Why ULIP mis-selling has become rampant ?

Oxygen producers and pharmaceutical firms were on a tear last week amid rising coronavirus cases in the country. With a rally of 74.12%, Everest Kanto Cylinders emerged as the top gainer on the BSE. The company is engaged in the business of manufacturing industrial and medical cylinders for oxygen, hydrogen, nitrogen, argon and helium, among others.

On the other hand, the benchmark BSE Sensex and NSE Nifty declined around 2% for the week ended April 23. The 30-share Sensex declined 953.58 points to 47,878.45, while the 50-share Nifty index slipped 276.50 points to 14,341.35.

Overall, the market started the truncated week on a pessimistic note as traders remained cautious with a private report stating that leading brokerages have downgraded India’s GDP growth projections for the current fiscal year to as low as 10% on local lockdowns threatening fragile recovery.

Despite the weakness in the broader market, other players like Vivimed Labs, Bal Pharma, Shukra Pharmaceuticals, Times Guaranty, Denis Chem, Gennex Laboratories and KMC Speciality Hospital also gained between 50%-74% during the week gone by.

“Markets remained under pressure for yet another week as rising Covid-19 cases nationwide and strict restrictions announced by several state governments dented sentiments. However, as the week progressed, favourable vaccine-related updates and supportive global markets capped the damage,” said Ajit Mishra, VP Research, Religare Broking.

On the sector front, pharma and metal ended with healthy gains whereas all the other indices traded subdued wherein realty, FMCG and auto were the laggards.

Going ahead, Mishra does not see the volatility easing out in the coming week too, thanks to scheduled data and events. First, the monthly expiry of April month derivatives contracts will keep the traders on their toes. On the data front, core sector data will be unveiled on April 30. The recent proposal by the US president to raise capital gains tax has started showing its impact in US markets which may cascade to others in the coming week. Needless to say, the Covid-related updates will remain on the participants’ radar.

With the progress of the earnings season, some big names like Axis Bank, Maruti, Bajaj Auto, Hindustan Unilever and Indusind Bank will announce their numbers along with several others.

Vista Pharma (up 47%), Camex (up 47%), Link Pharma (up 44%), Sandu Pharma (up 42%), Refex Industries (up 42%), Panacea Biotech (up 37%) and Alpa Laboratories (up 37%) stood among other major of the week.