Indian shares closed at a three-month high on Monday as domestic regulatory approvals to manufacture COVID-19 drugs lifted pharmaceutical stocks, outweighing the impact of a surge in domestic as well as global coronavirus cases over the weekend.
The NSE Nifty 50 index, which has recovered ground after taking a hit from worries about a violent border clash with China last week, ended up 0.65{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} at 10,311, its highest since March 11.
Indian and Chinese military commanders held a second round of talks to ease the tensions, with many Indians calling on the government to deliver a military and economic riposte to China following the worst clash in over five decades.
“The risk appetite has come back to the table along with foreign institutional buying … The cheer from pharma companies over drugs has also helped,” said Neeraj Dewan, director at Quantum Securities in New Delhi
“Whenever there is a gush of liquidity in global markets, emerging markets get their share. The major risk hanging over markets is once the pent-up demand from opening up of economies is exhausted, further pick up in demand is going to be challenging,” he added.
The Nifty Pharma index ended up 2.2{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58}, while the bank index rose 1.74{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58}.
Shares of Cipla Ltd ended up 3.2{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} after India’s drug regulator gave the green light for the manufacture and sale of their generic version of Gilead Sciences Inc’s experimental COVID-19 treatment remdesivir.
Shares of Glenmark Pharmaceuticals Ltd spiked 27{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} after the drugmaker received Indian regulatory approval on Friday to make and sell oral antiviral drug favipiravir for treating mild-to-moderate COVID-19 infections in the country.
India’s total COVID-19 cases stand at 425,282 with 13,699 deaths, the health ministry said.
Bajaj Auto Ltd ended up 7.1{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} and was the top gainer in Nifty 50 index.
The benchmark S&P BSE Sensex rose 0.52{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} to 34,911.32.
Meanwhile, the threat of rising coronavirus infections in parts of Europe and the United States kept global markets subdued.
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