Sensex, Nifty Register Longest Streak Of Weekly Decline In 11 Months
A customer watches share prices on an electronic stock board at a security firm. (Photographer: Tomohiro Ohsumi/Bloomberg)

Sensex, Nifty Register Longest Streak Of Weekly Decline In 11 Months

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Closing Bell

India’s benchmark equity fluctuated all day to finally ending lower to log their third consecutive week of decline, as a deadly wave of coronavirus infections raises concerns over business recovery due to lockdown-like curbs.

The S&P BSE Sensex declined 0.4% to 47,878.45, extending its weekly drop to 1.9%. The gauge had risen as much as 0.4% earlier in the day. The NSE Nifty 50 Index also declined by similar magnitudes before reversing to gain 0.4%. Both measures logged their longest run of weekly losses since May 22.

Top Nifty Losers and Winners This Week (Source: Bloomberg)
Top Nifty Losers and Winners This Week (Source: Bloomberg)

The Sensex has retreated more than 7% from its recent peak on Feb. 15, nearing losses read as a technical correction. India added a record 332,730 cases in the last 24 hours, taking the total number of cases to 16.26 million, the second-highest in the world.

Fourteen of the 19 sector sub-indexes compiled by BSE Ltd. declined, led by a gauge of telecom stocks. On the flip side, the S&P BSE Power Index jumped 2.35%, the most in nearly four weeks.

Sentiment among global investors is souring as India’s tally of daily infections climbs to successive records. Global funds have turned net sellers of local stocks in April after a six-month buying spree, helping make the Sensex this month’s biggest loser in Asia. Foreign investors have sold $716 million of local shares through April 19.

Cadila Gets Emergency Use Nod For Moderate Covid Treatment

Shares of the drugmaker rose as much as 3.7% after it received an emergency use approval from DCGI for using Pegylated Interferon alpha-2b, ‘Virafin’ to treat moderate Covid-19 infection in adults.

A single dose subcutaneous regimen of the antiviral, Virafin, will help patients recover faster and avoid complications when administered early, Cadila said.

In a trial conducted in 20-25 centres across India, Virafin had shown lesser need for supplemental oxygen, indicating that it was able to control respiratory distress and failure.

Stock Insight

  • Trading volume was 63% above the 20-day average for this time of day.
  • The relative strength index on the stock was 79, indicating it may be overbought.
  • Cadila Health trades at 29 times its estimated earnings per share for the coming year.
  • Analyst consensus price target is 12.1% below the current market price.
  • Scrip is up over 19% year-to-date vs 0.2% for the Sensex

Alok Industries Up 7.1%, Most in Seven Weeks; Volume Doubles

Alok Industries Ltd. rose 7.1%, more than any full-day gain since March 3. Trading volume was double the average for this time of day. The stock was the best performer among its peers.

  • Trading volume was 13.6 million shares, double the 20-day average of 5.86 million shares for this time of day.
  • Stock advanced 216% in the past 52 weeks, compared with a 99% increase for the company's Bloomberg peers

Bajaj Finserv, Power Grid, SBI Life in Focus: Options Watch

  • SBI Life options volume 3.6x the 20-day average, with 13,410 calls changing hands vs 4,405 puts
    • Stock up 1.7%, volume 1.6x the 20-day average for this time of day
  • Power Grid options volume 3.1x the average, with 11,904 calls vs 3,048 puts
    • Stock up 4.2%, volume 1.2x the average
  • Bajaj Finserv options volume 2.1x the average, with 8,434 calls vs 3,653 puts
    • Stock up 1.7%, volume 0.9x the average

Source: Bloomberg

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