Tag: covid 19 vaccine

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Stocks to Benefit from Potential Covid-19 Vaccines

The Covid-19 pandemic has caused a deep impact on people’s livelihoods and health. The economic and social disruption caused by this unprecedented pandemic is devastating. As of November 24, official data from John Hopkins University shows that there are more than 59 million confirmed cases of Covid-19 worldwide.

The only factor which keeps our spirits high is the fact that potential Covid-19 vaccine candidates are showing great results in the final stages of trials. Let us take a look at the updates of 4 major vaccines that could be supplied in India, as soon as they receive regulatory approvals.

  1. Oxford-AstraZeneca Vaccine
  2. Pfizer-BioNTech
  3. Gamaleya Institute-RDIF
  4. Bharat Biotech-ICMR
  5. Which Stocks Could Benefit from Vaccine?

Oxford-AstraZeneca

The AZD1222 Covid-19 vaccine is jointly developed by a Swedish-British pharma company AstraZeneca and the University of Oxford. According to trials conducted by the developers, the vaccine has shown an overall efficacy rate of 70%. An analysis issued by Oxford-AZ on 23rd November showed some very exciting results. The participants who received a lower amount of the vaccine in the first dose and then the full amount in the second dose were found to be 90% less likely to develop Covid.

The vaccine has also shown that it works across all age groups, and is also able to reduce asymptomatic infection. Another important feature of the Oxford-AZ vaccine is that it can be stored at normal fridge temperatures. This means that it would be cheaper to distribute and administer the vaccine to people. Experts believe that these 3 factors make this candidate a better choice, as compared to the results published by Pfizer and Moderna. There were no severe cases or hospitalisation in the 23,000 people who got the shot. 

The developers of the vaccine expect to supply 2.9 billion doses once they receive emergency use authorization. They have also stated that the vaccine would be made available in the UK first. The United States, the United Kingdom, and India are the main countries that have committed to buy a majority of its doses. The price of the shot has been set at $4-5.

It is expected to be cheaper in India, as the doses are also being manufactured by the Serum Institute of India (SII). The SII had partnered with AstraZeneca to develop the vaccine under the ‘Covidshield’ brand in our country There is a high chance that this vaccine will be the first to be administered to Indian citizens.

“The Serum Institute of India (SII) can apply for emergency use authorization (EUA) of the AstraZeneca and Oxford University’s COVID-19 vaccine in India once it is approved in the UK, since it is a partner developer” – Dr. Randeep Guleria, Director of AIIMS.

Pfizer-BioNTech

The Covid-19 vaccine candidate termed mRNA-BNT162 is being developed by US-based Pfizer Inc and Germany-based BioNTech. According to the final trials conducted by both companies, the vaccine has proven to be 95% effective in preventing Covid-19. Pfizer has approached the United States Food and Drug Administration (USFDA) to appeal for an emergency use authorization of its vaccine. However, a report on November 23 states that the USFDA will only assess the appeal on December 10.

Pfizer and BioNTech expect to supply 1.3 billion doses of the vaccine, as soon as they receive the approval from the USFDA. The United States, the UK, European Union, and Japan have already committed to buying the doses. The price per shot has been set at $20. Pfizer expects the vaccine to be rolled out by Christmas time in the United States.

On November 24, India’s Union Health Minister Harsh Vardhan said that India may not require the Pfizer-BioNTech vaccine. He stated that other vaccine candidates such as the one developed by Oxford-AZ are showing promising results. Also, the storage and distribution of Pfizer’s vaccine require an ultra-cold chain of minus 70 degrees. This would make it very expensive in India. However, based on India’s current Covid-19 situation, the government may consider buying a significant quantity of this vaccine.

Gamaleya Institute-RDIF

The Sputnik-V vaccine is being developed by Russia’s Gamaleya Research Centre and the Russian Direct Investment Fund (RDIF). They have partnered with Hyderabad-based Dr. Reddy’s to distribute the vaccine in India. According to the second interim analysis of 18,000 people who got the shot, the vaccine had an efficacy rate of 95%. They are currently undergoing Phase-3 trials with a total of 40,000 volunteers. RDIF has stated that Sputnik-V provides a stronger and longer-term immune response.

The developers of the vaccine expect to supply 1 billion doses of the vaccine, once they receive regulatory approvals. Russia, India, Vietnam, and Brazil have committed to buying the vaccine doses. The vaccine has been priced at $10 per shot.

Bharat Biotech-ICMR

Hyderabad-based Bharat Biotech has partnered with the Indian Council of Medical Research (ICMR) to develop India’s first indigenous Covid-19 vaccine- COVAXIN. The vaccine had initiated Phase-3 trials earlier this month with 26,000 volunteers from across 22 sites in India. This is the largest clinical trial conducted for a coronavirus vaccine candidate in India. On 22nd November, they announced that Covaxin will be at least 60% effective based on earlier trial results.

However, the company has not released the results of its Phase 1 & 2 results to the public. This makes us wonder about the actual effectiveness of the vaccine. The company expects the vaccine to be rolled out by mid-2021, after necessary approvals.

Which Stocks Could Benefit from Vaccine?

We can see that many sectors would benefit from the development of a vaccine in India. Whether it be manufacturing, storage, distribution, or administration of the vaccine, the support of many companies is needed. Earlier this month, it was announced that Pfizer’s vaccine needed a cold-storage facility to be stored and transported. On the same day, Snowman Logistics Ltd. said that they would create the necessary technology to provide logistical support for the vaccine.

Apollo Hospitals has also announced that they have the cold storage chain ready for Pfizer’s Covid-19 vaccine. They are ready to administer 10 lakh doses of the Covid-19 vaccine per day, once it is launched. The company has trained around 10,000 people to administer the vaccine in India.

Way back in July, Piramal Glass announced that they will be ready to supply more glass vials for the Covid-19 vaccines in India. They have taken proactive measures to meet any surge in demand for glass vials from the pharmaceutical industry across the globe. It has been estimated that India will require 6 crore vials for Covid-19 shots in the first six months of the vaccine being launched.

Dr. Reddy’s Laboratories will conduct all necessary trials and distribute the Sputnik-V coronavirus vaccine in India. The vaccine had arrived in Hyderabad on November 11, after regulators had approved to go ahead with the Phase-3 trial of the vaccine in India.

Just another thought that came into the team’s mind while brainstorming was that syringe manufacturers would also benefit from a vaccine. Companies like Albert David can be looked into. Also, diagnostic firms such as Dr. Lal PathLabs Ltd. would benefit from their Covid-19 testing facilities, until vaccines are launched.

What other sectors do you think will benefit from a Covid-19 vaccine?

Conclusion

As we can see, the Covid-19 vaccine candidates are showing great results. The vaccine developed by Oxford and AstraZeneca seems to be the most promising one, as compared to others. The developers of these vaccines are hopeful to supply it by the beginning of 2021. However, experts state that the distribution of the vaccine for all Indian citizens would be a major hurdle. For this, large pharmaceutical companies are also seeking logistical support from Indian firms to store and distribute vaccines. So, make sure that you follow news relating to such deals or orders.

The sentiments surrounding the efficiency of Covid-19 vaccine candidates have certainly lifted our spirits. However, do bear in mind that cases of Covid-19 are still rising, and many countries had even re-introduced lockdowns. Some parts of India are still reporting a large number of daily cases as well. Let us hope that the vaccine is available for every single citizen of India, once it is launched. 

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The Atmanirbhar Bharat Abhiyan 3.0 Explained

The Finance Ministry on Thursday (November 12) made a series of announcements with respect to a new stimulus package. Named as the Atmanirbhar Bharat Abhiyan 3.0, the package has allocated significant amounts to vital sectors of our economy. The total package has been estimated at Rs 2.65 lakh crore. With a focus on boosting production and becoming self-reliant, the latest economic package has addressed concerns regarding the sectors which need the most support. Let us look at the 12 important announcements that were made by the Finance Minister, Smt. Nirmala Sitharaman.

1. The Atmanirbhar Bharat Rozgar Yojana

In order to boost employment in India, a new scheme by the name of Atmanirbhar Bharat Rozgar Yojana (ABRY) has been created. The main aim of this program would be to create new employment opportunities during the Covid-19 recovery phase. An amount of Rs 6,000 crores has been allocated towards ABRY. 

Under this scheme, benefits would be given to any new employee that joins an establishment that is registered with the Employees’ Provident Fund Organisation (EPFO). The employees’ monthly salary should be less than Rs 15,000. Any member who had lost their job due to the Covid-19 pandemic between 1st March and 30th September, and is now entering into a new job would also benefit from the scheme. The ABRY scheme would be operational till 30th June 2021.

2. Launch of the ECLGS 2.0

The Emergency Credit Line Guarantee Scheme (ECLGS), worth Rs 3 lakh crore has been extended till 31st March 20201. This scheme provides fully guaranteed, collateral-free loans to business enterprises, MSME units, and individuals for business purposes. According to the new ECLGS 2.0, loans will be provided to an additional 26 “stressed sectors”. These are specific sectors in India that were affected by the Covid-19 pandemic, such as power, steel, and real estate. The scheme would provide support by helping businesses to retain their employees and meet certain liabilities.

3. Production Linked Incentive (PLI) Scheme

On 11 November, the Union Cabinet had approved this particular scheme for an additional 10 key sectors. The main purpose of the PLI scheme is to boost domestic production, by encouraging foreign companies to start their production activities in India. Domestic companies would also get the necessary push to expand their manufacturing units. This scheme will be worth Rs 1.46 lakh crore and would be applicable for 5 years.

The sectors that will benefit from the scheme include automobiles, pharmaceuticals, electronic products, etc.

4. Additional amount for PM Awaas Yojana- Urban

The Prime Minister’s Awaas Yojana- Urban (PMAY-U) is a scheme to revive the Housing and Real Estate Sector. The Finance Ministry has stated that Rs 18,000 crore will be provided over and above the Budget Estimates for 2020-2021 for this particular scheme. This would help around 18 lakh houses to complete construction. It is also expected to generate around 78 lakh additional jobs in urban areas. This scheme is also part of the government’s “Housing for All” mission.

5. Support for Construction & Infrastructure

To provide support to contractors, the performance security on contracts has been reduced to 3%, instead of 5%-10%. Performance security is commonly used in the construction industry. It is a means of insuring a client against the risk of a contractor failing to fulfill contractual obligations to the client. This relaxation will be applicable till 31 December 2021.

6. Income Tax Relief for Developers & Home Buyers

The economic slowdown due to the Covid-19 pandemic has led to a decline in the prices of residential units. At the same time, taxes for these units are significantly higher. To provide a demand boost for residential real estate, new relaxations on the income tax regulations have been introduced. The differential between circle rate and agreement value has been increased from 10% to 20% till June 30, 2021, under the Income Tax Act. This would be applicable only on a primary sale of residential units worth up to Rs 2 crore. This particular move will help middle-class families to buy real estate properties.

7. Equity Infusion in NIIF Debt Platform

The Government will invest Rs 6,000 crore in the National Investment and Infrastructure Fund’s (NIIF) Debt Platform. The NIIF attracts a lot of sovereign funds from other countries and provides major support for the infrastructure activities in our country. It has a target of raising Rs 1.10 lakh crore by 2025 through the debt market, for various infrastructure projects.

8. Fertilizer Subsidies for the Agriculture Sector

The Government has announced Rs 65,000 crore for providing fertilizer subsidies to Indian farmers. This would help farmers to meet the ever-growing consumption needs of our country’s population. According to this particular scheme, 140 million farmers would be provided with subsidized fertilizer. It would be ensured that all farmers receive the proper resources before the upcoming crop season.

The Expenditure Secretary has also clarified that Rs 65,000 crore for this subsidy is over and above the last budget estimate. Total expenditure in this financial year would be in the order of Rs 1.38 lakh crores for fertilizer subsidy.

9. Boost for Rural Employment

Prime Minister Garib Kalyan Rozgar Yojana (PMGKRY) is a very successful scheme that provides guaranteed employment opportunities for members of the rural population in India. It is active in almost 116 districts in India. The Government has allocated an additional amount of Rs 10,000 crore to the PMGKRY scheme. This would help to accelerate the growth of the rural economy.

10. Boost for Exports

The Export-Import Bank of India (EXIM Bank) is a specialized financial institution, wholly owned by the Government of India. It was set up in 1982 for financing, facilitating, and promoting foreign trade in India. The EXIM Bank provides Lines of Credit (LOC), on behalf of the Government, to certain developing countries. A line of credit is a flexible loan from a financial institution that consists of a defined amount of money that you can access as needed, and repay either immediately or over time. This scheme allows Indian exports to receive a boost, as the developing countries must import items worth 75% value of the LOC.

The Government has allocated Rs 3,000 crore to the EXIM Bank for the promotion of exports through the LOC scheme. The sectors that would benefit are railways, power, automobile & auto components, sugar projects, etc.

11. Capital and Industrial Stimulus

The Government believes that public expenditure on infrastructure is important at this period of time. An additional amount of Rs 10,200 crore will be provided towards the Capital and Industrial Expenditure. This amount would be used for domestic defense equipment, industrial incentives, industrial infrastructure, and green energy initiatives.

12. R&D Grant for Covid Vaccine Development

An amount of Rs 900 crore will be provided for Covid Suraksha Mission for research and development activities. This particular mission is headed by the Department of Biotechnology to develop the Covid vaccine in India. This does not include the cost for distribution of the vaccine, once developed.

The following table shows the amount that has been allocated for each scheme that has been announced by the Finance Ministry on November 12, 2020.

The following table shows the total amount that has been allocated for various stimulus packages announced by the Government in the current financial year. 

 “We are yet again proving that the policy that we are taking up even in PLI through which we want manufacturers to come to India is clearly to say we want to build on our strength but yet link with the global value chains.”- Finance Minister Nirmala Sitharaman.

India’s Future

The series of measures included in Atmanirbhar Bharat 3.0 will definitely provide a boost to India’s Covid-hit economy. The most important feature of the package is that it would help towards creating new jobs in India. It has also provided a major push towards the target of ‘housing for all’. Infrastructure activities will also receive adequate incentives. The Government has focused on those sectors that essentially need support for a major recovery, amidst the Covid-19 pandemic. The Production Linked Incentive(PLI) Scheme is also going to give a push to India’s dream of becoming the world’s manufacturing hub.

Pushing rural housing and job creation, along with subsidies on fertilisers is also sure to give a boost to the rural economy. And as we all know, if the rural economy is doing well, it is definitely good for an agriculture-driven economy of India. Tractor sales and two-wheeler sales are expected to go up as the life of a rural Indian gets better.

As investors, we need to keep a close watch on how the measures would be implemented. Also, make sure you take up the mission to find all the listed companies that would benefit from these schemes, both directly and indirectly.

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The Pfizer Vaccine – All You Need to Know

A major announcement from the United States on November 9 has completely lifted our hopes and spirits! Since March, scientists around the world have been working tirelessly towards creating an effective vaccine against the novel coronavirus. And now, drugmakers Pfizer and BioNTech have come out with a very positive result. The vaccine developed by the two companies was found to be 90% effective in preventing Covid-19 infections in ongoing Phase-3 trials.

We saw that the announcement made a ripple effect across the world, with the stock markets reaching new highs. Let us dive deep into the details of the vaccine, and recent developments surrounding it.

  1. Pfizer’s Covid-19 Vaccine Trials
  2. What Happened After the Announcement?
  3. Will the Vaccine be Available in India?
  4. Will a Vaccine Solve All Our Problems?

Pfizer’s Covid-19 Vaccine Trials

US-based Pfizer Inc and Germany-based biotechnology firm BioNTech had begun their collaboration in March 2020. Their partnership is aimed at co-developing and distributing a potential Covid-19 vaccine. Here are some important facts about the recent Phase-3 trials of the potential vaccine:

  1. The Phase-3 trials of the vaccine involved 44,000 participants in six countries. Half of them were administered with the vaccine, and the other half were given a placebo- a pill with no effect (like a sugar pill). A participant would not know if he got the vaccine or the placebo, thus helping to analyse the psychological effects.
  1. As per Pfizer’s interim analysis, the vaccine is 90% effective in preventing Covid-19 in participants who had no prior history of a SARS Cov-2 infection. However, Pfizer had not disclosed how many participants from the total number were used to formulate this interim analysis. In this sample, it is not clear how many had received the vaccine, and how many had received the placebo.
  1. Pfizer has stated that protection against the virus is achieved 28 days after the injection of the vaccine.
  1. The announcement made on November 9 offers the first compelling evidence that a vaccine can prevent Covid-19. Pfizer’s report from Phase-3 trials is being welcomed by other scientists around the world. It also puts Pfizer-BioNtech ahead of the other vaccine makers.
  1. Pfizer is planning to approach the United States Food and Drug Administration (USFDA) for emergency authorization of the vaccine later this month. Meanwhile, the Phase-3 trials will continue until there are 164 Covid-19 cases among the volunteers. This final analysis will confirm the actual percentage of effectiveness of the vaccine.
  1. An important factor to be noted is that experts in the field are yet to receive an answer on how much protection the vaccine offers, and for how long it would last. So, we can say that this announcement is being taken with “cautious optimism”.

What Happened After the Announcement?

Ever since Pfizer made the statement on Nov 9, we can see that important decisions are being taken at a very rapid pace. According to a statement from Pfizer, the company has plans to globally produce up to 50 million vaccine doses in 2020, and up to 1.3 billion doses in 2021.

Reports have also stated that many countries have already made deals with the drugmaker and have plans to hoard the vaccine. The US Government has signed a $1.95 billion (~Rs 14,474 crore) deal with Pfizer to buy 100 million doses. According to Alex Azar, the US Health Secretary, their government would begin vaccinating Americans in December. This is only possible if Pfizer submits the initial positive data from its vaccine trials to the USFDA, as soon as possible.

On the day of the announcement, Pfizer CEO Albert Bouria made a very calculated move. As per a regulatory filing, 1,32,508 Pfizer shares were sold by the CEO at a price of $42 per share. This means that he had sold $5.6 million of his shares in the company. This has raised many eyebrows as almost 62% of his entire stock in the company was sold right at the peak. Several questions have also been raised regarding the effectiveness of the vaccine after this high profile stake sale.

Will the Vaccine be Available in India?

Our Indian Government is now in discussions with Pfizer to make the vaccine available in our country. So far, the American firm does not have a distribution pact with any Indian company. It has been reported that India would soon sign an agreement with the US drugmaker. However, India has some significant hurdles to overcome to ensure that we can obtain Pfizer’s vaccine.

In a statement made on November 10, Kiran Mazumdar Shaw, the Managing Director of Biocon, stated that the Pfizer vaccine is unlikely to make its way to India. The reason that she had put forth was that the vaccine requires an ultra-cold chain of minus 70 degrees. This means that the vaccine has to be stored and transported in an ultra-cold facility. Currently, India does not have the necessary logistical support to conduct such a highly specialized task. The cost of the vaccine in India may also become very high due to this reason.

Around the same time, we had also received some positive statements from Snowman Logistics. The company has found an opportunity to improve its business, by creating a super-cold storage facility for Pfizer’s Covid-19 vaccine. Sunil Nair, the CEO of Snowman Logistics, has stated that they will come up with a technology to address these requirements. On November 10, the share price of Snowman Logistics saw a surge of 14% in an intraday movement to Rs 40.95. 

Last month, Apollo Hospitals had announced that they are ready to administer 10 lakh doses of the Covid-19 vaccine per day. Today, the company’s CEO, Sunita Reddy, has said that they have the cold storage chain ready for the Pfizer vaccine.

Will Vaccine Solve All Our Problems?

Scientists have yet again proved to become a worthy opponent in the fight against a deadly virus. We have finally received an amazing update from the vaccine makers. A very effective vaccine would hopefully be available all over the world soon. The news from Pfizer had also created a very positive sentiment around the global markets. We also saw our stock market indices reaching new highs.

Our Indian companies are also preparing to create a possible technology to store and transport the vaccine. All the issues caused by the Covid-19 pandemic would soon be countered. Although a vaccine would not immediately turn around the world economies, it gives hope that there will be a brighter future going ahead. As Indians and as human beings, in the face of a problem such as Covid, we will come back much stronger. The economic conditions could become more stable, and more importantly, things are finally looking very optimistic!

Let us look forward to the latest updates surrounding the vaccines, including many others from India and around the world. We must also be aware of how our country is planning to further gear up to make the vaccine available for all citizens. And as intelligent stock market participants, identify which all sectors will benefit from the announcement of a vaccine.

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5 Reasons Why Nifty is Rising!

Nifty 50 hit a record high on November 9 as the index closed at 12,461.05, up by 1.61%. The next day, Nifty jumped again with spring and concluded at 12,631. There has been a remarkable rally in the past few days which has taken Nifty 50 to even cross its pre-covid highs. Today, as of 11 November, it has even touched 12,750.

But do we have the vaccine already? Not really. Is the global economy in a boom? Not at all. Then how are we witnessing higher highs in the Indian stock market? Here are the five reasons which are stimulating this boost in the stock market.

US Elections

As discussed in The Stock Market Show several times, the market was supposed to react positively if there was a clear winner in the US election. This is what happened. Democrat Joe Biden defeated Donald Trump to become the 46th President of the United States. To understand more about this, click here. His triumph was welcomed by the market participants. They believe that his democratic policies will help the Indian market to expand. This has instilled confidence in the investors even when India is finding it very tough to contain the spread of coronavirus. For how many days more this positive news can support Nifty is yet to be seen.

There is a constant worry lingering in the back as Trump refuses to accept defeat. Secretary of State Mike Pompeo, who is chief foreign affairs adviser to The President of The United States has even gone on to say that the Trump Administration is ready to move into a successful second term. Keep watching marketfeed for updates.

Bank Nifty Rally

Nifty Bank has been one of the key driving forces behind the Nifty rally. There are several reasons why Bank Nifty has moved on this consistent uptrend. The market was expecting not-so-great Q2 results for banks. Increased expenditure and high NPAs due to moratorium led to low expectations. But then, HDFC Bank and Kotak Bank came out with astounding numbers. Provisions for defaults were decreased which led to an increase in profits. A similar pattern was followed by every major private bank as they reported amazing numbers. The honourable Supreme Court also ruled in favour of banks in the interest-on-interest case. The government of India took the responsibility to pay the amount to the banks for some cases. The green candles in the chart below give you a look at how the index has rallied up.

Bank Nifty 1-Day Chart

COVID-19 Vaccine

The news which we were waiting for days finally hit the market last evening. US pharmaceutical giant Pfizer and German biotech firm BioNTech announced that they have registered an amazing response from their coronavirus vaccine. In the ongoing Phase 3 trials, the vaccine given to the infected patients has been 90% effective. The company is also optimistic to supply 50 million vaccine doses globally by the end of this year. This is a huge development which has taken all the global markets to go upwards. The US election is done and dusted and we believe that this positive news can take the market to even higher points in the coming days.

The Indian Festive Season

The people of the nation are struggling with the virus but that is not stopping them from celebrating the big Indian festivals. Should they refrain a bit? That’s a completely different debate. There are several festivals which are celebrated from October to December. Navratri, Dussehra, Diwali, just to name a few. Even in these uncertain times, people are venturing out to buy new goods, and boosting the economy.

Whether it’s the auto market or the consumer goods market, all are seeing a surge in sales after an almost-dead first quarter. The market has responded well to this change. Also, there’s a possibility that a new stimulus can be launched by the Indian government in the coming weeks. Any effective help from the government will surely make the market participants happier.

IT and Pharma 

Two sectors which got all the investment in the pandemic were the IT and Pharma sector. In October, both the sectors rallied Nifty to touch the levels of 12,000 three times. Strong Q2 results from the IT sector were offering a lot of boosts. TCS and Wipro announced share buybacks which signaled the success of tech companies to operate during the pandemic.

One sector which can easily transform to the work-from-home culture was the IT sector. With the help of in-built or third-party cloud-based technology, employees easily accessed the data sets. This helped them to reduce their rent cost and other fixed costs. With vaccines only the hope which can bring an end to Covid-19, people invested heavily in the pharma sector. All the pharma stocks have given staggering returns during the 6 months. This excessive demand has also made a few of the stocks in this sector overvalued. Once the vaccine is out, will these stocks correct themselves and go down? Yesterday, Nifty IT and Nifty Pharma went 3.86% and 4.33% down respectively. Is it a signal of what to come? Is a major correction in these two sectors just ahead?

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Pfizer’s Covid-19 Vaccine 90% Effective in Phase 3 – Top Indian Market News

Covid-19 vaccine 90% effective in Phase-3 trial: Pfizer

Pfizer, the US-based pharmaceutical firm, has stated that its vaccine was 90% effective in preventing Covid-19 infections in ongoing Phase-3 trials. The vaccine candidate is jointly developed by Pfizer and BioNTech. Pfizer has also stated that it expects to supply up to 50 million vaccine doses globally in 2020.

Read more here.

RBI lifts restrictions on Equitas Small Finance Bank after listing of shares

Equitas Holdings Ltd. has stated that the Reserve Bank of India has lifted the restrictions that were imposed on Equitas Small Finance Bank (ESFB) in September 2019. RBI had restricted ESFB from opening new branches and froze the remuneration of its MD & CEO. The restrictions were removed after ESFB got listed on the stock exchanges earlier this month.

Read more here.

Balkrishna Industries Q2 Results: Net Profit rises 16% YoY to Rs 339 crore

Balkrishna Industries Ltd. reported a 16.7% year-on-year (YoY) increase in net profit to Rs 339.5 crore, for the quarter ended September (Q2). The company posted a 36% YoY increase in sales volume to 61,224 million tonnes, during the same period. The board has declared an interim dividend of Rs 4 per share.

Read more here.

Happiest Minds partners with AutonomIQ to create connected ecosystem

Happiest Minds Technologies has partnered with AutonomIQ, a cloud platform that uses AI and machine learning for testing solutions. The partnership will be aimed at accelerating the enterprise digital transformation journey using autonomous testing capabilities. The companies will also help to create pre-built solutions to help customers generate value in really short periods. 

Read more here.

L&T Finance Holdings gets approval to raise Rs 3,000 crore via rights issue

The Board of Directors of L&T Finance Holdings has approved a plan to raise Rs 3,000 crore through a rights issue. A rights issue is a method used by a company to raise additional capital, by offering more of its shares to the current shareholders. The company has stated that the details of the rights issue, including price and entitlement ratio, will be determined in due course.

Read more here.

Blue Star receives Rs 128 crore order from Wistron Infocomm

Blue Star, on Monday, announced that it has bagged a Rs 128 crore order from Wistron Infocomm. The order is to create a mechanical electrical and plumbing (MEP) structure for Wistron’s factory expansion project. Wistron Infocomm is a Taiwan-based contract manufacturer of electronic goods for companies such as Apple.

Read more here.

Board of Granules India approves incorporation of subsidiary in Hyderabad

The Board of Directors of Granules India has approved to incorporate a wholly-owned subsidiary of the company in Hyderabad. The company has plans to build a green field facility for its formulations business. The share price of Granules India Ltd. saw a rise of 4.24%, and closed at Rs 387 on the NSE today.

Read more here.

Jindal Saw Q2 Results: Net Profit falls 74% YoY to Rs 78 crore

Jindal Saw Ltd. reported a 74% year-on-year (YoY) decline in net profit to Rs 78.2 crore, for the quarter ended September (Q2). The company’s revenue declined by 11.5% YoY to Rs 2,374.32 crore, during the same period. Jindal Saw has stated that its sales have seen a sharp rebound, after the steel business was negatively impacted due to Covid-19.

Read more here.

Parag Milk Foods Q2 Results: Profit declines 44% YoY to Rs 16 crore

Parag Milk Foods Ltd. reported a 44.19% year-on-year (YoY) decline in profit after tax to Rs 15.9 crore, for the quarter ended September (Q2). Its revenue declined by 22.16% YoY to Rs 498.23 crore, during the same period. The company has stated that revenues had fallen due to a slowdown in its Hotel, Restaurants, and Catering segment.

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Lumax Industries Q2 Results: Net Profit falls 63% YoY to Rs 7 crore

Lumax Industries Ltd. reported a 63.99% year-on-year (YoY) decline in net profit to Rs 7.23 crore, for the quarter ended September (Q2). The company’s revenue declined by 7.39% YoY to Rs 397.35 crore, during the same period. Lumax is a leading manufacturer and supplier of automotive components and systems in India.

Read more here.

NLC India Q2 Results: Net Profit jumps 400% YoY to Rs 43 crore

NLC India Limited reported a 400% year-on-year (YoY) increase in net profit to Rs 43 crore, for the quarter ended September (Q2). The company’s revenue increased by 78% YoY to Rs 396 crore, during the same period. The board has declared an interim dividend of Rs 1.5 per share. NLC India is a Government-owned company in the fossil fuel mining sector.

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Finance Ministry Issues Guidelines to Implement Interest Waiver – Top Indian Market News

Finance Ministry issues guidelines to implement interest waiver on loans

Last week, the Supreme Court had asked Central Government to issue guidelines on implementing the waiver of interest on interest. Today, The Finance Ministry has issued operational guidelines on how to implement the interest waiver scheme on loans up to Rs 2 crore. The scheme can be availed by the borrowers in specified loan accounts for a period from March 1 to August 31, 2020. The waiver will also be applicable to those who had not utilized the RBI moratorium plan, and had continued with the repayment of loans.

Read more here.

Covid-19 vaccine to be available in India by June 2021: Biocon MD

Biocon Limited’s Chairperson and Managing Director, Kiran Mazumdar-Shaw, has stated that the vaccine for Covid-19 will be available in India by June 2021. The MD said that the clinical trials for the vaccine may be completed within the next 2-3 months. She further stated that the delivery of the vaccine to all Indians will be challenging.

Read more here.

Income Tax Return filing deadline extended till December 31

The last date for Income Tax Return (ITR) filing by individual taxpayers of the previous financial year (FY ’19-’20), has been extended till 31 December 2020. For those taxpayers whose accounts are yet to be audited, the deadline has been extended to January 31, 2021. The government has also extended the due date for filing GST Annual Return and Reconciliation Statement for FY19 (’18-’19) to 31 December 2020.

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Polycab India reports 14% YoY increase in net profit

Polycab India Limited on Saturday reported a 14.32% year-on-year (YoY) increase in consolidated net profit to Rs 221.6 crore, for the quarter ended September (Q2). The company’s revenue saw a fall of 6% YoY to Rs 2,113.68 crore during the same period. However, Polycab India has registered a 116.43% increase in revenue during Q2, as compared to the revenue during the previous quarter (Q1).

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Vedanta Ltd declares interim dividend of Rs 9.5 per share

The Board of Directors of Vedanta Limited on Saturday declared an interim dividend of Rs 9.5 per share. The record date for the dividend was set for October 31, 2020. The company has stated that the dividend payout will amount to Rs 3,500 crore. The voluntary delisting of Vedanta Ltd. from the stock exchanges had failed on 10th October.

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Tata Motors gets order for 6,413 vehicles from Andhra Pradesh Government 

Tata Motors has announced that it has secured an order of 6,413 vehicles from Andhra Pradesh State Civil Supplies Corporation. The Tata Gold Ace mini trucks will be used as mobile-dispensing units for the doorstep delivery of essential commodities in Andhra Pradesh. Tata Motors has also crossed the 40 lakh cumulative production milestone of its passenger vehicles.

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IL&FS misses debt resolution target by Rs 7,300 crore in September quarter

The Infrastructure Leasing and Financial Services (IL&FS) Group on Saturday said it has been able to address debt of only Rs 1,460 crore, during the July-September period (Q2). Due to the impact of Covid-19, the company has missed its target of addressing debt of Rs 8,800 crore. The group has stated that the shortfall of Rs 7,300 crore will be addressed in the third and fourth quarters of the current financial year.

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Persistent Systems Q2 Results: 18.5% YoY increase in net profit

Persistent Systems Limited has reported an 18.5% year-on-year (YoY) increase in net profit at Rs 101.99 crore, for the quarter ended September (Q2). The company’s revenue from sales saw an increase of 13.92% at Rs 1,007.75 crore, during the same period. The operating profit was up by 54.68% at Rs 122.43 crore.

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Nestle India reports 1.37% YoY fall in net profit

Nestle India reported a 1.37% year-on-year (YoY) fall in net profit at Rs 587.09 crore, for Q3 CY21 (same as Q2 FY21 in India). The revenue of the company increased by 10% YoY to Rs 3,541.70 crore, during the same period. Nestle India has declared an interim dividend of Rs 135 per share. The company has also announced plans to invest Rs 2,600 crore over the next 3-4 years, in order to improve its manufacturing capacity in India.

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JK Cement inaugurates grey cement grinding unit in Gujarat

JK Cement on Saturday inaugurated its new grey cement grinding unit at Balasinor in Gujarat. The new unit has a manufacturing capacity of 0.7 Million Tonnes Per Annum (MTPA). The plant has been constructed over an area of 8 hectares, at a total cost of Rs 200 crore.

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Daily Market Feed

COVID-19 Vaccine unveiled – Share Market Today

COVID-19
  • Nifty had a gap-up opening today, starting the day at 11,325 and touching a day-high of 11,372 soon after. However, the index corrected over the day, and closed at 11,324, up 0.58%. Nifty struggled to close above 11,350, and is yet to give a technically strong buy signal for the week.

  • But keeping aside technical indications, global markets are definitely going to be delighted by the news of the world’s first COVID-19 vaccine from Russia.

  • Nifty Pharma tumbled by 1.42%, due to the negative sentiment of Lupin moving manufacturing to the US after Trump’s ‘Buy American’ order. However, analysts have said that the move would not hurt the industry that much. Lupin traded flat the entire day while the general Pharma index fell.

  • Nifty Bank shot up by 1.49% to close the day at 22,227 levels. As was mentioned in our morning news feed, Nifty Bank was near a major resistance level and managed to break it. All major banks would have given you easy returns if traded in today. Banks can certainly be watched going forward, as they are building up bullish momentum.

  • European markets are all up by more than 2% at the time of market close. Asian markets are mostly trading in green.

News Picks

  • In a major move, Russia has officially registered the world’s first vaccine against COVID-19. President of Russia, Vladimir Putin, announced that the country is preparing for mass-production. Clinical trials have so far revealed good results, and even Putin’s daughter is said to have been vaccinated. This is great news not just for the market, but also for the entire world population as countries are still struggling to contain the pandemic.

  • Shares of Zee Entertainment Enterprises Ltd (ZEEL) jumped 5.16% to close at Rs 159, once again emerging as Nifty’s top gainer for the day. This goes on to show that sudden dips in share prices of fundamentally strong companies are a buying opportunity and not a cause for panic!

  • Shares of Interglobe Aviation, parent company of Indigo Airlines had a gap-up opening and traders quickly booked profits. This came after company said it will raise up to Rs 4,000 crore through a qualified institutional placement (QIP). Shares closed at Rs 939.55, down 1.43%.

  • Shares of HDFC closed at Rs 1,829, up 1.67% after the company successfully completed its fund raising of Rs 14,000 crores via QIPs, NCDs and Warrants. Financial sector companies in the country and around the world have been successfully raising funds to safeguard themselves from the possibility of bad loans due to the pandemic.

  • Affle India closed at Rs 2,160, up 6.59% today. The share had jumped by 10% yesterday as well. The movement is due to the unexpected Q1 results posted by the company on Friday.

  • Titan closed the day at Rs 1,068, down 3.57% after announcement of poor Q1 results. The company reported a standalone net loss of Rs 270 crore in the quarter ended June against a profit of Rs 371 crore a year ago.

  • Bank of Baroda traded down 2.78% to close at Rs 47.20 after reporting losses for the quarter ended June 30.

  • Yes Bank closed another day at its 5% upper circuit level, taking the price to Rs 15.50. Currently, the combined stake for SBI Group in Yes Bank stands at 34.70%. The US-based investor Bay Tree holds 7.5% while LIC is the third largest institutional shareholder with 5% stake.

Markets Ahead

Banks and other financial entities being able to raise funds easily and efficiently show that institutional investors still believe in the industry. If the raised funds prove enough for the banks to safeguard against the expected increase in bad loans, then it is great news. The positive news of Russia’s COVID-19 vaccine may also influence markets in the coming days. International distribution policy is yet to be known and effectiveness is yet to be confirmed by The World Health Organisation. Is this the light at the end of the tunnel? Can we say millions of lives around the world, and bring back normalcy to our lives? We certainly hope so.

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Daily Market Feed

Oxford University COVID 19 Vaccine Hopes – Share Market Today

News Shots

  • The first set of results from early-stage clinical trials of Oxford University Covid 19 vaccine has shown that the vaccine is safe and induces an immune reaction. Indian vaccine manufacturer Serum Institute, which has a manufacturing agreement with British pharma giant AstraZeneca, announced that it would seek regulatory approvals to manufacture the vaccine in bulk in India.
  • AGR Case: The Supreme Court to announce the AGR repayment timeline by next hearing on August 10. Vodafone Idea had paid Rs 1000 crores to Department of Telecommunication before the hearing and expects 15 years to make the remaining in payment in instalments. The court also expressed doubt over Vodafone Idea’s capacity to clear the dues, asking on how to “rely” on the company for payment over a period given its financial position. 
  • Reliance Jio has sought spectrum in certain frequencies from the Department of Telecom for holding trials of the latest 5G technology. The company’s wholly-owned US-based subsidiary Radisys has already started selling some of the 5G solutions to foreign companies.
  • Jubilant Life Sciences has received drug regulator DCGI approval for generic version of antiviral drug remdesivir 100 mg/vial for restricted emergency use in India for treatment of severe COVID-19. Also, Mr Rakesh Jhunjhujnwala has increased his stake in Jubilant Life Sciences by 0.70%.
  • ACC Cements reported a 40 per cent fall in consolidated net profit at Rs 270.95 crore during the June quarter of financial year 2021 as against Rs 455 crore in the same period last year, on the back of subdued demand for cement as the construction sector is hit by the nationwide lockdown.
  • SBI Card posted 13.80 per cent year-on-year (YoY) rise in net profit at Rs 393.29 crore for the quarter ended June 30. It had posted a net profit of Rs 345.59 crore in the corresponding quarter last year.
  • Dabur has filed a case in the Delhi High Court alleging that its Mumbai rival Marico’s Saffola Honey “imitated” the bottle, trade-dress, label and packaging of Dabur’s honey.
  • Tata Power’s arm CGPL – which runs Mundra power plant – has raised Rs 350 crore by issuing non-convertible debentures (NCDs) on private placement basis.
  • Britannia Industries will invest over Rs 700 crore to open five new manufacturing units in the next two-and-a-half years to meet the growing demand in different parts of India, its MD Varun Berry said on Monday.
  • Q1 Result Announcements Today:
    • Hindustan Unilever (HUL)
    • Axis Bank
    • Bajaj Finance
    • ICICI Prudential Life
    • Bajaj Finserv
    • Crisil
    • DCM Shriram
    • IndiaMART InterMESH
    • Syngene International

What to expect today?

  • Yesterday was a day with the least movement in NIFTY in the last 3 months. NIFTY traded in a very small range of just 80 points (10,950 – 11,030). So, 11,000 did act as a resistance but there was a rally before closing (thanks to IT led by INFY) and NIFTY closed strongly near 11,030.
  • Global markets are on a high. US, European and Asian markets are mostly up, NASDAQ reaching all time high. SGX NIFTY is currently trading very high at 11,130, indicating a huge gap up opening in the Indian Market!
  • NIFTY is likely to trade between 11,000 and 11,200 today. There is support at 10,970 and 10,930, and resistance at 11,050 and 11,090.
  • Highest Call Open Interest at 11,500, followed by 11,000. Highest Put Open Interest at 10,500, followed by 10,800. 
  • Foreign institutional investors (FIIs) bought shares worth Rs 1,709.97 crore, while domestic institutional investors (DIIs) sold shares worth Rs 1,521.99 crore.
  • Banks, as conveyed yesterday, started well but ended on a low. They could still be under watch.
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Daily Market Feed

COVID 19 Vaccine Expectations Strengthen – Share Market Today

News Shots

  • There are official statements from Russia which says they will make the COVID 19 vaccine available to the public next month. 
  • Zydus Cadila’s Chairman Pankaj Patel announced that they aim to complete late-stage trials for its coronavirus vaccine candidate ‘ZyCov-D’ by March 2021. Cadila will start production of 100 million doses of potential Covid19 vaccine annually after Phase 3 trial concludes successfully.
  • Telecom AGR Supreme Court hearing today. Focus on Vodafone Idea and Bharti Airtel.
  • There has been an allegation filed against Glenmark for false claims and high prices of FabiFlu, its Fabipiravir drug, for treating patients with mild to moderate COVID-19.
  • HCL Tech, M&M Finance, Britannia, Granules, ICICI Lombard, HDFC Bank have come up with exceptional Q1 Results.
  • Hindustan Unilever Limited said it has temporarily closed down its Haridwar plant, where several of its employees have been tested positive for COVID-19.
  • Canara Bank to raise up to Rs 5,000 crore equity capital through various modes in the current fiscal year to boost its capital adequacy ratio in view of expansion plans, and will seek nod from shareholders for the same in its AGM next month.
  • Ashok Leyland on Saturday said former Aston Martin CEO Andrew Palmer has been appointed as non-executive chairman of its British arm Optare Plc.
  • Radhakishan Damani-owned Bright Star Investments cut stake in BlueDart Logistics to 3.11% in June quarter from 3.35% in March quarter.

What to expect today?

  • Last week, NIFTY was highly volatile and moved mostly between 10,600 and 10,880. But we saw a sudden surge on Friday afternoon and NIFTY broke its 200 DMA resistance at 10,880-10,890 levels and moved up and over 10,900. This was achieved with the help of sudden movements in Reliance and HDFC Bank.
  • Surprisingly, global sentiments look a bit weak. US, European and Asian markets are mostly down. SGX NIFTY is currently trading lower at 10,918, indicating a near flat opening in the Indian Market. 
  • Today is decisive as to where NIFTY will be headed in the coming days. NIFTY is likely to trade between 10,800 and 11,000 today, any movement beyond these have to be watched. There is support at 10,880 and 10,830, and resistance at 10,970 and 11,050.
  • Highest Call Open Interest at 11,000, followed by 10,800. Highest Put Open Interest at 10,500, followed by 10,600. 
  • Foreign institutional investors (FIIs) bought shares worth Rs 697.08 crore, while domestic institutional investors (DIIs) sold shares worth Rs 209.42 crore, on Friday.
  • As conveyed, Bank Nifty has been underperforming. If banks cover that and move up, it can take NIFTY also up. Banks can be large movers this week, also given that multiple bank results are also to be released soon.