Sensex, Nifty LIVE Updates on March 1: Domestic equity benchmarks Sensex and Nifty registered significant gains on Monday, tracking positive cues from positive global equities. Reversing the trend, Sensex was rising 815 points higher at 49,915 and Nifty gained by 235 points to 14,760. SGX Nifty on the Singapore Exchange was rising by 90 points, indicating a positive trend in domestic grounds today. Last Friday, Sensex ended 1,939 points lower at 49,099 and Nifty fell by 586 points to 14,529. The market breadth, indicating the overall health of the market was positive on the BSE, with 1,774 shares rising, 593 shares falling and a total of 131 unchanged shares. The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 5.56% to 26.57. The S&P BSE Mid-Cap index was up 0.74%, while S&P BSE Small-Cap index was up 1.17%. The BSE's market capitalization rose to Rs 203 lakh crore. Sectorally, all the indices were rising, with 1.8% rise in media, financial services, PSU Bank and private banking indices. The market also reacted to encouraging Q3 GDP data announced after market hours on Friday. Meanwhile, Markit Manufacturing PMI for February will be declared today, 1 March 2021.
Here's a look at the LIVE updates of the market action on BSE and NSE today
12.09 PM:Bharti Airtel share drops over 4%
Bharti Airtel share price dropped 4.42% to the day's low of Rs 532.5 today. The company informed that its wholly owned subsidiary Airtel Digital has agreed to subscribe to 5,000 equity shares (10%) in Ferbine Private Limited on February 25, 2021.
11.58 AM: Gold outlook
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said," As the dollar pushed higher, Gold prices burst through trend line support. The strong yield change during the week weighed on the yellow metal's price. Despite a decrease in US treasury yields, gold prices dropped, with the 10-year treasury dropping to 1.49% from a high of 1.61% on Thursday. Personal income in the United States rose in January, but consumer spending was slightly lower than expected. Personal income jumped 10% after a 0.6% increase in December, beating expectations that it would rise by 9.5%.
11. 45 AM: Manufacturing PMI outlook
Jyoti Roy - DVP- Equity Strategist, Angel Broking said," Indian manufacturing PMI for February at 57.5 remained at similar levels of 57.7 in January and points to continued improvement in the economy. The headline figure remained well above the long term average of 53.6. Continued improvement in the demand environment led to further increase in new orders which led to further increase in production and inventories. New export orders also continued to improve though the pandemic led supply chain disruptions did have some adverse impact on international demand for Indian goods. However employment decreased further due to restrictions Covid restrictions related to shift work while input cost inflation increased to a 32-month high. 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."
11. 32AM: MTAR Technologies IPO
Geojit Financial said in its note today,"Over the next five years, the private sector will receive the mandate for ~70% of all the upcoming space missions of ISRO which is positive for MTAR. MTAR will start manufacturing Hydrogen boxes and electrolyzers for Bloom Energy, a key player in fuel cell technology. At the upper price band of Rs.575, MTAR is available at a P/E of 47.3x (annualized basis on FY21E EPS of Rs.12.2) which is aggressively priced. With no listed peers and a positive sentiment in the space & defence sectors due to Make in India and Atmanirbhar Bharat with limited competition for the products they manufacture, we assign a Subscribe rating, with a long term perspective."
11. 27 AM: DLF share price rises 1%
DLF share price traded 1% higher at Rs 305.80 today. The realty firm plans to raise up to Rs 395 crore through issue of debentures. In a regulatory filing, the company informed that the proposal will be discussed on March 3 at a meeting of the finance committee of the board of directors.
11. 12AM: RIL shars rise over 1%
Reliance Industries share price gained over 1% to Rs 2114.45, its intraday high. This was after Strategic Business Ventures Ltd (RSBVL), a wholly owned subsidiary of Reliance Industries Ltd (RIL), announced it has raised its shareholding in investee company skyTran Inc to 54.46 per cent, acquiring additional equity stake for consideration of $26.76 million (Rs 196.9 crore).
11.01 AM: Nifty Outlook
Geojit Financial said in its note,"We had opened last week with a 14740 view, which was subsequently extended to 14481. Having met both the targets, we are inclined to play a consolidation before riding on the next directional wave. Fulfilment of the targets allow for a pull back meanwhile, which could extend into the 14770-900 region, but a push beyond the same could complete the upside breakout of a flag pattern that the declines from the Feb peak is seemingly fitting in. This would also mean that the +16000 views are back in the radar."
10. 53 AM: Global markets buoyed today
Asian markets are trading sharply higher bouncing back from Friday lows as bond yields fell ignoring Chinese manufacturing activity growth which came at 50.9 Vs.51.3 in Jan.
US markets closed sharply lower on Friday led by technology stocks as selloff in global bonds intensified and debt from UK to Australia getting squeezed.
European markets closed lower on Friday pulled down by rising bond yields making bonds attractive compared to equities and saw investors fleeing highly flying stocks.
10. 42 AM: MTAR Technologies IPO
"MTAR Technologies Limited (MTAR) is a leading precision engineering solutions company engaged in the manufacture of mission critical precision components with close tolerances (5-10 microns), and in critical assemblies, to serve projects of high national importance, through their precision machining, assembly, testing, quality control, and specialized fabrication competencies, some of which have been indigenously developed and manufactured.
At the higher price band of Rs 575, the stock is valued at 20x FY20 earnings of Rs 28.3 and commands premium considering its healthy order book, visibility of topline growth, competitive edge, superior profitability as compared to peers, return ratios, wide clientele spread across the globe, sound R&D base and technological progress. We recommend investors to SUBSCRIBE to the IPO of MTAR."
10.35 AM: Weekly outlook
Ajit Mishra, VP - Research, Religare Broking said,"The coming week marks the beginning of the new month also and participants will be eyeing important domestic data alongside the global cues. First, the auto sales data will start pouring in from March 1. On the economic front, Markit Manufacturing PMI and Market Services PMI data scheduled on March 1 and March 3 respectively. Markets will first react to the GDP data which came in after the market on Friday. The economy grew marginally in the third quarter at 0.4%, after facing a contraction in the previous two quarters. Going ahead, the rising bond yields remain a key concern for equity markets worldwide. Although the recent Fed statements have been comforting.
Indications are pointing towards further slide in the Nifty and the next support at 14,400 and 14,200 levels. We expect volatility to remain high so traders should maintain extra caution in risk management aspects. The prudent strategy would be to use rebound to create shorts using options instead of naked futures."
10.22 AM: Market outlook
On markets opening --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"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."
10. 13 AM: FII action
Foreign portfolio investors (FPIs) sold shares worth Rs 8,295.17 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,499.70 crore in the Indian equity market on 26 February, provisional data showed.
10.04 AM: Market update
The market breadth, indicating the overall health of the market was positive on the BSE, with 1,774 shares rising, 593 shares falling and a total of 131 unchanged shares. The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 5.56% to 26.57. The BSE's market capitalization rose to Rs 203 lakh crore. Sectorally, all the indices were rising, with 1.8% rise in media, financial services, PSU Bank and private banking indices. The market also reacted to encouraging Q3 GDP data announced after market hours on Friday. Meanwhile, Markit Manufacturing PMI for February will be declared today, 1 March 2021.
9.57 AM: Global markets
US stocks ended on a mixed note on Friday after the House passed a $1.9 trillion Covid relief bill, the American Rescue Plan Act of 2021, early Saturday. The Senate will now consider the legislation.
The Dow Jones Industrial Average tumbled 469.64 points, S&P 500 lost 18.19 points and the Nasdaq Composite Index added 72.91 points.
Asian stocks were trading higher on Monday, as data releases showed China's manufacturing activity growth slowing in February. Meanwhile, South Korea's markets were closed on Monday for a holiday.
9. 41 AM: Encouraging Q3 GDP data
Traders said the market also reacted to encouraging Q3 GDP data announced after market hours on Friday.
Indian economy reported growth in the December quarter after two quarters of contraction. The nation's Gross Domestic Product (GDP) saw revival, albeit marginally, as economic activities resumed after a long and arduous lockdown and overall sentiment improved with the rollout of vaccination drive. As per government data, India's GDP increased 0.4 per cent during the third quarter ended December 31, 2020.
The output of eight core infrastructure sectors grew marginally by 0.1% in January, mainly due to growth in the production of fertiliser, steel and electricity. The core sectors had expanded by 2.2% in January 2020, according to the provisional data released by the Commerce and Industry Ministry on Friday.
Meanwhile, Markit Manufacturing PMI for February will be declared today, 1 March 2021.
9. 30 AM: Morning view on the market
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said,"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."
9. 22 AM: Opening session
Domestic equity benchmarks Sensex and Nifty registered significant gains on Monday's opening session, tracking positive cues from positive global equities. Reversing the trend, Sensex was rising 600 points higher at 49, 701 and Nifty gained by 195 points to 14,720. SGX Nifty on the Singapore Exchange was rising by 90 points, indicating a positive trend in domestic grounds today.
9. 10 AM: Market outlook
Reliance Research said in its note today," NSE-NIFTY failed to continue its prior daily rising trend. On Friday, the index extended loss post gap down opening amidst weaker global cues and also, due to selling across the board. Overall market breadth turned in favour of the bears and negative trend observed across the sectors. Due to sudden fall in the index, major technical indicators on the short-term as well as near-term timeframe chart turned in favour of the bears. This could drag the index towards 14,300-level initially and 14,000-level subsequently. On the higher side, the index will face a hurdle at 15,000-level.
As for the day, support is placed at around 14,358 and then at 14,187 levels, while resistance is observed at 14,810 and then at 15,090 levels."
9.00 AM: Currency Outlook
Kshitij Purohit, Product Manager, Currency & Commodities at CapitalVia Global Research Limited said,"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."
8. 50 AM: Closing on Friday
Sensex fell 1,939 points on Friday, making it the sixth biggest single-day drop (pointwise) ever for the 30-share index. After three straight sessions of gains, the BSE benchmark ended 1,939 points lower at 49,099, amid heavy selling in global equities.
Similarly, the NSE 50-share index Nifty50 fell by 586 points to 14,529.
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