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Market Round-up :
Sensex opens 200 points higher, Nifty above 11,950; financials gain.
President Donald Trump’s executive order restricting entry of skilled foreign workers into the US, mainly on H-1B and L1 visas, has resulted in an estimated loss of USD 100 billion to companies here, a top American think-tank claimed. The executive order signed by Trump on June 22, which had temporarily banned issuing fresh H-1B and L-1 visas till December 31, caused a negative impact to the valuation of Fortune 500 firms equivalent to over USD 100 billion in losses, Brookings Institute said in a report released this week. The H-1B visa, most sought-after among Indian IT professionals, is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise. L-1 visa is for internal company transfers.
The Indian I.T Companies may be impacted by this move by USA.
USFDA approves first COVID-19 drug: the antiviral remdesivir
The US Food and Drug Administration has approved the first drug to treat COVID-19: remdesivir, an antiviral medicine given through an IV for patients needing hospitalization. The drug, which California-based Gilead Sciences Inc. is calling Veklury cut the time to recovery by five days from 15 days to 10 on average in a large study led by the US National Institutes of Health.
It had been authorized for use on an emergency basis since spring, and now has become the first drug to win full US approval for treating COVID-19. Gilead says Veklury is approved for people at least 12 years old and weighing at least 40 kilograms who need hospitalization for their coronavirus infection. It works by inhibiting a substance the virus uses to make copies of itself.
This development may pave way for many of the countries including India, to recover from the epidemic and the economic impact of the virus. The Indian Pharma companies may take the cue and go in for a massive expansion and into this type of drug manufacturing and get benefitted.
Indian indices opened higher on Friday led by financials and IT stocks as gains in Asian peers supported the benchmarks. At 9:18 am, the Sensex was trading 211 points higher at 40,796 while the Nifty rose 61 points to 11,958. Broader markets were also in the green with both the midcap and smallcap indices up over half a percent each. All sectors were also positive at opening with Nifty Bank and Nifty Metal leading, up 0.9 percent and 0.8 percent, respectively. Nifty IT and Nifty Auto were also up 0.6 percent and 0.4 percent in early deals. Tata Steel, Cipla, ICICI Bank, Dr Reddy’s and Infosys were the top gainers on the Nifty50 index while GAIL, Shree Cement, HUL and Bajaj Auto led the losses.
The markets continue to remain within the range. We are in expiry week and a one-way move of the Nifty cannot be ruled out. What needs to be seen is whether the markets are successful in getting past 12,050 and moving towards 12,300 or it manages to break 11,650 and slides downward to 11,450. We should witness a convincing move in the coming week.
The Indian rupee opened lower by 11 paise at 73.64 per dollar against the previous close of 73.53. On October 22 domestic currency ended marginally higher at 73.53 per dollar versus the previous close of 73.58.
Earnings Impact: Shares of SBI Cards decline over 10% on Q2 results
Shares of SBI Cards and Payment Services declined over 10 percent on Friday after reporting deterioration in asset quality in the September quarter. Shares of SBI Cards and Payment Services declined over 10 percent on Friday after reporting deterioration in asset quality in the September quarter. The firm’s gross non-performing assets (NPAs) increased 196 bps to 4.3 percent in Q2FY21, compared to 2.33 percent in Q2FY20. The stock fell as much as 10.6 percent to the day’s low of Rs 762.70 per share on BSE.
After a long consolidation of last 18 trading sessions, Ashok Leyland has given a decisive breakout beyond Rs 78-70 zone. We have seen significant open interest (OI) of around 50 percent in the entire series which clearly indicates that stock is now having potential to move by further 10-12 percent going forward. So Brokerages are recommending to buy on Ashok Leyland with stop loss of Rs 76 and here we are having the target towards Rs 86 level.”
“Havells has been making higher tops and higher bottom formation on the weekly and the daily chart. Every small decline is being bought and stock has seen the built up of long position followed by short covering. So Brokerages are recommending to buy with stop loss of Rs 710 for the upside target towards Rs 750.”
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