Markets scale over 3-month high on financial stocks

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Published: June 23, 2020 2:50 AM

The Indian markets — which closed at a three month high continued its strong performance building on last Friday’s momentum despite the tepid global cues.

The benchmark Sensex was up by 0.52%, or 179.59 points, to close at 34,911.32 whereas, the 50-share Nifty50 gained 0.65%, or 66.8 points, to close at 10,311.2.The benchmark Sensex was up by 0.52%, or 179.59 points, to close at 34,911.32 whereas, the 50-share Nifty50 gained 0.65%, or 66.8 points, to close at 10,311.2.

The Indian equity markets started the week on a positive note, ending Monday’s trading session with gains. The equity markets remained volatile throughout the trading session but firmly held on to their gains after the two pharmaceutical companies received approvals to manufacture Covid-19 treatment drugs. The benchmark Sensex was up by 0.52%, or 179.59 points, to close at 34,911.32 whereas, the 50-share Nifty50 gained 0.65%, or 66.8 points, to close at 10,311.2.

The Nifty, which touched the high points of 10,393.65, ended the trading session off the day’s highs. The Indian markets — which closed at a three month high continued its strong performance building on last Friday’s momentum despite the tepid global cues. Pharmaceutical major Glenmark on Saturday announced that it has launched antiviral drug Favipiravir under the name FabiFlu at Rs 103. The drug would be used to treat patients with mild to moderate Covid-19 symptoms. The shares of Glenmark touched its 52-week-high on Monday but cooled off towards the end of the day on profit-taking. The stock jumped 28.25% to close at Rs 525 a piece. On the other hand, Cipla received a nod to launch a generic version of Remedesvir under the name Cipremi. Both the pharma companies received a nod from the Drug Controller General of India (DGCI) to manufacture these treatment drugs. Stock price of Cipla rallied 3.19% to close at Rs 656.6 apiece.

Rusmik Oza, executive vice president — head of fundamental research, Kotak Securities, said, “The Nifty-50 reversed marginally higher from its 200 weekly moving average, which was at 10,375. It did go to 10,390 twice but did not cross 10,400 level. Looking at the breadth of the market the undercurrent looks quite strong. The probability of Nifty breaking past 10,400 exists if BFSI stocks move up sharply. BFSI sector has grossly underperformed in the recent upmove so it can do a catch up rally. Most other sectors have already moved up so they may lack the strength to drive Nifty further.”

Foreign Portfolio Investors (FPIs) have been buyers in the Indian equity markets for most part of June. Their inflow stands at $2.7 billion in total till June 19. They bought stocks worth $162.69 million on Friday, provisional data on the exchanges shows. On the other hand, domestic institutional investors sold stocks worth $115.83 million on Friday.

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