Sectorally, barring the Nifty PSU Bank index, all the indices ended in the positive territory
(Image: REUTERS)Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and Nifty 50 ended over 1.5 per cent higher on Monday, primarily driven by buying in Housing Development Finance Corporation (HDFC), HDFC Bank, Kotak Mahindra Banka and ICICI Bank. During intraday deals, BSE Sensex hit a day’s high of 50,058. BSE Sensex ended 750 points or 1.53 per cent higher at 49,850, while the broader Nifty 50 index settled 232 points or 1.60 per cent higher at 14,762. Out of 30 Sensex stocks, only Bharti Airtel finished trade in red, down 4.45 per cent. Sectorally, barring the Nifty PSU Bank index, all the indices ended in the positive territory. Nifty Media index surged over 4 per cent followed by Nifty Auto, which ended up 2.38 per cent.
Highlights
14820-14950 is a resistance zone for the index. Until we do not get past this, the short term downtrend continues. If we resist and turn around from here, the markets can go down to test 14350-14400. This is a crucial area and stops are wide. Traders are advised caution. : Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The Market witnessed some lackluster movement. Nifty 50 Index is still trading below the resistance level of 14850. The breakout above 14850 is critical for the market to regain its upside momentum. While it is subject to further price action evolution. It is prudent to wait for a decisive breakout above 14850 and technical factors to improve before going long in the market. We retain our cautious stance and advise the traders to refrain from building a new buying position until we see further improvement.: Ashis Biswas, Head of Research at CapitalVia Global Research Limited
BSE Sensex ends 750 points or 1.53 per cent higher at 49,850, while the broader Nifty 50 index settled 232 points or 1.60 per cent higher at 14,762.
IRCTC stock price hit a new 52-week high of Rs 1,974 apiece, surging over 12 per cent on BSE on Monday. The stock opened at Rs 1,792.40 apiece.
Indian economy has reversed technical recession by showing a growth of 0.4% in 3QFY21, which is heartening. Further, Union Budget has already provided much-needed impetus to sustain ongoing rebound in economic activities by way of sharp increase in capital expenditures and a number to measures to stimulate investment and consumption activities in the country. Hence, we believe ongoing rebound in corporate earnings is likely to sustain in subsequent quarters, which augurs well for equities. However, high crude prices and concerns of higher commodity prices are likely to remain as key challenges for the markets in the near term. In our view, underlying strength of equities remains intact, and any meaningful correction should be used to buy quality stock with sound earnings visibility and margins of safety.: Binod Modi, Head Strategy at Reliance Securities
Domestic equities witnessed a sharp rebound today mainly on favourable global cues and positive GDP data. A broad-based rally was seen today wherein barring PSU Bank, most of the key sectoral indices saw sharp recovery. Auto, Private Banks and Metals indices witnessed a sharp rally ranging ~1.5-2.5%. Notably, the volatility index softened by over ~8%, which offers comfort. Power Grid, ONGC, Grasim and UPL were top gainers, while Bharti Airtel, Cipla and Bajaj Finance were key laggards: Binod Modi, Head Strategy at Reliance Securities
BSE Sensex was trading 769 points or 1.57 per cent higher at 49,869, while the broader Nifty 50 index was ruling 248 points or 1.71 per cent higher at 14,777 minutes ahead of closing
SBI General Insurance on Monday said it has tied-up with Indian Overseas Bank (IOB) for a bancassurance partnership for selling its non-life products. Through the alliance, SBI General will offer a range of general insurance solutions and innovative products to IOB customers, SBI General said in a release. Chennai-headquartered IOB has over 3,200 branches across the country and also has overseas presence.
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India’s power consumption grew 0.88 per cent in February at 104.73 billion units (BU) due to a slight rise in temperature in the month, official data showed. Power consumption in February 2020 was 103.81 BU, according to the power ministry data. However, the peak power demand met, which is the highest supply in a day, recorded a growth of 6.7 per cent at 188.15 GW in February 2021 compared to 176.38 GW in February 2020.
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RailTel Corporation of India share price surged 20 per cent to hit the upper circuit at Rs 145.65 apiece on BSE on Monday. The shares made a stock market debut last week on Friday, with an 11.28 per cent listing premium from its issue price of Rs 93-94 per share. With today’s gain, RailTel stock price is now up 55 per cent over its IPO price.
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Rates markets remain in focus following last week's US Treasury-driven cross-asset selloff. Monday's early price action points to a calmer start to the week following a move lower in yields globally. Australian government bonds are leading that with the 10-year currently rallying by ~26bp – the most significant drop in bond yields since last March – after the Reserve Bank of Australia (RBA) doubled down the size of its scheduled QE purchases. As well, US yields have rowed back a fair bit today. The 10-year yield is down 5bp, and the 30-year yield is down 3bp. Just as last week's yield gains were entirely driven by a repricing upwards of the US Federal Reserve’s expectations, so the short end has rewound today. There is a shift in the odds the Fed will move rates higher in 24 months. But the market has not budged in its view of Fed policy over the next 12 months. Simply put, the market is not challenging the Fed's willingness to hold rates lower for longer, just yet.
~Stephen Innes, Chief Global Market Strategist at Axi
Rates markets remain in focus following last week's US Treasury-driven cross-asset selloff. Monday's early price action points to a calmer start to the week following a move lower in yields globally. Australian government bonds are leading that with the 10-year currently rallying by ~26bp – the most significant drop in bond yields since last March – after the Reserve Bank of Australia (RBA) doubled down the size of its scheduled QE purchases. As well, US yields have rowed back a fair bit today. The 10-year yield is down 5bp, and the 30-year yield is down 3bp. Just as last week's yield gains were entirely driven by a repricing upwards of the US Federal Reserve’s expectations, so the short end has rewound today. There is a shift in the odds the Fed will move rates higher in 24 months. But the market has not budged in its view of Fed policy over the next 12 months. Simply put, the market is not challenging the Fed's willingness to hold rates lower for longer, just yet.
~Stephen Innes, Chief Global Market Strategist at Axi
The 12th and the last tranche of the Sovereign Gold Bond for FY21 are priced at Rs 4,662/gm. Investors applying online will get a discount of Rs 50/gm. Investment in paper gold is the best and the most effective way of investing in yellow metal. Gold should have an allocation of 5-20% of any portfolio depending on the risk appetite. Gold prices have been falling since the news of an effective vaccine was reported, as it has ignited hope that the rising number of cases will be arrested and the pandemic will end soon. Gold prices have fallen to hit an 8-month low on rising US Treasury yield, appreciating dollar, and global economic recovery. Moving forward, treasury yield, dollar movement, and the pace of economic recovery worldwide will guide gold prices.: Nish Bhatt, Founder & CEO, Millwood Kane International
The market opened on a high following the positive global cues but was unable to maintain the levels and is now trading near day low. Domestic sentiments were positive, as February Purchasing Managers' Index (PMI) data showed further improvement in the health of the Indian manufacturing sector as firms responded to increases in new work intakes by lifting production, input buying, and stocks of purchases. Buying interest was broad-based led by auto, Consumer Durables and IT shares. Adding to the optimism, the finance ministry said the GDP growth of 0.4 per cent in the December quarter shows that the economy has returned to pre-pandemic times and reflects the further strengthening of a V-shaped recovery. Despite the correction in the Nifty Index, major indices have remained positive other than Telecom: Likhita Chepa, Senior Research Analyst at CapitalVia Global Research Limited
Leading stock exchanges NSE and BSE on Monday said all their operations are functioning in a normal manner after HDFC Securities flagged that confirmations were not received for orders placed in the NSE cash segment due to a “technical glitch”.
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Hyderabad-based MTAR Technologies Rs 596-crore initial public offering (IPO) will open for subscription on Wednesday, March 3, 2021. Amid share market volatility, MTAR Technologies shares in the grey market were commanding a premium of 75 per cent. MTAR Technologies shares were trading at Rs 1,005, up Rs 430 over the IPO price in the grey market on Monday.
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Today's upmove in the stock market, is just a pull back, in our view. We remain cautious as long as 15000-15200 levels are not surpassed. Momentum traders should avoid aggressive longs, rather lighten up positions. In the coming days, we are expecting Nifty's levels of 14200-14000: Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking)
India’s largest brokerage house Zerodha was again making headlines on Monday morning, facing customer ire over complaints that prices and trading froze on its trading platform, resulting in losses to users of the discount broking service. HDFC Securities also reported glitches and blocked trading in NSE cash due to the said glitch. Customers took to social media websites to complain about the platform. Both, National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) were immediate to respond, claiming that their platforms were running smoothly, dousing concerns of another trading conundrum.
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Shyam Metalics and Energy Ltd has filed draft red herring prospectus (DRHP) with the capital markets regulator Sebi to raise Rs 1,107 crore through an initial public offer (IPO). The offer comprises a fresh issue of Rs 657 crore and an offer for sale (OFS) of up to Rs 450 crore. The firm may opt for Rs 250-crore pre-IPO placement, subject to consultation with merchant bankers.
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Domestic brokerage HDFC Securities blocked trading in NSE's cash segment for its clients for a limited period due to a technical glitch. The largest bourse NSE, which had suffered a nearly four-hour trading halt last week, due to telecom connectivity issues, said all the operations across its platforms are functioning smooth and normal. (PTI)
The February manufacturing PMI numbers corroborate our view that we are witnessing a strong rebound in the underlying economy which is expected to continue. While manufacturing has led the rebound so far, growth in the services sector too has started to improve and all eyes will be on the services PMI numbers which will be reported later during this week.: Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd
Indian goods producers reported a healthy inflow of new orders in February, a situation that underpinned a further upturn in output and quantity of purchases. Still, the data indicated that production growth could have been stronger should firms have appropriate resources to handle their workloads. This was evident from a quicker rise in outstanding business and another decline in inventories of finished goods.: Pollyanna De Lima, Economics Associate Director at IHS Markit
February PMI data showed another improvement in the health of the Indian manufacturing sector as firms responded to strong increases in new work intakes by lifting production, input buying and stocks of purchases. Employment decreased further, however, amid coronavirus disease 2019 (COVID-19) restrictions related to shift work. Strengthening demand for raw materials and semi-finished items exerted upward pressure on input cost inflation, which picked up to a 32-month high. Factory gate charges also rose, albeit at a modest and softer pace.
Posting 57.5 in February, the seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) highlighted a strong improvement in operating conditions that was broadly similar to that recorded in January (57.7). The headline figure remained above its long-run average of 53.6.
Maruti Suzuki reported strong growth in monthly sales numbers for the month of February 2021. Total sales for the month of February was up by 11.8% yoy to 1,64,469 units. Domestic sales for the month were up by 1.18% to 1,52,983 units while exports also registered a growth of 11.9% YoY tov11,468 units. Domestic sales growth was driven by the compact, UV and LCV segments which grew by 15.3%, 18.9% and 507.6% respectively. The mid level segment continued to struggle and registered degrowth of 40.6% YoY. Overall the numbers are encouraging and point to continued improvement in demand in the PV segment led by the compact segment. Post the January sales numbers we continue to maintain our positive stance on Maruti which is expected to be the biggest beneficiary of recovery in demand for entry level PV.: Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd
Rupee saw a volatile Friday and most exporters sold once it crossed 73.00 levels as the level was seen after a long time. The market has now become a buy on dips and any dips towards 73.10 will have to be bought with a stop at 72.80. Importers will now have to hedge their positions near to 73.10 while exporters can sell near to 73.90 which was high in the futures market on Friday. Importers should now cover at least one months import and exporters to hedge for near term as a few would have hedged for the far term. This is the opportunity which I was talking about when I had asked earlier exporters to hedge far term and keep near term open.: Anil Kumar Bhansali, Head- Treasury, Finrex Treasury Advisors
Historically, it has been observed that the recovery of USDINR is steady as seen in the past 11 months but depreciation is sharp as witnessed in the last week. Considering the present scenario and USDINR’s irrational move, it seems that the pair could have a pullback close to 73.20-73.30 levels before it begins to jump again. Well, here RBI’s action will be closely watched for any deprecation above 74.00 levels. However, even if central bank plays its part to curb volatility, any dips in the USDINR pair would be taken for buying by importers and now exporters would remain sideways to sell. This shall further build depreciation pressure on rupee and can take it towards 74.50 levels by March-end.: Amit Pabari, managing director, CR Forex Advisors
US bond yields rose to as high as 1.61% last week -- highest in the last 365 days, as inflation concerns surface with a recovering global economy. Along with this jump in bond yields, cheaper, less popular parts of the market are now outperforming those that have bettered even the benchmarks, according to Andrew Sheets, Chief Cross-Asset Strategist for Morgan Stanley. This trend in the market might help revive the old ‘buy low, sell high’ strategy, something that has been missing for a while, Sheets said in a podcast.
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We are at a crucial juncture; While the markets have opened with a gap up, there is a resistance for the Nifty between 14820-14950. The index could pause around these levels. Unless we do not get past this patch, any rally up should be looked at as an opportunity to short the markets for a target of 14350.: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The rupee to open bit down 73.62 against the US dollar in opening trade on this morning, yesterday the 10-year benchmark treasury cool down and retrace by 0.10 basis points. Asian equities have opened higher as US announced $1.9 stimulus package. Technically, USDINR March Future closed at 74.25 on previous trading session, market could see bearish retracement up to 73.70 levels and took support of the same and start rebounding towards 74.20 in today’s session.: Kshitij Purohit, Product Manager, Currency & Commodities at CapitalVia Global Research Limited
COMEX gold trades about 1% higher near $1748/oz after a sharp 2.6% decline in the previous session when it slumped to June 2020 lows. Gold bounced back on the back of progress on US stimulus front and correction in US dollar and bond yields. However, weighing on price is continuing ETF outflows. Gold plunged sharply and we are now seeing some relief rally however sharp gains are unlikely until US bond yields correct sharply or US stimulus is approved.: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
All the Nifty sectoral indices were trading in the positive territory led by nifty Media, Nifty IT and Nifty Auto indices, all up nearly 2 per cent.
AstraZeneca Plc has sold its 7.7% stake in Moderna Inc for more than $1 billion after the U.S. biotechnology company’s shares soared on the back of its coronavirus vaccine breakthrough, The Times reported.
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Stocks of blue-chip companies such as HDFC Bank, ICICI Bank, Reliance Industries Ltd (RIL), Infosys, Tata Consultancy Services (TCS) were major contributors to Sensex' up move.
BSE Sensex zoomed over 500 points to 49,600, while the broader Nifty 50 index surged 156 points to trade at 14,685.
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Billionaire investor Rakesh Jhunjhunwala has hailed Tesla CEO Elon Musk as a “true pioneer and entrepreneur”, however, he wasn’t quite convinced about his electric vehicle company’s valuation. “Elon Musk has not given the market cap of tesla. It is the public who has created it. This market cap is not going to last,” Jhunjhunwala told ET Now recently in an interview. However, he added that it doesn’t take away the entrepreneurial capabilities or performance of Musk.
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Shyam Metalics and Energy Ltd has filed a draft red herring prospectus (DRHP) with the market regulator Securities Exchange Board of India (Sebi) to raise over Rs 1,100 crore through an initial public offering (IPO).
The massive sell-off last Friday which saw the Nifty crash by 568 points indicates the market's vulnerability to negative triggers at high valuations. The massive FII selling of Rs 8295 crores is indeed a serious concern even though DIIs have turned buyers. Also, FIIs unwinding their longs and opening fresh shorts is a negative signal. The positive factor is the US 10-year yield settling at 1.41%, falling from a high of 1.61%. Stability in bond yields will calm markets. It is also important to appreciate the fact that the rise in yields also indicates a revival of economic growth. In this excessively volatile market, investors may wait for consolidation. Dips may be used to buy quality stocks in segments like financials & IT. Meanwhile, India is technically out of recession with the Q3 GDP data turning positive with 0.4% growth.: V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Index heavyweights such as ONGC, UltraTech Cement, Tech Mahindra, HDFC Bank, among others were top BSE Sensex gainers in the pre-opening session on Monday
In the pre-opening session on Monday, BSE Sensex zoomed 1,183 points to 50,283, while the broader Nifty 50 index surged 284 points to trade at 14,813.
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