On the sectoral front, the Nifty Auto and Nifty IT indices ended 1 per cent lower each. Image: ReutersShare Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market indices BSE Sensex and Nifty 50 extended the Union Budget 2021 rally to the fifth consecutive day on Friday. BSE Sensex ended 117 points or 0.23 per cent up 50,732, while the Nifty 50 index ended 29 points or 0.19 per cent at 14,924. The rally was primarily driven by better-than-expected quarter earnings by State Bank of India and RBI MPC’s outcome. The Reserve Bank of India kept the interest rates unchanged and maintained the accommodative stance. SBI shares surged nearly 11 per cent, followed by Kotak Mahindra Bank, Dr. Reddy’s Laboratories, Ultratech Cements, ITC, HDFC Bank and HUL among others. On the flip side, market gains were capped by losses in Axis Bank, Bharti Airtel, ICICI Bank, Maruti Suzuki, HCL Tech, TCS, Infosys among others. On the sectoral front, the Nifty Auto and Nifty IT indices ended 1 per cent lower each, while the Nifty PSU Bank index advanced 3.6 per cent on the NSE.
Highlights
BSE Sensex ended 117 points or 0.23 per cent up 50,732, while the Nifty 50 index ended 29 points or 0.19 per cent at 14,924.
Union Budget 2021 optimism and healthy foreign fund inflows have pushed the Indian share market benchmarks to fresh highs. BSE Sensex hit the crucial 51,000-mark, while the Nifty 50 index climbed to a lifetime high of 15,000 in the intraday deals on Friday. Investors are looking for cues to figure if the benchmark indices would still keep rising. Technical analysts feel that Nifty will find some resistance at 15,000 level.
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The budget has provided a renewed optimism but the sharp run-up of 9.3% in NIFTY50 over the past four days indicates some consolidation and sideways move from current levels. The dollar index has stopped declining and a breakout above 92 levels could put pressure in emerging markets. On the higher side, the monthly resistance is placed at 15150 while on the downside supports are in range of 14380-14470 gap levels. Risk Reward is not in favour, one should book some gains and wait for declines to enter: Vikas Jain, Senior Research Analyst at Reliance Securities
The GDP growth is expected at 10.5% which showcases that India is advancing towards a more normalized environment. Despite larger than anticipated deflation in vegetable prices in December, the increase in commodity prices globally is likely to keep the core inflation elevated. The rising commodity prices (like crude oil) globally is likely to influence inflation to move in high trajectory. Incentivizing new MSME loans would help banks in expanding their lending cap for the sector. The policy makers in India are taking decisions which is in the best interest of the country's economic revival: Rohit Poddar, MD, Poddar Housing and Development Ltd and Joint Secretary, NAREDCO Maharashtra
As expected the MPC has kept rates unchanged for the fourth consecutive time after it cut rates in May 2020 and unleashed liquidity in the system to help growth. The accommodative policy stance is also unchanged to act on rates going forward if the need arises. RBI Governor projecting GDP growth over 10% for next year and easing CPI inflation is a big positive. RBI's resolve to keep easy system liquidity and low interest is key to the recovery of the real estate industry and the overall economy. The real estate sector is showing signs of recovery and needs government hand-holding. RBI's announcement on LRS will help boost remittance, NRIs have been huge investors in Indian real estate: Krish Raveshia, CEO at Azlo Realty
The RBI MPC’s decision to keep policy rates unchanged was as expected. However, we see some downside risk to RBI’s inflation estimate for 1HFY22 and this could provide some room for RBI to remain accommodative on liquidity for a bit longer even as the cost of that liquidity will inch higher. While expectations had built up post-Budget for a clearer and more affirmative action from the RBI, the policy has kept the room open for reacting to market conditions. The decision to extend the duration of HTM relaxation and two-phase normalization of CRR will provide room for some support to yields. We continue to expect the RBI to normalize liquidity gradually and short term rates to align higher within the repo-reverse repo corridor through the year. We expect the 10-year yield to range between 6-6.75% over the year with the lower bound possible only with sustained OMO purchases from hereon. We will watch for government’s decision on any change in the inflation target: Suvodeep Rakshit, Vice President & Senior Economist at Kotak Institutional Equities
State Bank of India (SBI) share price hit a fresh 52-week high of Rs 408.35 apiece on BSE on Friday, after it posted better-than-expected October-December quarter results, along with healthy asset-quality performance. SBI was the top Sensex gainer, rising 15 per cent in the trade.
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Stove Kraft listed on the exchange at 21% premium to the issue price at the higher price band due to positive market sentiment. We are cautious about its valuation. Company’s brand value, margins and return on capital are lower than its peers. Any increase in raw material prices will have a significant impact on the bottom line. Company also does not have a good track record of profitability. Cost reduced in H1FY21 due to Covid-19 such as travelling, advertisement is going to come back once business comes back to normalcy. So H1FY21 margins are not sustainable. We advise investors to book profit.: Keshav Lahoti, Associate Equity Analyst, Angel Broking Ltd
The RBI announcement has come on the expected lines, continuing to remain accommodative. However, there is a marginal increase in inflation which at this time of the year would be a cause of concern. What is important to note is while FPI and DI inflows are increased, the manufacturing investments continue to lag and whilst the outlook on growth suggests positive, one may have to carefully watch how credit off-take picks up in the next two quarters. Also, private investments will be critical to drive future economic growth. The two indicators to watch out for in the coming quarters would be household consumption alongside credit off-take from banks. This will determine if there is real demand pick up or if we are still riding the pent up demand: Sanjay Kumar, CEO & MD, Elior India
The basis of the RBI policy remains accommodative, and it is reflected in the status quo with respect to the base rate - the repo rate is unchanged. But there is a strand of rationalization of excess liquidity, as is evident from the phased hike in the CRR for its restoration to 4%, the pre-pandemic level: Joseph Thomas, Head of Research - Emkay Wealth Management
As seen in the past few months, housing markets in the country have responded well to low home loan interest rate. Given the interlinkages of the housing market with other sectors of the economy, we believe that low interest rate for a sufficiently long period of time will help build a strong and broad-based demand momentum in the Indian real estate market: Shishir Baijal, Chairman & Managing Director, Knight Frank India
Security and Intelligence Services India (SIS India) Consolidated PAT for the fiscal third quarter came in at Rs 99 crore, translating to an on-quarter growth of 26.5% and PAT margin at 4.2%. Revenue for the quarter stood at Rs 2,358 crore.
The RBI’s stance to retain the repo and reverse repo rates at 4% and 3.35%, respectively and decision to maintain the accommodative stance for “as long as required” will provide comfort to the markets. Passing on the benefit of on-Tap TLTRO to NBFCs will allow stressed sectors to borrow more, including the real estate and housing finance. The revolutionary announcements on retail investors to provide direct access to G-Sec market and allowing residents to make direct remittances to IFCS for NRIs, along with the plans of integrated ombudsman scheme, indications of normalcy returning in growth and the CRR normalisation roadmap, are among other important measures announced today that will encourage investments in the coming months: Ravindra Sudhalkar, CEO at Reliance Home Finance
Immediate support for Nifty is placed at 14860. If the index fails to cross 15000 and breaks 14860 instead, a minor correction can be expected till 14750-14680. However, given the prevailing momentum, if today's high is surpassed before breaking 14860, the index is likely to march towards 15200-15300 in the days ahead.: Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS
Nifty touched the psychological 15000 level for the first time ever, as markets continued scaling new highs boosted by Budget optimism, upbeat corporate earnings, and strong global cues. The strength in Nifty today has been primarily driven by banking stocks, with the Bank Nifty index surging over 3% to scale a new high of 36600. Looking at the technical structure, markets remain in a very powerful primary up trend, while the short-term bullish momentum also remains very strong. However, given how swift the rally has been this week, minor profit booking cannot be ruled out. Hence, one needs to closely watch the price action near 15000.: Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS
Realty stocks such as Godrej Properties, Brigade Enterprises Ltd, Oberoi Realty Ltd, Suntech Realty, among others drove Nifty Realty index to new 52-week high.
Nifty Financial Services index too hit a fresh 52-week high of 16,987.55, up nearly 1.5 per cent, surpassing the previous high of 16,633.55.
Bank stocks such as SBI, Kotak Mahindra Bank, IndusInd Bank, HDFC Bank, Axis Bank were among top Sensex gainers.
Nifty Bank, Nifty PSU Bank, Nifty Private Bank and Nifty Realty indices have scaled fresh 52-week highs in today's trade.
After a budget that had limited announcements for real estate, the sector was hoping against hope for a further reduction in the repo rates. The reduction would have helped spurred growth in demand for real estate assets, that has been severely hit as a result of the pandemic and subsequent lockdowns. Currently apart from the reduction in stamp duty charges in some parts of the country, the all time low housing loan rates have given the much-required filip to sales activity in the last quarter. The reduced repo has the potential to boost consumption in the economy and help reduce dependence on government spending: Kaushal Agarwal - Chairman, The Guardians Real Estate Advisory
Rate sensitive stocks, barring from the auto sector, were trading in the green, rising up to 2.75 per cent so far in the trade.
RBI kept the repo rate unchanged and maintained accommodative stance. Repo Rate at 4 per cent, bank rate at 4.25 per cent, MSF at 4.25 per cent and reverse repo rate at 3.35 per cent
While the global market sentiments remain strong, all eyes will be on RBI’s monetary policy outcome for interest rates, commentary on inflation and economic outlook. What needs to be watched is the central bank's move on the liquidity front as for the last three monetary policies, the RBI kept the key benchmark rate unchanged, but have conducted 14 days reverse repo to suck out excess liquidity. Additionally, a significant spike in the 10 year Indian bond yields above 6% might also repel the central bank from getting further accommodative. Overall, despite much rally of in equities, the USDINR pair hasn’t been able to break the 72.80 support levels on the back of RBI intervention. Hence as long as the near term range for remains between 72.80-73.50 levels, buyers can hedge near 72.80-73.00 and one can look to sell above 73.30-73.40 levels in the near term.: Amit Pabari, managing director, CR Forex Advisors
We have hit the 15000 mark and the markets did it with utmost ease! While the Nifty was a tad shy since the last couple of days, it managed to conquer the psychological level. We should scale higher to levels closer to 15200 and this could be achieved by this month itself. 14500 is a good support for the index and intra day corrections can be positively utilised to initiate or add positions.: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
COMEX gold trades marginally higher near $1796/oz after a sharp 2.4% decline yesterday. Gold inched up today gaining support from ETF buying, US stimulus expectations and loose monetary policy stance of central banks. However, weighing on price is the recent rise in the US dollar index and bond yields on the back of improving outlook for the US economy. Vaccine progress has also pressurized gold prices. Gold may remain under pressure until prices are below $1800/oz level and unless there is a sharp correction in the US dollar: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Power Grid Corporation of India, TCS, M&M, Bharti Airtel were among the top Sensex laggards.
The top Sensex gainers were State Bank of India (SBI), IndusInd Bank, ONGC, Kotak Mahindra Bank, Titan Company, Housing Development Finance Company (HDFC), Maruti Suzuki, among others.
BSE Sensex hit 51,000, gaining over 325 points or 0.64 per cent, while the broader Nifty 50 index crossed the crucial 15,000 on Friday
BSE Sensex was trading at record high, gaining over 200 points, while the broader Nifty 50 index crossed 14,900 in pre-opening session.
A total of 127 BSE listed firms including Britannia Industries, Mahindra & Mahindra, Punjab National Bank, Aditya Birla Capital, Mrs Bectors Food Specialities, Cadila Healthcare, Future Consumer, Fortis Healthcare, GSK Pharmaceuticals, Pfizer, RCF, Shipping Corporation of India etc., among others are scheduled to release their quarterly earnings on February 5.
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A total of 127 BSE listed firms including Britannia Industries, Mahindra & Mahindra, Punjab National Bank, Aditya Birla Capital, Mrs Bectors Food Specialities, Cadila Healthcare, Future Consumer, Fortis Healthcare, GSK Pharmaceuticals, Pfizer, RCF, Shipping Corporation of India etc., among others are scheduled to release their quarterly earnings on February 5.
The post-budget rally on Dalal Street has now extended to its fourth day. S&P BSE Sensex, after opening in the red, soared higher to close with gains yesterday as it breached 50,600 mark and ended above it for the first time ever. The broader 50-stock NSE Nifty is just shy of 14,900, from where it could test 15,000, according to technical analysts. On Friday morning, SGX Nifty was up 50 points, followed by the run-up on Wall Street, hinting at a gap-up start for equity markets.
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