In today’s briefing:
- NIFTY Index Rebalance: Flows at the Close Today
- CSPC Pharmaceutical Group (1093.HK) – Conservative About the Business Transformation Outlook
NIFTY Index Rebalance: Flows at the Close Today
- The changes to the NIFTY Index (NIFTY INDEX), Nifty Bank Index (NSEBANK INDEX) and NIFTY NEXT50 Indices were announced on 24 February and will be implemented at the close today.
- There is a fair amount to trade on the NIFTY Index (NIFTY INDEX) and Nifty Bank Index (NSEBANK INDEX) stocks given the sizeable passive assets that track the indices.
- There is pre-positioning on some of the names and there could be opportunities to build positions to play for a reversal.
CSPC Pharmaceutical Group (1093.HK) – Conservative About the Business Transformation Outlook
- Due to the lack of differentiated and frontier enough target layout, the commercialization potential would be more easily questioned, with high uncertainty of having the next NBP level products.
- CSPC has made easy money from a few large varieties/generic drugs for many years, but is destined to make the business transformation more difficult, because the “opportunity cost” is high.
- CSPC’s products have lost their pricing power. Therefore, when its valuation is very low or the entire sector is moving upward, this stock could be traded due to positive momentum.
Before it’s here, it’s on Smartkarma
