Sensex, Nifty Gain For Second Day Aided by I.T., Pharma & Auto Stocks

India's stock benchmarks advanced for the second consecutive session, aided by gains in auto, information technology, healthcare, metal and consumer durables stocks. Concerns over the economic impact due to omicron strain of covid-19 intensified after Delhi government introduced yellow alert restrictions to prevent the spread of the omicron variant.

The S&P BSE Sensex rose 0.83% to 57,897.48. The NSE Nifty 50 index also advanced by similar magnitude to 17,233.25. Asian Paints Ltd. had the largest increase, rising 2.9%. Today, 47 of 50 shares rose, while three fell.

The S&P BSE MidCap almost mirrored its larger peers, adding 0.95% while the S&P BSE SmallCap outperformed the benchmarks as it rose nearly 1.5%. All the 19 sectoral indices compiled by the BSE Ltd. advanced with S&P BSE Capital Goods and Basic Materials rising over 1.5%.

The market breadth was skewed in the favour of bulls. About 2,618 stocks advanced, 764 declined and 96 remained unchanged.

• Muthoot Finance Ltd. raised to 'buy' from 'accumulate' at Nirmal Bang Institutional Equities; price target at Rs 1,854.

Source: Bloomberg

Torrent Pharmaceuticals Ltd. has announced that it will introduce MSD and Ridgeback's Molnupiravir under the brand name 'Molnutor' in India.

• Torrent Pharma inked a non-exclusionary voluntary licensing pact with MSD (a trade name of Merck & Co), earlier this year.

• Torrent Pharma has rights to manufacture, distribute and market Molnupiravir in over 100 markets including India.

Source: Exchange filing

• Sun Pharmaceutical Industries Ltd. has received DCGI’s nod to manufacture Molnupiravir under the brand name Molxvir in India.

• The duration of treatment of Molnupiravir is much shorter compared to other therapies which is a significant advantage as it reduces the pill burden and enhances compliance, the company said.

Source: Exchange Filing, Bloomberg

Shares of Gokaldas Exports Ltd. hit 10% upper circuit to a multi-year high of Rs 342.1 apiece.

• In an exchange filing post market hours Monday, Gokaldas Exports informed that the rating committee of ICRA Ltd. upgraded the long-term rating for the Rs 425 crore line of credit to [ICRA] A- (positive) from [ICRA]BBB (stable). The outlook has been revised to positive from stable.

• The rating committee also upgraded the short-term rating for the line of credit to [ICRA]A2+ from [ICRA]A3+.

Both the analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 2.3%.

• Cipla receives Emergency Use Authorisation (EUA) to launch oral anti-viral drug Cipmolnu (Molnupiravir 200 mg) in India to treat mild to moderate covid-19.

• Molnupiravir has been given permission by DCGI.

• Cipla to make Cipmolnu capsules available at all leading pharmacies and covid treatment centers across the country.

Source: Exchange Filing

India's stock benchmarks advanced, aided by gains in information technology, auto, capital goods, consumer durables and realty stocks.

The S&P BSE Sensex rose 0.87% to 57,918.64. The NSE Nifty 50 advanced by similar magnitude to 17,239.85. Asian Paints Ltd. had the largest increase, rising 2.6%. In midday trading, 47 of 50 shares rose, while 4 fell.

The S&P BSE MidCap almost mirrored its larger peers, gaining 1% and S&P BSE SmallCap outperformed with gains of 1.5%. All the 19 sectoral indices compiled by BSE Ltd. advanced, with S&P BSE Capital Goods rising over 1.6%.

The market breadth was skewed in the favour of bulls. About 2,580 stocks advanced, 699 declined and 110 remained unchanged.

Shares of Shyam Metalics & Energy Ltd. rose over 9%, the biggest intraday gain in over six months, to Rs 348.9 apiece, after the company announced strategic capacity expansion plans for FY2021-22.

• Firm received "consent to operate" from Odisha state pollution control board to increase captive power generation at Sambalpur unit.

• Capacity at Sambalpur unit to rise to 158 MW from 118 MW

• Aggregate capacity to grow to 267 MW from 227 MW.

• Firm also received CTO from West Bengal Pollution Control Board for capacity expansion at Jamuria Plant.

• Expansion at Jamuria plant to add 0.25 million tonne per year across steel products.

• All the four analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 79.2%.

Source: Exchange Filing, Bloomberg

Shares of Greenlam Industries Ltd. rose nearly 2% apiece after the company approved raising of funds and issuance of equity shares through QIP basis or any other permissible modes for an aggregate amount up to Rs 500 crore.

Of the eight analysts tracking the company, five maintained 'buy', two maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 1.5%.

Source: Bloomberg, Exchange Filing

Shares of Ajanta Pharma Ltd. rose nearly 5% to Rs 2,279.65 apiece after the company approved buyback of up to 11,20,000 equity shares of face value Rs 2 each at a price of Rs 2,550 per share.

• Total pay-out towards buyback of shares will not exceed Rs 356 crore (including buyback tax of Rs 70 crore)

• Record date has been fixed as January 14, 2022.

• Buyback represents 1.29% of the total equity shares of the company and 9.89% of paid-up share capital and free reserves.

Source: Exchange filing, Bloomberg

• Deposit proceeds will be used to finance projects and firms supporting UN Sustainable Development Goals (SDGs.

• Deposits shall be offered to both retail and corporate customers.

• Proceeds from deposits to be used in energy efficiency, renewable energy, green transport, greenhouse gas reduction.

Source: Exchange Filing

Shares of Siemens Ltd. rose 5%, the biggest intraday gain in two weeks, to Rs 2,470 apiece after the company announced a joint venture between its subsidiary Siemens Project Ventures GmbH and TRIL Urban Transport Pvt, a Tata group company under the public-private partnership (PPP) route.

The two companies will together develop the metro corridor from Hinjewadi to Shivajinagar in Pune. The 23.3 kilometre corridor with 23 stations will be the first metro project in India under the New Metro Rail Policy.

The project is to be completed in 39 months. The order size of Siemens Ltd. is approximately Rs 900 crore.

Of the 29 analysts tracking the company, 15 maintained 'buy', seven maintained 'hold' and seven maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 5%.

Source: Exchange Filing, Bloomberg

• Tata Consultancy Services Ltd. and Bharti Airtel Ltd. successfully tested innovative use cases from TCS' Neural Manufacturing solutions suite on Airtel's 5G network.

• TCS tested two use cases on Airtel's 5G testbed - remote manufacturing operations using robotics and vision-based quality inspection.

Source: Exchange Filing

Most yields along the India sovereign yield curve rose, with 4-year bonds moving the most in Tuesday morning trading.

• The 4-year yield rose 3.6bps to 5.576%

• The 10-year yield rose 2.5bps to 6.49%

• The 20-year yield remained unchanged at 6.914%

• The 4-year-10-year yield spread was 91.4bps, vs previous close 92.4bps

Source: Bloomberg

• MAS Financial Services Ltd. has entered into strategic co-lending partnership with Bank of Maharashtra for lending to MSME segment.

• The partnership is expected to help MAS Financial broaden its client base and expand credit flow.

Source: Exchange Filing.

Shares of Ramkrishna Forgings Ltd. rose as much as 2.4% in intraday trade to Rs 957.35 apiece after the company received a letter of intent worth Rs 22.5 crore per annum from Major Tier 1 Axle manufacturer in Mexico.

In an exchange filing, the company said that the LoI pertained to the manufacturing of front axle beam.

Of the five analysts tracking the company, four maintained 'buy' and one maintained 'hold' recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 46.2%.

Source: Exchange Filing, Bloomberg

Shares of BSE Ltd. rose over 10.5%, the biggest intraday gain in over three weeks, to Rs 2,028 apiece, after the company said it will consider the proposal for issue of bonus shares in its board meeting on February 8, 2022.

In an exchange filing post market hours Monday, BSE said that it will also approve the financial results for the quarter ended December 31, 2021 on February 8.

Of the seven analysts tracking the company, four maintained 'buy' and three maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 6.9%.

Source: Exchange Filing, Bloomberg

Supriya Lifescience pre-market discovery price at Rs 425 vs issue price of Rs 274.

Source: Bloomberg

Granules India Ltd. announced that U.S. FDA approved the abbreviated new drug application filed by its subsidiary Granules Pharmaceuticals, for Prazosin Hydrochloride capsules, USP 1mg, 2mg and 5mg (bioequivalent to Mini plus capsules of Pfizer). The product would be avaialble for the U.S. market shortly, the company said in an exchange filing.

The capsules are used to treat high blood pressure. The current annual U.S. market for Prazosin Hydrochloride is approximately $54 million, according to IQVIA

India's stock benchmarks advanced, aided by power, energy, banking and consumer durables stocks, as global markets rose after S&P 500 posted its 69th record close this year.

The S&P BSE Sensex rose 0.61% to 57,768.83. The NSE Nifty 50 advanced by similar magnitude to 17,195.65.

The broader indices almost mirrored their larger peers with the S&P BSE MidCap gaining over 0.6% and S&P BSE SmallCap rising 0.9%. All the 19 sectoral indices compiled by the BSE Ltd. advanced with S&P BSE Power index gaining over 1%.

The market breadth was skewed in the favour of bulls. About 2,000 stocks advanced, 385 declined and 69 remained unchanged.

• Biocon cut to 'hold' from 'add' at ICICI Securities; price target: Rs 371.

• Jubilant Pharmova raised to 'buy' from 'add' at ICICI Securities; price target: Rs 678.

• Torrent Pharma cut to 'hold' from 'add' at ICICI Securities; price target: Rs 3,172.

• Cadila Healthcare raised to 'add' from 'hold' at ICICI Securities; price target: Rs 510.

Source: Bloomberg

• Strides Pharma raised to 'add' from 'hold' at ICICI Securities; price target: Rs 500.

• Glenmark Pharma raised to 'buy' from 'add' at ICICI Securities; price target: Rs 607.

• Divi's Labs raised to 'hold' from 'reduce' at ICICI Securities; price target: Rs 5,628.

Source: Bloomberg

India's union budget may waive a Rs 400 per tonne cess on coal used by power projects that meet certain emission norms, Mint reported, citing two people aware of the matter.

• The waiver is expected to encourage power producers to reduce their carbon impact and help India meet its climate commitments.

GoFirst has put off its plan for an initial public offering amid concerns over the rise in covid cases, Business Line reported, citing unnamed company sources.

• GoAir has re-branded itself as GoFirst.

• The company is likely to revisit the plan in late January, according to Business Line.

Reliance Retail Ventures, the retail unit of Reliance Industries Ltd. may acquire a minority stake in warehouse robotics company Addverb Technologies for nearly Rs 300 crore, reported Mint, citing two people familiar with the matter.

• Addverb will be valued between Rs 1,590 crore and Rs 1,660 crore, if the deal goes through.

• Nucleus Software Exports Ltd. share buyback to open January 3 and close January 14.

Source: Exchange filing