Live: Sensex, Nifty Open Firm; Titan, Shree Cement Drop After Q1 Letdown
Opening Bell: Sensex, Nifty Open Higher Inline With Asian Peers
Indian equity benchmarks opened on a firm note inline with Asian peers and as investors switched their attention toward business resilience despite a steady rise in new coronavirus infections.
The S&P BSE Sensex climbed as much as 0.9% to 38,528 while the NSE Nifty 50 Index rose nearly 0.5% to 11,322. All sectoral indices advanced led by 2 percent jump in the NSE Metal Index.
The broader market too gained with the NSE Smallcap and Midcap indices advancing over 0.5% each. The overall market breadth was firmly in favour iof the bulls with 1216 stocks gaining while 387 declines on the NSE in Mumbai trading.
Drugmakers Under Selling Pressure
Dr Reddy's Launches Generic Ciprodex In U.S. Market
Dr. Reddys Laboratories Ltd announced the launch of a generic version of Ciprodex Otic Suspension in the American market, following approval from the U.S. Food and Drug Administration.
Ciprodexis used in adults and children 6 months of age or older to treat certain types of infections caused by certain germs called bacteria. The brand had U.S. sales of approximately $453 million MAT (moving annual turnover) for the most recent 12 months ending in June 2020 , the drug maker said, quoting market data.
The drugmaker’s stock swung between gains and losses in early trade. It is up over 60% YTD and its RSI indicates the stock may be overbought at current levels. Around 56% of the analysts tracking the scrip have maintained a ‘buy’ call on the pharma major.
Large Trades Alert
- Tech Mahindra has 10 lakh shares change hands in a pre-market trade.
Affle India Jumps Over 8.5% To Highest In Six Months
Shares of the tech company rose as much as 9.5% to Rs 2,220 apiece on heavy trading volume.
The stock has climbed for eight days in a row and its Relative Strength Index is now in overbought zone. It has gained nearly 40% year-to-date.
The company's June quarter profit rose 42.3% on a yearly basis to Rs 18.77 crore. It's profit in the year-ago quarter was Rs 13.19 crore. PAT margin during the quarter expanded by 2.7% YoY.
Shree Cement Top Nifty Loser After Q1 Letdown
Shares of the cement maker fell as much as 4.8 percent after its first quarter operational performance missed analysts’ expectations.
Antique Stock Broking says
- Hold rating maintained
- Price target raised to Rs 19,200 from Rs 18,220
- Operational performance below estimates unlike peers
- Continue to like company's leadership position in key markets
- Attractive unit costsand sturdy balance sheet
- Current valuations factor in strong fundamentals
CLSA says
- Sell rating maintained
- Price target of Rs 20,300
- Higher volumes offset weak realisations
- May have to forego pricing to maintain higher growth
- Better return profile is more than priced in at current levels
- Tweak FY21-23CL Ebitda estimates by -1% & +3% respectively
- See better opportunities elsewhere in the sector
JPMorgan says
- Neutral rating maintained
- Price target raised to Rs 19,250 from Rs 18,000
- In-line quarter unlikely to enthuse markets after a series of beats from peers
- Scope to cut costs meaningfully from current levels is limited
- Expect Ebitda per tonne to remain rangebound
- Remain neutral as we struggle to find upside at current demanding valuations
HSBC says
- Reduce rating maintained
- Price target of Rs 14,800
- Ebitda missed estimates due to lower than expected realisations
- Only major cement producer to report a YoY decline in Ebitda per tonne
- Find expensive valuations unjustified