Nifty Pharma and Nifty Financial Services were the top sectoral losers. Image: ReutersShare Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and Nifty 50 have ended in the negative territory for the second straight trading session on Monday, due to rising COVID-19 cases and bond yields. BSE Sensex ended 398 points or 0.78 per cent lower at 50,395.08, while the broader Nifty 50 index fell 101.45 points or 0.67 per cent to end at 14,929.50. Top BSE Sensex losers were Bajaj Finsv, Bajaj Auto, Bajaj Finance, Larsen & Toubro (L&T), Asian Paints, Dr Reddy’s, ICICI Bank, HDFC Bank among others. On the contrary, Tech Mahindra, Power Grid Corporation of India, IndusInd Bank, HCL Technologies, NTPC, State Bank of India (SBI) and Titan Company shares finished their trade in the green. Barring, Nifty Metal, Nifty IT and Nifty PSU Bank indices, all the sectoral indices settled in the red. Nifty Pharma and Nifty Financial Services were the top sectoral losers.
Highlights
Domestic equities witnessed sharp sell-off for the second consecutive trading day as mounting concerns about resurgence of Covid-19 cases in various part of the country and rising bond yields made investors jittery. Further, unexpected contraction in IIP data for Jan’21 and sharp spike in CPI print also weighed on sentiments. A sharp increase in US treasury yields and recent spike in fresh Covid-19 cases in various parts of the country have clearly dented investors’ sentiments. Notably, outcome of Fed policy meeting will be crucial for domestic markets in coming days. While spread of 10-Year USA treasury yields and India’s GSec Yield at 460bps and dollar index below 92 still offer comfort, any sharp deterioration in these prints hereon may pose a risk to the domestic market. However, given sharp rise in government’s capital expenditures for FY22E along and various reforms to stimulate investment and consumption activities, underlying strength of domestic equities remains intact, and India is expected to witness a sharp economic recovery in FY22 and thereafter. :Binod Modi, Head Strategy at Reliance Securities
BSE Sensex ended 398 points or 0.78 per cent lower at 50,395.08, while the broader Nifty 50 index fell 101.45 points or 0.67 per cent to end at 14,929.50.
Though some adjustment in the provisional inflation numbers is normal, but this time the January 2021 WPI figures has been revised to 1.95% from 1.22%. This can be because not all representative prices were captured and/or the prices captured were under reported. Normally, one ignores the revised figures, which are in fact more important sometimes. Our views still the same on RBI’s MPC stand. We still hold our view of RBI’s Monetary Policy Committee’s stance of accommodative policy with no change in short term interest rates when they meet in April 2021. However, some emphasis would be given on rising fuel prices and its impact on other products.: Krupesh Thakkar, CFA, HoD – Financial Markets, ITM B-School
Indian share market witnessed a sharp rebound with the onset of unlocking and resumption in businesses in the country, since June 2020. The broader market indices have outperformed the equity benchmarks on the back of recovery in economic activity and COVID-19 vaccine optimism. Last week on Friday, the S&P BSE Small-cap index hit a new high of 21,411 in intra-day trade. The index surpassed its previous high of 21,389 hit on March 3, 2021. While S&P BSE Midcap index scaled a new 52-week high of 21,085.51 in intraday deals on March 4 this year. So far this month, the S&P Smallcap index has surged 3.56 per cent, as against a rise of 1.8 per cent in BSE Sensex and Nifty 50.
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Post capital raise, Suryoday’s capital ratio (Tier I ~50%) will be far higher than that of peers. However, its sub-par liability profile and MFI-dominant asset portfolio with rising risks due to regular asset quality shocks could put pressure on growth and return ratios in the near to medium term. At the upper price band of Rs305, IPO valuations will be 2.6x pre-IPO/private placement and 2.2x Dec’20 P/ABV post-IPO, adjusted for pro forma NNPAs and RSA (vs. larger listed SFBs like Ujjivan at 2.6x ABV and Equitas at 2.4x). Among SFBs, we rather prefer Equitas (Buy) for its healthy asset diversification, better liability profile and reasonable valuations. We have a Sell rating on Ujjivan: Emkay Global Financial Services
Economic activity remains patchy as reinforced by a lower IIP reading. Meanwhile, a higher CPI reading despite stable food prices highlights the challenges to the inflation outlook amid rising commodity and oil prices, and demand-side pressures. While inflation should broadly remain within the RBI’s target band and thus support the MPC’s accommodative stance for now, the challenges for MPC members will continue to mount given the surging core inflation trajectory.: Kotak Institutional Equities
The IPO is valued at 58.4x of FY20 EPS, which looks to be reasonably priced. We believe the organized players in jewellery segment should get healthy traction in the coming years due to increased preference for branded jewellery. Further, KJIL’s focus on increasing revenue contribution from high-margin studded jewellery is expected to improve its overall margin. This along with continued addition of new showrooms is expected to ensure a sustainable growth for KJIL in the long-run. Further, robust OCF yield looks impressive. Hence, we recommend SUBSCRIBE to the issue.
Reliance Industries and banking stocks were among the worst performers on Sensex. RIL was down 2% while major banks like ICICI Bank and Axis Bank were down more than 3% each.
"MTAR Technologies had a bumper opening given very strong demand for the IPO. There was very strong demand for the shares given that the company is uniquely positioned catering to marquee clients like ISRO, DRDO, NPCIL, DRDO, Bloom Energy and Rafael. At the higher end of the price band the company was offering its shares at a P/E multiple of 49.1xFY20 EPS which was reasonable considering the growth prospects for the company. However at CMP of Rs 1,115 the stock is trading at P/E multiples of 95.3xFY20 EPS which is expensive and captures near term growth potential thus leaving very little upside from current levels. Hence we would recommend book profits at current levels," said Jyoti Roy - DVP- Equity Strategist, Angel Broking.
Dividend plays took a significant hit this fiscal year as payouts were cut or halted by companies as they preferred holding on to cash amid a pandemic. With normalcy looking closer than ever before, dividends could be back on track. “Consensus expects that Europe will not recover back to the FY18 DPS level even by FY22. Over the same period, Asia and US dividends will be 20% ahead,” said analysts at Jefferies. The financial performance of firms has been improving over the quarters now as they step out of the pandemic.
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The market is in long term upward movement. NIFTY is trading in upward channel and it is still into the channel. The market is showing some tiredness at current levels and it may touch 14630-14550 levels. Watch this level carefully because once it is broken on closing basis, market trend will be change from upward to downward direction and next level of support in the market is 13730/13600 levels.So, avoid taking any long-term position in the market at current levels and decrease your long position.: Escorts Securities
"At the higher end of the price band, Anupam Rasayan IPO is aggressively priced at ~80 times FY20 Earnings Per Share (on a trailing basis), and around ~69 times annualised EPS of 9MFY21. This is expensive considering the fact that listed peers such as PI Industries (current PE of ~54.2) and Astec Life Sciences ( current PE of ~29), and Navin Fluorine (PE of ~30), with better return ratios, are trading at lower valuations. As is the case in the IPO season, good businesses are getting priced at aggressive valuations, and Anupam Rasayan is no exception. The management has said that they have completed major Capex plans of Rs. 800 crore in the last three years and expanded capacities are in operations, the company has started yielding benefits with a CAGR of 24.29% in total revenue from FY18 to 9M-FY21 and trends are expected to continue. Given the company’s steady topline growth, stable margins, good return ratios, strong market share position, and good growth outlook we remain positive on the prospects of the issue," INDmoney said in a report.
BSE Sensex tumbled 849 points or 1.67 per cent to 49,943, while the broader Nifty 50 index was ruling at 14,798 in the late morning deals.
Delhi-based online travel company Easy Trip Planners is expected to finalise the basis of the allotment of the IPO on Tuesday, March 16, 2021. The Rs 510-crore IPO was subscribed 160 times with non-institutional investors subscribing to their reserved portion 384 times. The issue was sold in a price band of Rs 186-187 per share. In the grey market today, Easy Trip Planners shares were trading at Rs 347 apiece, implying a premium of Rs 160 or 85.56 per cent, according to data provided by UnlistedArena.com, which tracks the grey market.
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With the improved US economic outlook with the passage of the most awaited stimulus, equities are on their ravishing ride and dollar index has been remained sideways but above 91.50 crucial levels, keeping the upside bias on. Back home, RBI’s move caught the eyeballs as after being on a buying spree and then remaining silent consecutively for the past 3 weeks, the reserves data released previous week showcased that the central bank has sold near $4 billion. This move came after the rupee had shown dramatic weakness due to global risk-off, thereby making it evident that the central bank is on toes with its primary objective of curbing unprecedented volatility on either side. Well, it seems like the bottom for rupee is protected near 72.50 levels in the face of cautiousness ahead of rising global yields; and the near term top shall be formed around 73.50 levels given by channel of inflows pertaining to bond issues, QIP’s and IPO’s by corporates. Hence, the pair remains well within the range of 72.50-73.50 levels for the next couple of sessions.: CR Forex Advisors
Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Hyderabad: Petrol and diesel prices remained steady for the sixteenth consecutive day on Monday across major cities in the The state-run oil refiner Indian Oil Corporation (IOL) raised the fuel prices last on February 27, 2021, petrol by 24 paise and diesel 15 paise. Petrol prices in the national capital, Delhi, stand at Rs 91.17 per litre while diesel is available for Rs 81.47 per litre.
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Shares of MTAR Technologies listed on the stock exchanges today at a strong premium over its IPO price, despite the benchmark indices plummeting. MTAR Technologies began trading at Rs 1,063.9 per share, an 85% premium over the issue price of Rs 575 apiece. MTAR Technologies nuclear, defence and aerospace equipment, fabrication facilities and fuel cells. On listing, shares of the company were quoting a market capitalisation of Rs 3,272 crore. Through the IPO, MTAR Technologies raised Rs 596-crore. The issue was subscribed 210 times
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The index is now close to nudging the lower end of the range which is 14750-14800. If we break this on a closing basis, we could see southward movement and the next potential target could be 14450-14500. If we reverse from current levels, the markets will continue trading in a choppy and sideways fashion until it does not get past 15250-15300. In summary, extreme caution is advised and traders should be very careful in taking large positions. Due to the volatility, the stops would be large and sometimes not affordable.: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
COMEX gold trades about 0.23% higher near $1724/oz after a 0.2% decline in the previous session. Gold edged up as the US dollar index and US 10-year bond yield eased marginally amid Treasury Secretary Janet Yellen statement that US inflation risks remain subdued despite the Biden administration stimulus. However, weighing on gold is weaker investor interest and general strength in equity markets. Gold may continue to sway along with US dollar however a sharp rise is unlikely until yields correct sharply.: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Market trends are unclear. While the dollar index cooling to 9.16 is a positive for capital inflows the 10-year bond yield hovering around 1.64 is a concern. Also the rise in core inflation, mainly pushed up by commodity price rise, is a concern. Looks like we are at the trough of the interest rate cycle. Recent Covid resurgence is another concern. An economy facing stocks are set to benefit from the rebound in growth. Investors should always remember the fact that market valuations are high & therefore vulnerable to correction: V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
All the Nifty sectoral indices were trading in the red today. Nifty Financial Services, Nifty Metal, and Nifty Bank indices were down over one per cent.
ONGC shares gained the most, rising over 1 per cent. Power Grid Corporation of India, Maruti Suzuki, Tech Mahindra, Asian Paints were among the top index gainers.
The top BSE Sensex losers were Housing Development Finance Corporation (HDFC), HDFC Bank, State Bank of India (SBI), Kotak Mahindra Bank, Reliance Industries Ltd (RIL).
BSE Sensex fell over 100 points to trade at 50,661, while the NSE's Nifty 50 index gave up the crucial 15,000 in the opening deals to trade at 14,979.75.
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Axis Bank, Titan Company, Tech Mahindra, ONGC, NTPC were among top BSE Sensex gainers in the pre-opening session on Monday.
BSE Sensex was trading over 50,800 and the broader Nifty 50 index surged 105 points to trade over 15,100 in the pre-opening session on Monday.
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Nifty futures were trading 66 points or 0.44 per cent higher at 15,095 on Singaporean Exchange, suggesting gap-start for BSE Sensex and Nifty 50 on Monday. February’s Wholesale Price Index (WPI) numbers are scheduled to be released later in the day. Investors will continue to keenly watch updates on COVID-19 situation, oil prices, movement in rupee and other global cues.
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Commodity prices traded mixed during the week passed by with Bullion prices witnessed recovery from the recent lows. Crude oil prices ended down from reversing from the resistance levels while base metals traded with lower range on China policy tightening fears.
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On Wall Street, Dow Jones Industrial rose to end higher for the fifth straight day on Friday and the S&P 500 closed slightly higher. The Nasdaq Composite dropped 0.59 per cent to end at 13,319.87.
Asian peers were seen trading mixed in early trade on Monday with Japan’s Nikkei up 0.32 per cent while the Topix index gained half a per cent. South Korea’s Kospi was flat to negative, down 0.07 per cent.
Nifty futures were trading 66 points or 0.44 per cent higher at 15,095 on Singaporean Exchange, suggesting a gap-up start for BSE Sensex and Nifty 50 on Monday.
Laxmi Organic IPO will open for investors on Monday. The company is looking to raise Rs 600 crore through the issue, which is an amalgamation of a fresh issue and an Offer For Sale (OFS) by existing shareholders. Craftsman Automation IPO will also open on Monday The offer consists of a fresh issue of equity shares of Rs 150 crore and OFS of up to 45.21 lakh equity shares.
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MTAR Technologies Rs 596-crore IPO, which was subscribed 201 times, will make its stock market debut on Monday, March 15, 2021. During IPO, qualified institutional investors subscribed their reserved portion 164.99 times and non-institutional investors 650.79 times, while the retail category was subscribed 28.4 times.
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Domestic equity markets enter the week’s first trading session after ending in red on Friday. S&P BSE Sensex is currently sitting at 50,792 while the 50-stock NSE Nifty is just above 15,000 mark. Technically Nifty may have turned weak for the near term with the correction recorded on Friday, said Subash Gangadharan, Senior Technical & Derivative Analyst, HDFC securities. Dalal Street could resume its upward march today with SGX Nifty trading 75 points higher, hinting at a gap-up start for markets. Among Asian peers, apart from Shanghai Composite most of the stock markets were trading with gains.
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