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Sensex Down 513 Points; Banking and Auto Stocks Witness Huge Selling
Tue, 14 Jul 12:30 pm

Share markets in India have extended early losses and are presently trading deep in the red.

The BSE Sensex is trading down by 513 points, at 36,200 levels.

Meanwhile, the NSE Nifty is trading down by 150 points.

The BSE Mid Cap index is trading down by 1%. The BSE Small Cap index is trading down by 1.1%.

All sectoral indices are trading in red with stocks in the banking sector and auto sector witnessing most of the selling pressure.

The rupee is trading at 75.41 against the US$.

Speaking of the current stock market scenario, the last few months have witnessed the kind of shifts that most investors would recall as once in a lifetime.

The Sensex has risen up from the lows seen in March 2020 when it had declined by over 20%.

What's Driving the Markets?


So, what's driving the markets? An important driver of this rally is the inflow from global funds, now that the global economies have opened the liquidity tap.

Investors and traders who are new to stock markets have had a superb experience over past three months as almost any and every stock has given them phenomenal returns.

The problem is that this experience may not be lasting unless investors now take a careful look at their portfolio and literally sanitize them to get rid of the unwanted elements.

In his latest video, Rahul Shah talks about a very effective technique for zeroing in on the right penny stock.

He also shares how can one go about implementing the same.

Tune in to find out more...

Housing Development Finance Corporation is among the top buzzing stocks today.

HDFC in a regulatory informed that it is considering to raise up to Rs 450 billion by issuing debt securities, and will seek approval of shareholders in its upcoming AGM later this month.

The company also said the board of directors of HDFC Ltd will meet on July 30 to announce the quarterly results for the first quarter ended June of the current fiscal. The 43rd annual general meeting (AGM) of the corporation is scheduled to be held later on the same day.

Coal India share price is also in focus today as the company's dues from state-owned power generation companies have risen to Rs 220 billion amid muted demand and high production. The outstanding amount was around Rs 120 billion in January.

In news from the IPO space, Rossari Biotech's initial public offering (IPO) attracted bids for 60% of shares on the block yesterday - its day 1 of the bidding process.

As per the data, by 5 pm yesterday, the issue by specialty chemicals company had received bids for 49,30,030 shares, which was 60% of the issue size of 81,73,530 shares.

On Friday, the company raised Rs 1,488.7 million from anchor investors, who included top three fund houses - SBI Mutual Fund, HDFC Mutual Fund and ICICI Prudential Mutual Fund.

In the Rs 5 billion IPO, Rossari Biotech has fixed a price band of Rs 423-425 per equity share and the issue will remain open till July 15th.

Rossari Biotech's IPO comprises fresh issuance of shares worth Rs 500 million and sale of 1,05,00,000 equity shares by company's promoters through offer-for-sale route. Post the IPO, the promoter shareholding will fall to 73% from 95% earlier.

Investors can bid in lot sizes of 35 shares. The equity shares will be listed on the NSE and BSE.

The net proceeds from the IPO will be utilised for funding working capital requirements, repaying certain debt availed by the company and for general corporate purposes.

Rossari Biotech is a specialty chemicals manufacturing firm with focus on home and personal care, performance chemicals, textile specialty chemicals and animal health and nutrition products.

Early in March this year, Rossari had postponed its IPO plans due to the extreme volatility in the market due to the Covid-19 pandemic.

How the above IPO sails through remains to be seen. Stay tuned for more updates from this space.

Moving on to the news from pharma sector, Glenmark Pharmaceuticals has announced that it has commenced a Post Marketing Surveillance (PMS) study on FabiFlu to closely monitor the efficacy and safety of the drug in 1,000 patients that are prescribed with the oral antiviral, as part of an open-label, multicenter, single-arm study.

Glenmark Pharmaceuticals had last month launched antiviral drug favipiravir, under the brand name FabiFlu, for the treatment of cases of mild to moderate Covid-19.

Reportedly, FabiFlu, the first oral favipiravir approved medication in India for the treatment of the coronavirus disease, will be available as a 200mg tablet at a maximum retail price (MRP) of Rs 3,500 for a strip of 34 tablets.

The Drug Controller General of India (DCGI) granted Glenmark Pharma the permission to manufacture and market favipiravir for restricted emergency use in mild to moderate cases.

Favipiravir, which has been approved in Japan since 2014 for the treatment of novel or re-emerging influenza virus infections, has shown clinical improvement of up to 88% in mild to moderate Covid-19 cases, the company stated.

Glenmark had announced in May that it is conducting another clinical trial to evaluate the efficacy of two antivirals favipiravir and umifenovir as a combination therapy in moderate hospitalised adult Covid-19 patients in India.

How the above development pan out remains to be seen. We will keep you updated on all the news from this space.

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary


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