Sensex gives up 51K amid broad-based sell-off, dips 435 pts; PSBs, auto hit

Topics MARKET WRAP | Markets | Sensex

Stock market updates: Extending their decline into fourth straight day, benchmark indices ended the week with over 1 per cent cut on the back of lossess in Eicher Motors (7 per cent), Nestle India (5.3 per cent), Divis Labs (5.4 per cent), and Cipla (5 per cent). 

On Friday, though, the frontline S&P BSE Sensex nursed losses of 435 points, or 0.85 per cent, to end the day at 50,890 levels. In the intra-day trade, the index tanked 800 points from the day's high to hit a low of 50,624. Only 11 of the 30 constituents ended the day in green with ONGC (down 5 per cent), SBI and Axis Bank (down 3.5 per cent each), ICICI Bank (3 per cent), Baja Auto (2.6 per cent), and Maruti Suzuki (2 per cent) being the top losers.

Gains in Dr Reddy's Labs (2.3 per cent), IndusInd Bank (2 per cent), HUL (1.7 per cent), and RIL (0.7 per cent) trimmed losses.

On the NSE, the Nifty50 index gave up the 15,000-mark and settled at 14,982 levels, down 137 points or 0.9 per cent. It hit an intra-day low of 14,898.

The broader markets, too, gave up their winning ways today and ended in the red. The S&P BSE MidCap index underperformed on the BSE and ended1.7 per cent down today. The SmallCap counterpart, meanwhile, settled 0.7 per cent lower.

Sectorally, none of the indices ended in the green zone today. The Nifty PSU bank index ended as the top laggard on the NSE, down 4.7 per cent, after surging nearly 6 per cent each over the past two days. That apart, Nifty Metal, Bank, and Auto indices skid 2 per cent each.    

Global markets
Shares struggled to avoid a fourth straight day of losses on Friday as data showed euro zone business activity slowing in February, while German and British 10-year bond yields touched multi-month highs, driven up by bets on rising inflation.

The pan European index was up 0.1 per cent, while London's FTSE index was 0.1 per cent weaker.

In Asia, MSCI world equity benchmark was up 0.1 per cent, MSCI's broadest index of Asia Pacific shares outside of Japan was down 0.1 per cent, while E-mini futures for the S&P 500 were broadly flat.


LIVE UPDATES

MARKET CLOSING COMMENT :: Deepak Jasani, Head of Research, HDFC Securities

ndian benchmark equity indices ended lower for the fourth consecutive day on February 19 with selling seen across the sectors. After making an intra day high at 1030 Hrs, Nifty kept falling through the day, barring the recovery post 1500 Hrs. At close, the Nifty was down 137.20 points or 0.91% at 14,981.80. For the week, the Nifty closed down 1.2%.
 
Nifty has corrected for four straight days after a sharp consistent rise seen over the past few weeks. The oscillators/indicators have now eased out of overbought region. A move above 15030-15060 early next week could take the Nifty 15240 over the next few days. On falls, 14753-14900 could act as a good support in the near term.

MARKET CLOSING COMMENT :: Vinod Nair, Head of Research at Geojit Financial Services

Consolidation continued as increasing volatility & weak global cues influenced investors to stand on the sidelines, leading the market to close below 15k level. PSU banks and mid-cap stocks which outperformed the market during the week attracted selling pressure today. Sentiments across the globe were also wounded by increasing bond yield, higher commodity price and the disappointing US data

MARKET CLOSING COMMENT :: Rusmik Oza, Executive Vice President, Head of Fundamental Research, Kotak Securities

The Nifty-50 & BSE Sensex declined by 1.2% this week as market mood became cautious on rising global and local bond yields. The broader markets that is NSE Mid Cap 100 Index and BSE Small Cap Index are both in the green this week. The US 10 Year Bond yields have risen from below 1% to 1.29% building in economic impact of the US$ 1.9 trillion stimulus package. In India too the 10 year bond yields have moved up from recent low of 5.76% to 6.13% which could mainly be linked to the higher fiscal deficit estimates. We expect domestic 10-year bond yields to be in the range of 6-6.75% in this calendar year. Oil & Gas & power stocks were major gainers this week. Almost 37 stocks from Nifty-50 lost ground this week with Pharma and select consumers having lost the most. This week PSU banks were in demand on reports of government likely to bring amendments to two legislations later this year to facilitate privatisation of public sector banks. We need to see if Nifty-50 holds the 15,000 level in the near term. The next major support for the Nifty-50 is the 50 DMA placed at 14,321 as of now.
 
 

TECH VIEW :: 15K to act as resistance now, says Rohit Singre, senior technical analyst at LKP Sec

Index closed a week on a negative note at 14982 with loss of more than one per cent and formed a bearish engulfing kind of candle pattern on weekly chart which represents trend reversal. As index managed to breached to its strong support of 15k mark which will acts as an immediate resistance now so above 15k mark we may see some relief otherwise we may see more downside levels of 14900-14750 on the other hand 15100-15170 will act as a strong hurdle on the higher side"

Market stats :: 249 scrips hit 52-week high today


STOCK OF THE DAY :: IDFC First Bank ends over 7% higher on fund raising plan


STOCK OF THE DAY :: ONGC slides 5% on profit-booking


Sectoral trends on NSE at Close


Sensex Heatmap at Close


CLOSING BELL

On Friday, though, the frontline S&P BSE Sensex nurses losses of 435 points, or 0.85 per cent, to end the day at 50,890 levels. 
 
On the NSE, the Nifty50 index gave up the 15,000-mark and settled at 14,982 levels, down 137 points or 0.9 per cent. It hit an intra-day low of 14,898.
 

$3.5-bn govt fund for finishing stalled housing projects begins to pay off

A 250-billion-rupee ($3.5 billion) fund set up by India’s government to complete stalled housing projects is set to deliver its first finished apartments in 2021, offering a template for a problem that has washed out savings of thousands of home buyers and bankrupted developers. READ MORE

Additional Budget allocation to wipe out fertiliser subsidy backlog: Ind-Ra

The credit metrics of fertiliser manufacturers in general and urea manufacturers in particular are likely to improve meaningfully in FY22 due to strong likelihood of clearance of subsidy backlogs after allocation of an additional Rs 62,600 crore fertiliser subsidy in the revised estimate of FY21, India Ratings and Research (Ind-Ra) said on Friday.
 
It will substantially reduce working capital debt and interest expenses. This will also encourage industry players to increase capital intensity to further improve their operating efficiencies, said Ind-Ra. READ MORE

Fall from intra-day high in BSE500 stocks in today's session

COMPANY DAY'S HIGH(RS) DAY'S LOW(RS) LATEST(RS) FALL(%)
Central Bank 26.40 21.64 21.64 -18.03
I O B 20.90 17.10 17.15 -17.94
Bank Of India 101.45 83.80 83.80 -17.40
Bank Of Maha 27.73 22.69 22.97 -17.17
Click here for the full list

Bears tighten grip! Sensex extends fall, down over 650 points


Financials top Sensex drags in today's session


Decisive break above Rs 47k needed for meaningful upside in gold: Rahul Gupta, Emkay Global

There is a negative correlation between gold and US bond yields. The selling pressure in gold is on hopes that US and global growth will recover more quickly as vaccines roll out. Also, the fears that additional fiscal stimulus will increase inflation are keeping US yields higher. So with yields rising and technical levels under fire, the fall may continue. MCX gold prices continue to trade with a negative bias. And the bearish outlook for the counter will stay until prices trade below 47000. Bounce will face resistance until then and prices will slip towards 45525/45110/44800 areas. A decisive break above 47000 is required for the bulls to make any meaningful comeback.

U-Turn! Nifty PSU Bank index erases gains, turns worst sectoral perfomer


Stock of this packaged foods company has zoomed 208% in six months

Shares of Hindustan Foods hit a new high of Rs 2,286, rallying 10 per cent on the BSE in intra-day trade on Friday in otherwise weak market. In the past one week, the stock of packaged foods company has gained 24 per cent after reporting the highest quarterly revenues and profit after tax (PAT) in its history for the quarter ended December 2020 (Q3FY21). READ MORE

MARKET UPDATE:: Nifty gives up 15k; India VIX up 5%


MARKET UPDATE:: Sensex extends losses, tumbles over 500 pts


European markets check

European shares edged higher on Friday as an upbeat earnings report from Hermes boosted confidence in a broader economic recovery, although the benchmark STOXX 600 was set to snap a two-week gaining streak on concerns about a rise in inflation.

The pan-European index was up 0.1 per cent, with Hermes shares jumping 5.7 per cent as the Birkin bag maker said sales recovered sharply in the fourth quarter. The stock was among the biggest gainers on the STOXX 600 and helped lift the European personal goods index by 0.7 per cent. 

Still, the STOXX 600 was set to end the week nearly flat following three straight sessions of declines as optimism around a better-than-expected earnings season gave way to fears that rising inflation could lead central banks to start tapering a raft of stimulus packages.
 
All eyes later in the day will be on flash readings of business activity data from across the euro zone.

(-- via Reuters)

Butterfly Gandimathi announces interim dividend of Rs 1.50/share

- March 3, 2021 has been fixed as the record date for the payment of said dividend

Poly Medicure gains 6% on successful fund raising via QIP issue

Shares of medical equipment maker Poly Medicure rose 6 per cent to hit a new high of Rs 689 on the BSE in Friday’s intra-day trade after the company successfully raised Rs 400 crore through qualified institutional placement (QIP) route. In the past one week, the stock has rallied 16 per cent, as compared to a nearly 1 per cent decline in the S&P BSE Sensex. READ MORE

Elon Musk says bitcoin is slightly better than holding conventional cash

Tesla Inc CEO Elon Musk on Thursday said that owning bitcoin was only a little better than holding conventional cash, but that the slight difference made it a better asset to hold. "However, when fiat currency has negative real interest, only a fool wouldn't look elsewhere," Musk said in a tweet. READ MORE

Nifty sectoral indices at this hour


NEWS FLASH :: Poly Medicure raises Rs 400 crore via QIP

The QIP committee at its meeting held today, i.e February 19, 2021, approved allotment of 76,33,587 equity shares of face value Rs 5 each to eligible qualified institutional buyers at the issue price of Rs 524 per share, aggregating to Rs 400 crore, the company said in an exchange filing. 

Bitcoin nears $1 trillion market value as crypto jump tops stocks, gold

Bitcoin is closing in on a market value of $1 trillion, a surge that’s helping cryptocurrency returns far outstrip the performance of more traditional assets like stocks and gold. The largest token has added more than $415 billion of value in 2021 to about $956 billion, data compiled by Bloomberg show. The Bloomberg Galaxy Crypto Index, which includes Bitcoin and four other coins, has more than doubled. READ MORE

Future Retail pays interest on 5.60% senior secured notes

- The company in an exchange filing said that on 18th February, 2021, it has made the payment of interest for the half year ended for an amount of $14 million on 5.60% senior secured notes due 2025.
 
- The company had initiated a grace period of 30 days on January 22, 2021 to pay the said interest 

Stocks that hit 52-week high on BSE today in an otherwise volatile market

Company PRICE(rs) 52 WK HIGH CHG(%)
A B B 1596.15 1633.75 3.77
Adani Enterp. 813.00 830.85 0.65
Adani Ports 668.55 676.70 0.67
Advanced Enzyme 401.60 416.50 2.53
Bank Of Baroda 96.25 99.80 0.68
» More on 52 Week High

NEWS FLASH :: Muthoot Finance board approves raising Rs 6,000 crore

Muthoot Finance at their meeting held today has considered and approved fund raising to the tune of Rs 6,000 crore by way of private placement of redeemable non-convertible debentures to be issued in one or more tranches. 
 
(Source: BSE filing)

Zydus Cadila gets USFDA final nod for low blood pressure drug Droxidopa

Zydus Cadila on Friday said it has received final approval from the US health regulator to market Droxidopa capsules, used to treat low blood pressure. Zydus Cadila has received final approval from the United States Food and Drug Administration (USFDA) to market Droxidopa capsules in the strength of 100 mg, 200 mg, and 300 mg, Cadila Healthcare said in a regulatory filing. READ MORE

Ashok Leyland starts commercial production of the buses at Vijayawada plant


Pumping in $33.8 bn so far this fiscal, FPIs' holding at record $592.5 bn

The maximum holding is in financial services sector at USD 191.3 billion, followed by software (USD 76.1 billion), oil & gas (USD 50 billion), automobiles & auto components (USD 26.9 billion, pharmaceuticals & biotechnology (USD 22.8 billion), sovereign (USD 21.7 billion--debt), household & personal products (USD 20.2 billion), capital goods (USD 19.8 billion), food, beverages & tobacco (USD 15.7 billion) and insurance (USD13.4 billion). READ MORE

MARKET UPDATE:: Small-caps outperform


IDFC First Bank gains 9%, hits 52-week high as board approves fund raising

Shares of IDFC First Bank hit a fresh 52-week high of Rs 63.05, up 9 per cent in the intra-day trade, on the BSE on Friday after the bank's board approved raising up to Rs 3,000 crore. "The Board at its meeting held on Thursday, February 18, noted the significant opportunities for growth of the Bank based on the strong capabilities the Bank has built and the strong outlook for economic recovery in India, and has approved raising of funds for an amount aggregating up to Rs 3,000 crore, in one or more tranches," it said in an exchange filing. READ MORE

SBI Cards m-cap tops Rs 1-trillion; Five factors that are driving the stock

With a market-capitalisation (m-cap) of Rs 1.02 trillion, State Bank of India-arm SBI Cards and Payment Services on Friday stood at 34th position in the overall m-cap ranking, BSE data showed. The firm’s m-cap is now more than that of Tata Motors, Shree Cement, and JSW Steel. READ MORE

Sector Watch :: Nifty Metal index worst sectoral performer


Magma Fincorp locked in 5% upper circuit; stock zooms 114% in 2 weeks

Shares of Magma Fincorp (MFL), on Friday, were locked in 5 per cent upper circuit at Rs 125.05; also its fresh 52-week high, on the BSE after rating agencies placed the rating of the company’s long/short term bank facilities on watch with developing implication. The trading volumes on the counter more-than-doubled with a combined 7.77 million equity shares changing hands on the NSE and BSE, till 11:02 am. READ MORE

NEWS ALERT :: Aurobindo Pharma gets US FDA nod to manufacture & market Droxidopa Capsules

>> Capsules are used for the treatment of orthostatic dizziness & lightheadedness


Wealthy PF investors may opt for debt funds as Budget changes tax rule

Wealthy investors who park their spare money in voluntary provident fund (VPF) accounts may consider moving to debt mutual funds after the Union Budget’s new proposals. Interest on provident fund (PF) was exempt from tax.
 
The Budget proposes that interest on the PF contributions (employee contribution) above Rs 2.5 lakh per annum be taxable with from April 1, 2021. READ MORE

Recovery from early lows in today's trade

COMPANY DAY'S LOW(RS) DAY'S HIGH(RS) LATEST(RS) RISE(%)
New India Assura 177.00 197.00 195.70 10.56
Berger Paints 685.00 763.00 756.70 10.47
Capri Global 335.50 371.60 368.25 9.76
Poly Medicure 631.00 684.25 684.25 8.44
Click here for the full list

NEWS ALERT :: Unichem Laboratories receives ANDA approval for Apremilast Tablets

The compnay received ANDA approval for its Apremilast Tablets, 10 mg, 20 mg and 30 mg from the United States Food and Drug Administration (USFDA) to market a generic version of Amgen’s Otezla (apremilast) Tablets, 10 mg, 20 mg, and 30 mg. Apremilast tablets are indicated for the treatment of adult patients with moderate to severe plaque psoriasis who are candidates for phototherapy or systemic therapy. 

Dabur India shares decline 2% after block deals

Shares of Dabur India were trading 2 per cent lower at Rs 507.55 on the BSE in intra-day trade on Friday after nearly 10 million equity shares of the personal products company changed hands via block deals. At 09:15 am, around 9.63 million equity shares representing 0.54 per cent equity of Dabur India changed hands on the BSE, the exchange data shows. The name of the buyers and sellers were not known immediately. READ MORE

BSE Smallcap gains 0.6%; gainers & losers from index


Market Update :: Sensex erases early losses, trades flat


Forex market closed for trading today

Domestic currency derivatives markets are closed on Friday on account of Chhatrapati Shivaji Maharaj Jayanti.

Nifty PSU Bank index up 47% in Feb on improved earnings, privatisation buzz

Shares of public sector undertaking (PSU) banks continued their upward movement with the Nifty PSU Bank index hitting a fresh 52-week high of 2,661 on the National Stock Exchange (NSE) in Friday's intra-day deals on amid improved earnings and privatisation hope. Thus far in the month of February, the Nifty PSU Bank index has zoomed 47 per cent, as compared to 10.4 per cent rise in the Nifty50 index. During the current week, the PSU Bank index has surged 20 per cent, against 0.7 per cent decline in the benchmark index. READ MORE


NEWS FLASH :: Crisil upgrades Escorts credit rating


Nikkei slips below 30,000 as rally fizzles before weekend

Japan's Nikkei share average slipped on Friday, falling back below the 30,000 mark it has recovered for the first time in three decades earlier this week, as profit-taking ahead of the weekend trumped broad economic recovery optimism. The Nikkei lost 0.95% to 29,947.42, moving further away from its 30-1/2-year high of 30,714.52 touched on Monday. The broader Topix shed 0.76% to 1,927.21.

(Source: Reuters)

NEWS FLASH :: 0.6% Dabur shares traded in a block

A media report on Thursday reported that Dabur promoter would sell 0.5 per cent equity stake to raise Rs 460 crore at Rs 509.65-520.05 per share.

Most active stocks by volume

Company PRICE(rs) CHG(%)
Dabur India 509.65 -2.03
Vodafone Idea 11.62 0.35
Central Bank 24.68 2.66
I O B 20.08 5.68
Punjab Natl.Bank 44.90 2.39
» More on Most Active Volume

Financials, IT stocks top Sensex drags in early trade


Ashok Leyland slumps 3%


Result Reaction :: Ambuja Cements holds gains

>> The company reported a consolidated net profit of Rs 732 crore in the December quarter, up 24 per cent from same period last year on the back of increased revenue.


BUZZING :: Rossari Biotech hits fresh 52-week high


Happiest Minds Tech continues its uptrend


DLF slides over 1% despite arm acquiring stake in US-based Hines

>> The company's rental arm DCCDL has completed the acquisition of the entire 52 per cent stake of US-based Hines in a premium commercial project in Gurugram for Rs 780 crore.


Oil India gains 3% in a weak market

>> Oil India & Engineers India will together bid for acquiring 61.65 per cent stake of Bharat Petroleum Corporation Limited (BPCL) in Numaligarh Refinery Limited.


IDFC First Bank trades higher on fund raising plan

>> The company said its board has okayed raising up to Rs 3,000 crore through various means.


Sectoral trends on NSE :: Banks, metals, auto under pressure


Sensex Heatmap :: RIL, HUL support indices


Opening Bell


Opening Bell


Commodity Heatmap :: Crude futures down 2%, Silver 1%


Top gainers and losers on S&P BSE Sensex at Pre-open


Markets at Pre-open


Markets at Pre-open


Bull Spread Strategy on Indian Oil Corp

Bull spread Strategy on Indian Oil
 
Buy IOC Feb 100 Call at Rs 2.30 & simultaneously sell Feb 105 Call at Rs 0.95
 
Lot Size 6500
 
Cost of the strategy Rs 1.35 (Rs 8775 per strategy)
 
Maximum profit Rs 23725 If IOC closes at or above 105 on 25 Feb expiry.
 
Breakeven Point Rs 101.35 READ MORE

Stocks to watch: Bharti Airtel, IDFC First Bank, NMDC, Ambuja Cements, DLF

IDFC First Bank: The company said its board has okayed raising up to Rs 3,000 crore through various means.
 
Oil India & Engineers India: These companies together will bid for acquiring 61.65 per cent stake of Bharat Petroleum Corporation Limited (BPCL) in Numaligarh Refinery Limited.
 
Telecom stocks: Latest TRAI data showed that Airtel added as many as 5.5 million regularly paying users in December over the preceding month. Reliance Jio, meanwhile, added nearly 3.2 million subscribers and Vodafone Idea Ltd. lost 1.5 million subscribers. READ MORE
 

Bulk deals on the BSE as on Thursday

Bulk deals on the NSE as on Thursday

FII/FPI & DII trading activity on NSE, BSE and MSEI


Rupee check

Source: Bloomberg


Oil drops as investors gauge big chill impact on US refineries

Oil prices slid as much as 2% in early trade on Friday, adding to overnight declines, on worries that refineries shut by a big freeze in the US South will take some time to revive operations and dent crude demand.
 
US West Texas Intermediate (WTI) crude futures fell $1.21, or 2%, to $59.31 a barrel, after declining 1% on Thursday.
 
Brent crude futures dropped $1.07, or 1.7%, to $62.86 a barrel, after declining 0.6% on Thursday.

(Source: Reuters)

Weakness to extend?

At 8:30 am, the SGX Nifty index was trading 74 points down at 15,041 levels.

US stocks

On Wall Street, stocks fell as investors stepped away from large technology firms and a surprise jump in US jobless claims injected some skepticism into the market that had seen record highs earlier in the week. The Dow Jones fell 0.38 per cent, the S&P 500 lost 0.44 per cent, and the Nasdaq 0.72 per cent.

Asian market check

Asian stocks pulled back on Friday. Australia’s benchmark ASX 200 index and Hong Kong's Hang Seng index dipped over 1 per cent, each, in early trading, while Japan’s Nikkei fell 0.9 per cent.

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