Japan’s factory output shrank for the third straight month in September as the auto sector was hit by persistent global supply shortages, raising the risk of an economic contraction in the third quarter and putting the recovery in doubt.
The Hang Seng is down 0.6%, while the Shanghai Composite is trading on a flat note. Nikkei is trading with a gain of 0.4 percent.
In US stock markets, Wall Street indices closed higher on Thursday, with the S&P 500 and Nasdaq hitting record closing levels thanks to gains in Apple and Amazon, while solid results from companies including Caterpillar and Merck. helped ease concerns about profits slowing economic growth.
The Dow Jones Industrial Average closed up 240 points while the Nasdaq Composite rose 212 points, or 1.4%.
Back home, Indian stock markets are currently trading marginally lower.
Benchmark indices have recovered from the day’s lows but are still trading in the red as energy stocks remain under pressure.
BSE Sensex is trading with a fall of 271 points. Meanwhile, NSE Nifty is trading with a decline of 67 points.
In intraday trade, the Sensex fell over 800 points to 59,104, while the Nifty fell to a low of 17,613.
IRCTC shares fell by 25% after the railway minister asked the company to share 50% of the convenience fee on train tickets with the ministry.
Tata Steel and ITC are among the top gainers today. On the other hand, HDFC is the biggest loser today.
Both BSE Mid Cap Index and BSE Small Cap Index are trading on a flat note.
Buying interest is visible in the sectoral index with the metal sector and realty sector stocks.
Energy shares, on the other hand, are trading in the red.
Shares of Bajaj Holdings and Minda Corporation today hit a 52-week high.
Rupee is trading at 74.79 against US Dollar.
Gold prices are trading lower by 0.3% ₹47,821 per 10 grams.
Meanwhile, silver is trading with a fall of 0.5%. ₹64,601 per kg.
In the news of pharma sector, Natco Pharma and Hetero have sought marketing authorization from the drug regulator for their anti-COVID drug Molnupiravir.
The Hyderabad-based company has conducted Phase III trials of Molnupiravir and submitted the test results to the drug regulator this month.
Reportedly, the Subject Expert Committee (SEC) under the drug regulator may consider their applications soon.
Hetero has also completed Phase-III clinical trials on 1,218 mild Covid-19 patients and applied for Emergency Use Authorization (EUA) to assess the efficacy and safety of this drug.
During its trials, the company found fewer hospital admissions in the molunpiravir group than in standard care alone.
The drug was initially developed by US-based Ridgeback Biotherapeutics, which later partnered with Merck & Co. for further development.
Molnupiravir is a novel oral treatment for individuals suffering from COVID-19 infection. The experimental antiviral drug is also being evaluated by the USFDA for its effectiveness and safety.
In India, Merck & Company has signed voluntary licensing agreements with Cipla, Dr Reddy’s Lab, Emcure Pharmaceuticals, Hetero Labs and Sun Pharma to allow the manufacturing and marketing of the drug in India.
Natco has not entered into a licensing agreement with Merck.
Shares of Natco Pharma are trading with a decline of 0.6%.
To know more, see Natco Pharma 2020-21 Annual Report Analysis.
Moving from the power sector to the news, NTPC on Thursday reported 8.4% year-on-year (YoY) decline in its net profit ₹32.1 billion for the quarter ended September.
This was less than the market expectation.
The company’s profits were impacted by an increase in costs, a decrease in other income and an increase in tax expense during the reported quarter.
India’s largest power producer registers 14.75 year growth in revenue ₹283.3 billion.
Revenue growth during the quarter was helped by a rise in electricity demand, driven by a rapid reopening of the economy after a second wave and rising vaccination rates.
NTPC’s other income declines 30% y-o-y ₹9.4 billion. Meanwhile, tax spending climbed 89 percent year over year ₹9.6 billion.
NTPC tops during the quarter ₹166.4 billion on fuel for its power plants compared to ₹130.4 billion in the year-ago quarter.
The cost buoyancy was mainly on account of higher coal prices during the quarter in view of the ongoing shortfall.
NTPC It increased its consolidated installed capacity by 3,990 MW during the first half of this year to 66,900 MW from 62,910 MW in the quarter. Of this, it commissioned 3,830 MW of thermal power capacity and closed its 460 MW thermal plant at Talcher.
The shortage of coal which is seen across the country pushed the company to coal from its mines. The company produced 2.02 million metric tonnes (MMT) more coal in the quarter, compared to 0.77 MMT last year. Coal production was higher by 0.33 MMT on a quarterly basis.
NTPC shares are currently trading with a decline of 1.4%.
Coming to the power sector, it is interesting to note that the electricity exchange in India accounts for about 4.5% of the total electricity generation, as can be seen in the chart below.
see full image
According to Tanushree Banerjee, co-head of research at Equitymaster, India’s power sector is currently in transition. This is driven by an increasing reliance on short-term contracts and power spot markets.
This transition to the short-term market is due to the dynamics of the rapidly evolving industry.
Tanushree believes that the Indian power sector will see an increase in the quantum of spot power due to certain factors.
This article is syndicated from equitymaster.com
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!
.