quick trend reversal, to extend modest gains during early afternoon trade. The market was boosted by pharma, healthcare and PSU bank scrips. The Nifty hovered above 17,200 level.

At 12:30 IST, the barometer index, the S&P BSE Sensex, rose 98.20 points or 0.17% at 57,719.39. The Nifty 50 index gained 24.55 points or 0.14% at 17,238.15.

In the broader market, the S&P BSE Mid-Cap index lost 0.21% while the S&P BSE Small-Cap index fell 0.99%.

The market breadth was weak. On the BSE, 1,016 shares rose and 2,208 shares fell. A total of 98 shares were unchanged.

COVID-19 Update:

India added 67,597 new cases in the last 24 hours. The daily positivity rate stood at 5.02%. The countrys active caseload currently was at 9,94,891.

Economy:

The Reserve Bank of Indias (RBI) Monetary Policy Committee (MPC) will meet on 8-10 February 2022. The RBIs MPC will announce its interest rate decision on 10 February 2022.

Derivatives:

The NSEs India VIX, a gauge of markets expectation of volatility over the near term, fell 1.95% to 20.0375. The Nifty 24 February 2022 futures were trading at 17,206.45, at a discount of 31.7 points as compared with the spot at 17,238.15.

The Nifty option chain for 24 February 2022 expiry showed maximum Call OI of 26.1 lakh contracts at the 18,000 strike price. Maximum Put OI of 38 lakh contracts was seen at 16,500 strike price.

Buzzing Index:

The Nifty Pharma index rose 0.40% to 13,434.90. The index lost 1.91% in the past three sessions.

Pfizer (up 3.71%), Divis Laboratories (up 2.06%), Biocon (up 1.85%), Natco Pharma (up 1.24%) and Strides Pharma Science (up 1.23%) were the top gainers in the Pharma segment.

Glaxosmithkline Pharmaceuticals shed 2.65%. The companys consolidated net profit slipped 3.9% to Rs 150.35 crore on a 3% increase in net sales to Rs 815.92 crore in Q3 December 2021 over Q3 December 2020. Consolidated profit before tax (PBT) skid 9.9% to Rs 183.83 crore in Q3 FY22 from Rs 203.99 crore in Q3 FY21.

Wockhardt advanced 2.82%. The drug maker said it received the regulatory approval for exporting up to 100 million doses of Sputnik vaccines. The drug maker said that it has received permission from the Central Drugs Standard Control Organization (CDSCO) to export up to 80 million doses of Sputnik Light and up to 20 million doses of Sputnik V Component I vaccine. Wockhardts Bulk vaccine and Fill-Finish manufacturing facilities at Waluj and Shendra, Aurangabad respectively were jointly inspected and approved by Drug inspectors from CDSCO (West zone) & Aurangabad State FDA and Expert from CDL Kasauli to receive export NOC.

Strides Pharma Science rose 1.23%. On Monday, the company announced that the companys board will meet on 10 February 2022 to consider fund raising. In an exchange filing the company said, the board of directors will consider a proposal for fund raising on 10 February by way of issue of equity shares/ convertible warrants and/or any other instruments through preferential issue on a private placement basis, subject to such regulatory or statutory approvals.

Biocon gained 1.85%. The companys subsidiary, Biocon Pharma, received an approval of its Abbreviated New Drug Application (ANDA) for Posaconazole Delayed-Release tablets from the US-based drug regulatory body, USFDA. The product, Posaconazole Delayed-Release tablets, is indicated for use in the prevention of certain fungal infections in patients with severely weakened immune systems and is available in 100 mg strength. This approval would further add to Biocons portfolio of vertically integrated complex drug products.

IPO Updates:

The initial public offer (IPO) of Vedant Fashions (Manyavar) received bids for 1,21,44,171 shares as against 2,54,55,388 shares on offer, according to stock exchange data at 12:27 IST on Tuesday (8 February 2022). The issue was subscribed 0.48 times.

The issue opened for bidding on Friday (4 February 2022) and it will close today (8 February 2022). The price band of the IPO is fixed at Rs 824-866 per share. An investor can bid for a minimum of 17 equity shares and in multiples thereof. The IPO of 3,63,64,838 equity shares of Re 1 each comprised of an offer for sale of up to 3,63,64,838 equity shares (including anchor portion of 1,09,09,450 equity shares).

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