Tag: new coronavirus variant

Omicron scare: Is it a good time to add diagnostics stocks to your portfolio?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Diagnostics stocks are in demand once again on Dalal Street, as benchmark indices attempt to recover from Friday’s sell-off following the news of the new COVID-19 variant, Omicron.

Bright prospects for diagnostics and healthcare businesses amid the pandemic have boosted stocks of companies like Dr Lal PathLabs, Metropolis Healthcare and Apollo Hospitals in the recent past.

Among diagnostics companies, Dr Lal PathLabs shares have rewarded investors with a return of 65 percent in the past 12 months. Thyrocare has risen 46 percent. Hospital stocks Max and Apollo have increased 197 percent and 148 percent in value respectively during the period.

The returned focus on diagnostics on Dalal Street comes at a time when the investor focus is seemingly shifting to pharma and healthcare as the market reacts to the emergence of the Omicron variant of COVID-19.

Headline indices hit a correction last seek amid a global sell-off triggered by the news of the detection of Omicron. Until then, both Sensex and Nifty50 indices had scaled a series of record highs over the past few months in a liquidity-driven run, with investors overlooking warnings on expensive valuations by foreign brokerages.

In an exclusive interview to CNBC-TV18, market guru Mark Mobius said investors are reacting to the news of Omicron when not many know about the new variant. He expects volatility in the market to ease as more is known about the Omicron.

He believes pharmaceutical and diagnostic stocks tend to perform better in such times. Mobius Capital would add pharma, diagnostic and technology stocks in such markets, said Founder Mobius.

Centrum Broking has initiated coverage on the country’s diagnostics industry, with a ‘buy’ call each on Dr Lal PathLabs, Metropolis and Vijaya Diagnostics.

Among the recent debutants on Dalal Street, Vijaya Diagnostics shares are up 5.5 percent since a sanguine listing compared to their issue price of Rs 531.

The brokerage sees a massive opportunity in the industry, and expects consolidation to help sustain the high growth momentum for organised chains.

“We anticipate a faster shift to organised providers, given the quality setup, faster report turnaround, complex test availability and better customer experience. With their pan-India network, organised players also benefit from economies of scale and are able to provide better illness management for patients and better diagnosis for doctors,” Centrum said in a report.

The coronavirus pandemic, according to Centrum, has led to a major push to wellness and overall healthcare penetration in India. Companies with wider networks are using asset-light models, third-party centres and home collection services to expand faster, it said.

Many stocks among the COVID beneficiaries have corrected from recent peaks and look attractive now from a long-term perspective, AK Prabhakar, Head of Research at IDBI Capital, told CNBCTV18.com.

Prabhakar has KIMS, Cipla, Cadila, Gland, Metropolis and Max Healthcare among his top picks now.

Most analysts believe the correction in the overall market after the strong rally since the COVID lows is healthy given the elevated levels of valuations.

Despite the recent dip, the Nifty50 benchmark is up more than 32 percent in the past one year. NSE’s healthcare and pharma indices have risen 25 percent and 16 percent respectively.

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Japan bans entry of foreign visitors as omicron spreads

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As cases of a new coronavirus variant are confirmed around the world, Japan announced Monday that it will suspend entry of all foreign visitors, joining an increasing number of countries that are tightening their borders as fear spreads of yet another extension of pandemic suffering.

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Stock Market Highlights: Sensex ends 153 points higher, Nifty50 reclaims 17,050 as market rebounds; Paytm shares drop 3%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Stock Market Highlights: Indian equity benchmarks Sensex and Nifty50 ended a choppy session higher on Monday, rebounding after their worst single-day plunge on Friday following the news of a new COVID variant, Omicron. Gains in IT, oil & gas and select financial counters were offset by losses in consumer and pharmaceutical names. Broader markets tumbled with the Nifty Midcap 100 index ending 1.4 percent lower. Its smallcap counterpart settled 2.6 percent lower. Paytm parent One97 Communications’ shares failed to hold on to intraday gains, ending with a cut of 2.6 percent.

Catch highlights of the November 29 session, and more, here:

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

South Africa returnees to quarantine on arrival in Mumbai amid Omicron COVID variant concerns: Mayor

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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All travellers from South Africa arriving in Mumbai need to quarantine and their samples will be sent for genome sequencing, the city’s mayor Kishori Pednekar said on Saturday amid concerns of new COVID-19 variant Omicron.

“Every person returning from South Africa will be quarantined on arrival in Mumbai and their samples will be sent for genome sequencing,” Pednekar was quoted as saying by news agency ANI.

The Brihanmumbai Municipal Corporation (BMC) has also called a meeting of senior officials at 5:30 pm for further discussion on the COVID variant, ANI reported.

The move comes as the new B.1.1.529 variant was first detected in South Africa. The World Health Organization (WHO) has named the new strain ‘Omicron’ and classified it as a highly transmissible virus of concern.

Prime Minister Narendra Modi too is holding a meeting with top officials to review the COVID-19 situation and status of the vaccination drive in India. The meeting is being attended by Cabinet Secretary Rajiv Gauba, Principal Secretary to the Prime Minister, P K Mishra, Union Health Secretary Rajesh Bhushan and NITI Aayog member (health) Dr V K Paul among others.

Earlier on Friday, WHO had cautioned countries against hastily imposing travel restrictions linked to the new COVID-19 variant, saying they should take a “risk-based and scientific approach”.

In India, according to norms set by the Union Health Ministry passengers coming from ‘at-risk’ countries need to submit their samples at the airport for RT-PCR testing. The countries in Europe, including the United Kingdom, and South Africa, Brazil, Bangladesh, Botswana, China, Mauritius, New Zealand, Zimbabwe, Singapore, Hong Kong and Israel have been put in the “at-risk” category.

Also Read: New COVID variant Omicron triggers global alarm, market sell-off

Meanwhile, all states and union territories have been told to conduct rigorous screening and testing of all international travellers coming from or transiting through South Africa, Hong Kong and Botswana.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Closing Bell: Black Friday for market as Sensex plunges 1680 points on COVID fears; Nifty falls 500 points

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian share markets suffered the biggest single-day losses since early April, as benchmarks fell over 3 percent, tracking a wider sell-off in global markets amid concerns that the new coronavirus variant will derail the global economic recovery. However, Nifty Pharma outperformed the benchmarks, as the investors shifted focus to healthcare and pharma companies.

The 30-scrip Sensex closed at 57,100, plunging over 1687 points and the Nifty50 index slumped over 510 points to 17,026. The broader markets underperformed as both mid-caps and small-caps slumped 3.2 percent and 2.8 percent, respectively. BSE companies erased market cap worth Rs 7 lakh crore Friday.

The markets recorded the biggest fall in seven months. And during the session, Nifty and Sensex both plunged 8 percent from the record highs they hit last month. Meanwhile, volatility index VIX surged 24 percent to a six-month high, pointing to high volatility in the market. Market breadth remained in the favour of declines, with one stock rising for every four that declined.

Among the 50 stocks on Nifty, Cipla, Dr Reddy, Divi’s Lab, Asian Paints, and Nestle lead the gains. While Cipla closed over 7 percent higher, Asian Paints and Nestle India closed 0.01 percent higher. Leading the losses were JSW Steel, Hindalco, Tata Motors, BPCL, and Asian Paints.

Among sectors on NSE, Nifty Bank plunged over 13 percent from the record high hit in October. It declined nearly 4 percent Friday. Nifty Auto also declined over 4 percent whereas Nifty Metal and Nifty Realty plunged over 6 percent. Nifty IT and FMCG saw a sharp sell-off to the tune of nearly 2 percent. Nifty Pharma and healthcare indices rose nearly 2 percent.

Globally, stocks tumbled nearly 1 percent and were on course for worst week since early October. Oil also fell below $80 a barrel after news of a possibly vaccine-resistant coronavirus variant sent investors scurrying to the safety of bonds, the yen and the Swiss franc.

Little is known of the variant, detected in South Africa, Botswana and Hong Kong, but scientists say it has an unusual combination of mutations. It may be able to evade immune responses and be more transmissible.

British authorities think it is the most significant variant to date and have hurried to impose travel restrictions on southern Africa, as did Japan, the Czech Republic and Italy on Friday. The European Union also said it aimed to halt air travel from the region.

European stocks plunged nearly 3 percent, on track for their worst day since September 2020. Britain’s FTSE and Germany’s DAX sank 3 percent nearly.

MSCI’s index of Asian shares outside Japan fell over 2 percent — sharpest drop since August. Japan’s Nikkei skidded 2.5 percent and S&P 500 futures were last down 1.8 percent.

Oil prices slid, with US crude futures down nearly  6 percent to $73.96 a barrel and Brent crude slid over 4.5% to $78.38 amid fresh demand fears. Meanwhile, gold rose over half a percent to $1,800 an ounce.

With inputs from Reuters

Also Read | Worst day for D-Street since April as new COVID variant spooks investors; here’s what else is hurting market

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cipla, AstraZeneca, Pfizer, others rally as focus shifts to pharma on emergence of new COVID variant

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of pharmaceutical and healthcare companies like Solara, AstraZeneca, Cipla surged over 6 percent on Friday in an otherwise negative market — the sharpest drop in seven months — on reports of a fast-spreading COVID-19 variant that emerged in South Africa.

The World Health Organisation (WHO) warned of the new and possibly vaccine-resistant COVID variant B.1.1.529. According to primary research findings, the variant harbours a constellation of mutations and thus, is likely to have a higher transmission rate than the Delta variant.

The S&P BSE Healthcare index rose over 2 percent even as Sensex declined 2.5 percent as the investor focus shifted to pharma stocks amid the reports of the new variant.

The shares of Solara Active Pharma — a pure-play API company — surged over  8 percent, rising to an intraday high of Rs 1,175. At 11:15 am, the stock was trading over 7.5 percent higher at Rs 1,168.

AstraZeneca India, a research-based biopharma company and COVID-19 vaccine maker, was also up over 8 percent, rising to an intraday high of Rs 3,280. At 11:15 am, the stock was trading over 6 percent higher at Rs 3,224.

Cipla India, a large-cap pharma company, rose as high as 6.5 percent to Rs 958.7. Panacea Bio, a manufacturing partner of Russia’s RDIF for the sale of Sputnik V vaccine in India, also rose over 5 percent, hitting an intraday high of Rs  202.15.

Also Read | Heavily mutated COVID-19 variant emerges in South Africa: What we know about B.1.1.529 and its impact on India

Pfizer India, a COVID-19 vaccine maker, saw an increase of 5.5 percent in share price. The stocks rose to an intraday high of Rs 5,168. At the time of writing, it was up over 4 percent to Rs 5,111.

Glenmark Pharma, headquartered in Mumbai, also witnessed a surge of 4 percent as it rose to a high of Rs 551.5. At 11:30, it was up over 1.5 percent to Rs 538. Laurus Labs, a pharma and biotech company, also rose 4 percent to Rs 555. At 11:30, the stock was up over 1.3 percent to Rs 541.

The shares of Dr Lal Path Labs, a diagnostics test provider, surged over 6.5 percent to Rs 3,650. It was up over 4 percent to Rs 3,566 at the time of writing.

Also Read | Sensex, Nifty50 tank as new COVID variant spooks investors; here’s what else is hurting D-Street

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Heavily mutated COVID-19 variant emerges in South Africa: What we know about B.1.1.529 and its impact on India

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A new heavily mutated COVID-19 variant that has been detected in South Africa is raising concerns all over the world. The variant — called B.1.1.529 — seems to be spreading fast, with 77 fully confirmed cases found in Gauteng province of South Africa, four detected in Botswana and one in Hong Kong, that is directly linked to travel from South Africa.

According to primary research findings, the variant harbours a constellation of mutations and thus, is likely to have a higher transmission rate than the Delta variant.

What we know about the B.1.1.529 variant of COVID-19

COVID variant B.1.1.529 was first spotted in genome-sequencing data from Botswana. It caught the attention of scientists as the variant has more than 30 mutations on the spike protein, which lets the virus unlock the doorway into our body’s cells.

The variant, like Alpha and Delta, will be given a Greek code-name by the World Health Organization.

South African researchers have found that the variant has 10 mutations compared to just two for the deadly Delta variant.

The mutations likely came from a single patient who succumbed to the virus.

However, scientists have pointed out that all mutations are not necessarily bad. This heavy mutation is concerning as the new variant is significantly different from the original one that emerged in Wuhan (China), thus raising the fear that the existing vaccines might not be as effective against B.1.1.529.

World Health Organisation’s response

WHO’s Infectious Disease Epidemiologist Maria Van Kerkhove acknowledged the threat that the new variant may pose during a question and answer session with the press. She said, “This is a variant that was reported to us by our colleagues in South Africa. There are fewer than 100 genomes available, so, we don’t know very much about it yet. However, we do know that this variant has a large number of mutations.”

Dr @mvankerkhove gives an update on #COVID19 virus variant B.1.1.529, during the #AskWHO session on 25 November 2021 ⬇️ pic.twitter.com/ZpflfEYzW9

— World Health Organization (WHO) (@WHO) November 25, 2021

She added that researchers are getting together to understand what these mutations will mean for diagnostics, therapeutics, and vaccines. “It will take us a few more weeks to understand the impact of this variant… The Technical Advisory Group on SARS-CoV-2 Virus Evolution (TAG-VE) will discuss if this will become a variant of interest or a variant of concern. Subsequently, we will give it a Greek name (like Aplha, Beta, Delta variants),” Kerkhove told reporters.

Preventative measures in India

According to new agency ANI, official sources have confirmed that India has so far not reported any case of the new variant.

Taking cognisance of the new COVID-19 variant, the Health Ministry on Thursday issued a direction to states asking them to subject international travellers coming from and transiting through Botswana, South Africa, and Hong Kong to “rigorous screening and testing”.

Health Secretary Rajesh Bhushan said that the new variant has “serious public health implications for India in view of the recently relaxed visa restrictions and opening up of international travel”.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Worst day for D-Street since April as new COVID variant spooks investors; here’s what else is hurting market

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian equity benchmarks tanked nearly three percent on Friday tracking a sell-off across global markets as a new variant of COVID-19 spooked investors. That was the worst single-day fall for both Sensex and Nifty50 since April 12. The sharp losses come as the market began the December futures & options series, after ending a monthly series lower for the first time in four months.

The news of the detection of a new and possibly vaccine-resistant variant of the coronavirus cast a sharp blow to investors’ appetite for risk, sending them rushing to the safety of bonds, the yen and the dollar. MSCI’s emerging market index plummeted 1.7 percent.

“There is fear of this new variant spreading to other countries which might again derail the global economy. There is already uncertainty as to when the US Fed will start raising interest rates. So the markets might continue to reel under pressure and would actively track the COVID situation globally,” said Hemang Jani, Head of Equity Strategy and Senior Group VP-Broking and Distribution at Motilal Oswal Financial Services.

ALSO READ: A look at recent crashes on Dalal Street

Here are some key factors that are impacting the market now:

COVID variant: Scientists said the variant, detected in South Africa, may be able to evade immune responses. Little is known about the new variant, however, scientists told reporters it has a “very unusual constellation” of mutations, according to a report by Reuters.

The news comes at a time when the Indian market has broken a series of records in a rebound from the pandemic lows, triggering concerns about unreasonably priced valuations.

Valuations: Indian equities have become expensive following a near one-sided rally in the past 18 months. Foreign brokerages have lowered their ratings on the Indian market and advised their international clients to book profits.  According to them, the Sensex and Nifty are trading far ahead of their historic valuations. The RBI has also cautioned against high equity valuations. The equity market has been performing strongly since the COVID-19 pandemic, but the valuations of companies are much higher than what would be expected based on financial indicators, its economists said.

Fed tapering: The US central bank is set to begin tapering its $120 billion a month of pandemic-era bond purchases, by $15 billion a month. It plans to end the stimulus altogether in 2022. This means less liquidity in global markets, which in turn could reduce allocations by foreign investors to markets, including India.

Costly crude: Crude oil prices continue to decline, though still above India’s comfort zone. Brent was last seen down 2.5 percent at $80.2 a barrel, and WTI down 3.1 percent at $76 a barrel. The US has launched an auction for 32 million barrels of crude from four strategic petroleum reserves sites to be delivered between late December and April 2022. The sale of SPR oil is expected to benefit buyers in Asia.

Inflation: Price increases have remained high around the globe primarily due to supply chain blockages and labour shortages. Most central banks have said that high inflation is temporary, but many investors believe that price increases are unlikely to subside anytime soon, which may lead to interest rates hikes.

Risk-off strategy: Investors globally are staring at an earlier-than-expected hike in key interest rates by the Fed, which could trigger many investors to move a part of their assets out of risky assets like emerging market equities. This spells troubles for emerging markets in general, including India, which has outperformed most of its peers in 2021.

Repeal of farm laws: While this does not have a direct bearing on stock valuations, it has come as a sentiment dampener in a weak market. The Farm Laws Repeal Bill, 2021 will be introduced in the Lok Sabha for passage in the winter session of Parliament, which begins on November 29. The government’s decision has led to concerns about the fate of other more difficult reforms.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Australia investigates new COVID-19 variant found in South Africa

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Australia on Friday said it was investigating the newly identified COVID-19 variant spreading in South Africa and warned it may close its borders to travellers from the African nation if risks from the new strain rise.

South African scientists are concerned the new variant could evade the body’s immune response and make it more transmissible as it has a ”very unusual constellation” of mutations.

Australia Health Minister Greg Hunt said he would swiftly respond if the World Health Organization (WHO) classifies it as a major new variant.

Read Here | WHO calls special meeting as new COVID-19 variant in South Africa raises concerns

”As we have always been, we are flexible. And if the medical advice is that we need to change that, we won’t hesitate,” Hunt told reporters in Sydney. ”That is what we have done as a country, whether it has been closing borders, whether it has been ensuring there is quarantine.”

Alarmed by the variant, Britain temporarily banned flights from South Africa, Namibia, Botswana, Zimbabwe, Lesotho and Eswatini from Friday, and asked returning British travellers from those destinations to quarantine.

UK health officials said the new strain could make vaccines less effective as it has a spike protein that was different from the one in the original coronavirus that vaccines are based on.

Read Here | Centre writes to 13 states, UTs expressing concerns over declining COVID-19 testing rates

The WHO said it would take ”a few weeks” to understand the impact of the new variant.

Australia early this month eased its international border restrictions for the first time during the pandemic allowing fully vaccinated residents to return to the country without quarantine after higher vaccination levels.

Australia had largely stamped out infections for most of this year until an outbreak of the highly infectious Delta variant in late June spread rapidly across its east. About 205,000 cases and 1,985 deaths have been recorded so far, lower than many other countries in the developed world.

(With inputs from Reuters)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow