In the previous two Mondays, investors were greeted with heavy losses by the market because of emerging bad news around COVID-19 and related restrictions over the weekend.
In addition to that, the likelihood of more selling in the US market due to proposed capital gains tax hike by the Biden administration also forced investors to not carry forward their long bets.
For the day, Nifty50 ended 0.5 per cent, or 64.8 points, lower at 14,351.35, while Sensex closed at 47,878.45, down 202 points or 0.4 per cent.
Here are the major movers in today’s market:
Cadila Health surges on new COVID drug
Shares of the Ahmedabad-based drugmaker rose over 4 per cent after the company received the Indian drug regulator’s nod for its COVID-19 treatment drug, which has shown ability to significantly reduce the infection time in the body and the need for oxygen support. The drug has been given an emergency use approval in moderate COVID-19 cases in the country.
Dr Reddy’s sees profit booking
Shares of the drugmaker saw some profit taking as they fell around 3 per cent after stellar gains seen earlier in the week. The drugmaker has gained on the perception that the deployment of Sputnik V vaccine in the country will boost its earnings.
Nazara Tech jumps on strong earnings
Shares of Nazara Technologies rose over 5 per cent after the company reported strong earnings growth for the financial year ended March. The company’s revenues rose 84 per cent in the year. The growth was led by its ‘gamified learning’ and e-games segments which registered over 800 per cent and 100 per cent growth in sales, respectively.
Nearly 190 stocks hit 52-week highs
While the sentiment on the Street was muted, individual stocks in the market continued to do well as 187 stocks hit their new 52-week highs during the session, reflecting the inherent strength of the overall market despite COVID related concerns.
What gave buy signal?
As many as 72 stocks listed on the National Stock Exchange gave buy signals based on MACD. Names include Motherson Sumi, Reliance Industries, PVR, Maruti Suzuki India, and Inox Leisure.
What’s ahead for the market?
Traders sold both the out-of-money call and put options of Nifty50 today reflecting their indecisiveness about the market’s direction next week. In the futures segment, traders unwound their long positions in April contract of the index as Open Interest fell 1.4 per cent.
“We maintain our cautious stance for the market in the near term as increasing restriction would adversely impact economic activity and earnings,” said Ajit Mishra, vice president of research at Religare Broking.
