Sensex, Nifty closed with gains on Monday morning. Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic equity markets continued to rally on Monday. S&P BSE Sensex closed the day’s trade 617 points higher at 51,348 points. Nifty 50 was up 191 points at 15,115. Mahindra & Mahindra was the top Sensex gainer, surging 7.4%. This was followed by Bajaj Finserv, Infosys, and Bharti Airtel. Among the drags were, Hindustan Unilever, Kotak Mahindra Bank, and Bajaj Finance. India VIX was up 2% while broader markets moved higher. Among sectoral indices, only Nifty FMCG and Nifty PSU Bank index closed down in the red.
To boost the pandemic-hit economy, the government of India is committed to higher capital expenditure not just in the coming fiscal year but over the next three years, principal economic advisor Sanjeev Sanyal said. He added that a sharp hike in capex in the recently announced Union Budget reflects the government’s economic strategy of rebuilding battered demand while ensuring that the supply side is expanded enough to move in tandem. The government has budgeted capital expenditure at Rs 5.45 lakh crore for FY22, which is 26.2% higher than the revised estimates of this fiscal year.
Highlights
Bulls are not looking to slow down just yet. Domestic equity markets soared to fresh all-time highs on Monday and closed at their highest-ever closing levels. S&P BSE Sensex ended 617 points higher at 51,348 points, while the broader Nifty 50 was up 191 points at 15,115. Mahindra & Mahindra was the top Sensex gainer, surging 7.4%. This was followed by Bajaj Finserv, Infosys, and Bharti Airtel. The market capitalization of all BSE-listed firms has now reached Rs 202.84 lakh crore.
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Sensex closed above 51,300 for the first time ever while Nifty ended the day's trade at 15,115 points. Only Nifty FMCG and Nifty PSU Bank index closed with losses. India VIX gained.
On Monday, India VIX, the volatility gauge surged higher along with the benchmark indices. India VIX hit a high of 24.35 but was below 24 levels ahead of closing.
Among top Sensex gainers, just ahead of the closing bell are Mahindra & Mahindra, Bajaj Finance, and Bharti Airtel. M&M shares are up 7%.
"European equity markets are trading higher this morning with the DAX currently up 0.60 per cent on the day. With the 14k hurdle cleared, an extension of the rally appears likely in the near-term. European stock markets are likely to continue lagging behind US markets as the vaccination campaign on the continent remains chaotic," said Milan Cutkovic, Market Analyst at AxiCorp.
PM Modi in Rajya Sabha: Prime Minister Narendra Modi on Monday reiterated that the central government was open to dialogue on farm laws and that the agriculture reforms neither touch minimum support price nor are they aimed at finishing state-run mandis. In an over hour-long speech, Prime Minister Modi talked about farm laws and the protest around it. Countering opposition, he said that almost every opposition parties have felt the need there should be some reforms in agriculture sector. However, he said, now some parties that advocated for the reforms have made a U-turn.
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Bulls have been running the show on Dalal Street for months now. The multi-month rally that has seen Sensex and Nifty scale to fresh all-time highs repeatedly has sown some seeds of worry now. Nifty is now at a PE of 40x -- which leads many to conclude that markets are stretched now. However, leading Dalal Street voices believe otherwise post the budget. “Since the quarter of June 2020 was a complete washout in terms of earnings, merely looking at valuations from a Price/Earnings perspective would not be prudent,” Ashish Shankar, Deputy MD, Motilal Oswal Private Wealth Management.
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Billionaire investors Vijay Shekhar Sharma, Ritesh Malik, and Nikhil Sharma have helped Indore-based Supersourcing raise 1.5 crore in a round of seed funding. Shekhar, the top-notch businessman behind PayTM, and Malik, Founder, and CEO of Innov8 co-working, have lent support and credibility to the IT outsourcing platform, eight months after its launch.
"Some of the banking giants took off during the week as if there is no tomorrow. Now, markets have hastened towards their near term targets with this fast and furious rally so soon. Hence, it would be interesting to see how it behaves in this week. As far as levels are concerned, 15050 – 15200 – 15400 are the important Fibonacci levels in the upward direction; whereas on the lower side, 14700 – 14500 are to be seen as key supports," said Sameet Chavan Chief Analyst-Technical and Derivatives, Angel Broking.
HCL Technologies on Monday announced a special one-time bonus worth over Rs 700 crore for its employees, as the IT giant marked USD 10 billion (about Rs 72,800 crore) revenue milestone. The special bonus will be paid to employees in February 2021, amounting to nearly USD 90 million plus payroll taxes in some countries, the impact of which is excluded from FY21 EBIT (earnings before interest and taxes) guidance provided by the company last month, HCL Tech said in a statement.
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Kotak Mahindra Bank, Hindustan Unilever, ITC, and Bajaj Auto were the top Sensex drags at this hour. Only Kotak Mahindra Bank of these was down more than 1%.
US stock market benchmark indices S&P 500 and the tech-heavy Nasdaq Composite posted double-digit returns in the calendar year 2020, resembling trends of 2009, the first year of emergence from a deep recession. Andrew Slimmon, Head of Applied Equity Advisors Team, Morgan Stanley Investment Management, said that while past performance does not necessarily predict future results, being an active equity investor does require understanding historical moves.
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Divi’s Laboratories Ltd share price fell as much as 3 per cent to Rs 3,700 apiece on BSE, despite reporting a 31.05 per cent on-year growth in net profit to Rs 470.62 crore in the October-December quarter. Divis Laboratories stock rose to a day’s high of Rs 3886 on Monday. So far in the trade, over 58,000 shares have been traded on the BSE, while 20.88 lakh shares exchanged hands on the National Stock Exchange (NSE). AR Ramachandran, Co-founder & Trainer, Tips2Trade, told Financial Express Online, that with a strong operational performance in Q3FY21 and an overall positive sentiment prevailing in the market, Divi’s Laboratories remains a strong buy from a long term perspective.
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Britannia reported an expectedly sharp deceleration in revenue performance with just about 5.8% growth in sales vs 11% seen in Sep-Q, 26% in Jun-Q as the lockdown-led surge in at-home consumption ebbed post re-opening of activities in the country. Notwithstanding these issues, Britannia still delivered a 21.8% growth in EBITDA helped by a sharp 209bps expansion in GPM plus its characteristic efficiencies in overheads management (Other Expenses grew just 4% yoy, and was 4% lower qoq). With a tough base to contend with for 1HFY22, the stock seems to lack near-term trigger given market’s excessive preference for topline vs bottomline growth. We continue to maintain our positive stance, given management’s ability to use internal levers to drive growth and earnings as well as a more reasonable valuation profile (sub-40x FY23 EPS earnings vs c.50x for the sector ex-ITC).
Mahindra & Mahindra’s (M&M) share price soared 10% to hit the upper circuit on Monday morning. The up-move in the stock came just days after the company reported its fiscal third-quarter earnings where the company reported a 40% on-year jump in net profit. Revenue of the firm stood at Rs 14,057 crore, up 16% from the same period last year. Domestic brokerage firms see positives in the company’s results with many increase their target price for the stock by as much as 20%. Shares of the company were currently trading at Rs 924 per share.
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Technically, we are standing on the verge of the horizontal support of 72.80. If USDINR pair trades convincing below 72.80 then we can see a move till 72.50 levels. On the flip side, immediate resistance lies at 73.05 and further at 73.15 levels. Overall, bias is likely to remain on the downside. And hence, we advise importers to wait for the near term booking with stoploss of 73.00 and exporters to keep on selling on upticks till 72.90-95 levels.: Amit Pabari, managing director, CR Forex Advisors
"Just as expected last week, 15000 was merely a psychological resistance. The Nifty has flown out of that level this morning and we should be headed to 15200. If the markets can sustain at these levels, the index might surprise us by moving up all the way to 15500. 14600 has now become good medium-term support for the markets and if we can keep above that level, every dip can be utilized as a buying opportunity," said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
"The fundamental factor supporting India's outperformance in February ( Nifty up by 7%) is the Q3 results, which have beaten expectations by an impressive margin, across industries. There are clear indications that we are in an expansionary phase in the earnings cycle. If this momentum sustains and the FIIs continue to buy, the market can move up further. The excellent results from the banking sector saw the Bank Nifty move up by 17 % so far in Feb with SBI clocking big gains. The trading opportunities in PSU banks are not likely to last long. Investors should stick to quality. The focus on infra capex in the budget has brought renewed interest in capital goods stocks. More money is likely to flow into IT too," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
NASDAQ Composite reached fresh all-time highs in the previous week as global markets rallied. The index soared 6% during the week to close at 13,856 points. With it, the biggest technology names on Wall Street were also soaring higher. Collectively knows as the FAANG stocks, companies like Facebook, Google, Apple went higher as the volatility index stooped lower to hit its lowest in nearly two months. The rally was fuelled by a US President Joe Biden’s administration geared up to fast track the $1.9 trillion stimulus package.
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Shares of Mahindra & Mahindra surged 10% to hit the upper circuit on Monday morning. Stocks jumped from opening at Rs 888 per share to Rs 952 apiece.
Sensex continued to climb higher on Monday morning and was soon at 51,300. All Sensex constituents, except Bajaj Auto and NTPC were up in the green.
Sensex began the day's trade above 51,200 levels for the first time ever as it reached fresh all-time high. Nifty started trading above 15,100. Mahindra and Mahindra shares surged 5%.
Sensex reached 51,000 in pre-open session while Nifty was still holding above 15,100.
Nifty breached 15,100 in the pre-open session on Monday while Sensex was just below 51,000.
COMEX gold trades flat near $1810/oz after a 1.2% gain in the previous session. Gold recovered from recent lows as the US dollar index shed some of its recent gains. Also supporting price is increased expectations of US stimulus measures as well as mixed US jobs report. However, weighing on price is weaker investor interest as is evident from ETF outflows and surge in US bond yields. Gold has bounced back to trade above the $1800/oz level however a sustained rise is unlikely until the US dollar corrects.: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
"Oil ended the week higher (WTI: +9% w/w, Brent: +6% w/w) with price support from supply curbs by OPEC+ and improved demand optimism due to the vaccine rollout. Oil is trading higher at Asia open getting a kick start from US stimulus effect and a slightly weaker dollar. As well, preliminary OPEC production data for January also suggests compliance with OPEC+ quotas improved in January," said Stephen Innes, Chief Global Market Strategist at Axi.
Nifty futures were trading 87 points or 0.58 per cent higher at 15,029.50 on Singaporean Exchange, indicating a positive start for BSE Sensex and Nifty 50 on the first day of the week.
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By fixing a low revenue receipt target of Rs 53,987 crore from telecommunication services for FY22, the government has signalled it does not plan to hold auctions for 5G spectrum in the 3.5 GHz band in the next fiscal. The government plans to hold auctions for 4G spectrum in March, the proceeds of which would be accounted for in the next fiscal. This auction is for 4G bands of 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2,300 MHz and 2,500 MHz.
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A total of 140 companies including BPCL, Aditya Birla Fashion, AstraZeneca Pharma, Balkrishna Industries, Bombay Dyeing, Godrej Consumer Products, NMDC, Redington India, Sun Pharma Advanced Research Company, Sun TV Network, Torrent Pharmaceuticals, Usha Martin and Vakrangee, amont others are slated to announce their quarterly earnings on February 8.
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"We need to be stock specific or buying should be done only at major large supports. In the coming week, earlier crucial resistance 14750/49750 levels, would act as a major support for the market. In the worst-case scenario, we might see the levels of 14500/49000. On the higher side, 15250 and 15350 would be major hurdles for Nifty and for the Sensex it would be at 51500 and 52000 levels. The focus should be on Metals, Insurance and Pharmaceutical companies," said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
India Inc continues to turn out encouraging numbers for the Q3FY21 earnings season with very few disappointments. The good news is that most companies have managed to notch up a very good top-line growth whether through better volumes or price increases or, in some cases, both. Even manufacturers of capital goods that were expected to see a fall in revenues have surprised the Street.
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Calibrated stimulus measures in the wake of the Covid-19 pandemic and a sharp hike in capex in the Budget for FY22reflect the government’s economic strategy of rebuilding battered demand while ensuring that the supply side is expanded enough to move in tandem, principal economic advisor Sanjeev Sanyal told FE.
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