Sensex, Nifty  Close Lower As Pharma Stocks, Reliance Drag
An employee looks at a computer monitor at a brokerage firm in Mumbai, India. Photographer: Prashanth Vishwanathan/Bloomberg 

Sensex, Nifty Close Lower As Pharma Stocks, Reliance Drag

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Closing Bell

India stocks ended lower as the country continues to witness a persistent increase in the daily caseload of coronavirus, forcing investors to weigh the chances of the government announcing a nationwide lockdown to control the situation.

The S&P BSE Sensex declined 0.95% to 48,718.52 while the NSE Nifty 50 Index lost 0.94% to 14634.15. Reliance Industries Ltd. fell 2.1%, extending the decline for the third straight day.

Sensex, Nifty  Close Lower As Pharma Stocks, Reliance Drag

Sixteen of the 19 sector sub-indices compiled by BSE Ltd. climbed, led by a gauge of telecom companies.

Pharma Stocks Sell-Off

Sensex, Nifty  Close Lower As Pharma Stocks, Reliance Drag

Alembic Pharma Q4 Net Profit Beats Estimates

Alembic Pharma reported net income for the fourth quarter that beat the average analyst estimate.

  • Net income Rs 251 crore, +12% YoY, estimate Rs 233 crore
  • Total costs Rs 992 crore, +6.6% y/y
  • Raw material costs Rs 275 crore, -16% q/q
  • Ebitda Rs 359 crore, +5.9% y/y, estimate Rs 326 crore
  • Revenue Rs 1,280 crore, +5.8% YoY, estimate Rs 1,280 crore
  • Dividend per share Rs 14

COMMENTARY AND CONTEXT

  • International formulations grew 19% for FY21; U.S. Generics grew 9%
  • Ex-US International Formulations grew 57%
  • RD spend 12% of revenue or 6.7 billion rupees for the year
  • India branded formulations business grew 5%
  • API business grew 38% in the quarter and 35% for FY21

IPL Suspended: Stocks In Focus

Shares of Sun TV Ltd., owner of Hyderabad franchise of Indian Premier League erased gains to fall as much as 2% after the T-20 cricket tournament was deferred following some players testing positive for Covid-19.

Stock Reaction

  • Reliance Industries Ltd., which owns Mumbai Indians team, extends drop to as much as 2%, set for a third day of losses.
  • India Cements Ltd., which owns team Chennai Super Kings that has won 3 IPL titles, swung between gains and losses. Down as much as 0.6% as of 2:40 p.m.
  • United Spirits Ltd., the holder of Royal Challengers Bengaluru franchise, declined 0.6% but soon recouped the losses to trade little changed.

SBI Life Gains For A Third Session

SBI Life Insurance rises as much as 4.9% to its highest since Feb. 1.

“Growth runway” afforded by parent SBI’s customer pool, of which the insurer has tapped less than 3%, and new bancassurance partnerships, according to Jefferies.

SBI Life will leverage partnerships with state-owned banks such as Indian Bank, Syndicate Bank, Uco Bank, Punjab & Sind Bank, analysts including Prakhar Sharma write in a note.

Jefferies raise price target by 3.6% to Rs 1,150; maintains buy

Market Insight

  • Trading volume was more than six times the 20-day average for this time of day.
  • Trading in the company's call options totalled 24,981 contracts, compared with the average of 5,684 over the past 20 days. Trading in the company's put options totalled 8,893 contracts, compared with the average of 2,110 over the same period.
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