Gold Silver Reports (GSR) – Dr. Reddy’s Lab Gains After FDA Inspection Concludes – Shares of the drugmaker rose as much as 3.8 percent to Rs 2,013.85. The U.S drug regulator concluded inspection at the pharmaceutical company’s Srikakulam Plant with no observations.
The stock was the best performer on Nifty. Dr. Reddy’s Lab trades at 35.1 times trailing 12-month earnings per share and 22 times its estimates for the coming year, according to Bloomberg data.
Sensex, Nifty Open Higher – Indian equity benchmarks open higher, following its Asian peers after U.S. jobs data bolstered optimism in the world’s largest economy. The S&P BSE Sensex Index rose as much as 0.9 percent o 35,555.59, while the NSE Nifty 50 Index rose as much as 0.7 percent to 10,770.
The market breadth was tilted in favour of buyers.
Eight out of 11 sectoral gauges compiled by NSE advanced, led by NSE Nifty Bank Index’s 0.7 percent gain. On the flipside, NSE Nifty PSU Bank Index was the top sectoral loser, down 0.3 percent.
RBI Commentary In Focus This Week
Investors in both bonds and rupee this week will be focusing on the Reserve Bank of India’s interest rate decision and accompanying commentary.
The RBI will probably keep benchmark repurchase rate unchanged at 6 percent at its June 6 policy decision, according to 22 of 29 economists in a Bloomberg News survey; seven, though, expect an increase of 25 basis points. That rise in expected amid rising inflationary pressures and signs that growth is picking up.
The yield on benchmark 10-year bonds rose five bps last week to end 7.85 percent after faster economic growth data for the fourth quarter stoked speculation the central bank could raise rates this week.
Meanwhile, the implied forwards suggest the rupee will start trading around 66.93 per dollar, having gained over 1 percent against the dollar last week. The dollar pulled back overseas after completing its seventh week of gains with attention turning to the pace of Fed rate hikes.
