Bears return to D-Street after 3 days; Sensex tanks 598 pts, ends below 51K

Topics MARKET WRAP | Markets | Sensex

Stock market updates: The bears made a comeback on Dalal Street, reminding investors of last week's drubbing, as concerns over spike in bond yields rekindled on Thursday. The US bond yields which have become influential on stock prices, globally, spiked to 1.48 per cent, while in India, the yield on 10-year benchmark government bond rose to 6.26 per cent today, its highest level since April 2020.

Effectively, the Euro STOXX 600 was down 0.5 per cent and London's FTSE slipped 0.6 per cent. In Asia, the MSCI world equity index, which tracks shares in 49 countries, lost 0.5 per cent, the MSCI's ex-Japan Asian-Pacific shares lost 1.8 per cent, and Japan's Nikkei fell 2.1 per cent.

Back home, the benchmark indices tumbled over 1 per cent to end the session at day's low. The S&P BSE Sensex settled the day at 50,846 levels, down 598 points or 1.16 per cent. The Nifty50, meanwhile, defended the 15,000-mark and closed at 15,081 levels, down 165 points or 1.08 per cent.

As per technical charts, any breach below the 15,000-mark on the Nifty may create shorting opportunities. As regards Sensex, any decisive breakdown below the 50,000-mark may eradicate upside bias. READ MORE

Among individual stocks, UltraTech Cement, Dr Reddy's Labs, Asian Paints, HUL, and Maruti Suzuki, all up between 0.02 per cent and 4 per cent, were the only gainers on the Sensex. Adani Ports, Shree Cement, Grasim, SBI Life, and Wipro, up in the range of 0.8 per cent to 3 per cent, were the additional gainers on the Nifty.

On the downside, HDFC, Bajaj Finance, L&T, Axis Bank, HDFC Bank, and SBI tanked up to 2.5 per cent to end the day as top laggards on the BSE barometer. JSW Steel, Hindalco, Tata Steel, Tata Motors, and Coal India, meanwhile, dragged the Nifty index.

That said, the broader markets held their ground firm in this feeble market. The S&P BSE MidCap index settled 0.5 per cent higher, supported by gains in Adani Power, Concor, BHEL, AU Small Finance Bank, and IDBI Bank.

The S&P BSE SmallCap index, on the other hand, closed 0.8 per cent higher. 

LIVE UPDATES

TECH VIEW :: Rohit Singre, senior technical analyst at LKP Securities

Index opened a with a gap down on weak global cues though we saw some bounce but again in the second half we witnessed profit booking and index closed a day at 15080 with loss of one percent and formed a bearish candle on the daily chart. Going forwards index has one good support at 15k mark if managed to hold above that then some pullback otherwise more profit booking can be seen, on the higher side 15150-15200 zone will be stiff hurdle

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

Domestic markets along with its global peers mirrored the wounded trend of the US market. The surge in US bond yields added selling pressure in technology stocks, forced Wall Street to close lower. Blue-chips were much affected by the weak global cues, but Mid & Small caps with its increased investor confidence retained its positive momentum
 

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

Markets opened weak on muted global cues and drifted lower during the afternoon even as we saw heightened investor interest in PSU stocks on hopes of privatisation and asset monetisation. In the broader market Sugar stocks registered smart gains for the second day in a row

Stocks that dragged the Sensex lower today


Sectoral trends on NSE at Close


Sensex Heatmap at Close


CLOSING BELL

The benchmark indices tumbled over 1 per cent to end the session at day's low. The S&P BSE Sensex settled the day at 50,846 levels, down 598 points or 1.16 per cent. The Nifty50, meanwhile, defended the 15,000-mark and closed at 15,081 levels, down 165 points or 1.08 per cent.
 

$500 mn deal with Google pulls Infosys in focus; analysts see 35% upside

The stock, however, has lagged benchmark Nifty on a year-to-date basis as it added 7 per cent against a 9 per cent rise in the Nifty50. The underperformance could soon come to an end, believe analysts, who eye an up to 35 per cent upside in the stock from current levels. READ MORE

Gold is down 11% so far in 2021; time to exit Muthoot Fin, Manappuram Fin?

Gold futures were trading at Rs 44,849 per 10 grams on the MCX on Thursday, having fallen nearly 11 per cent so far in CY21. Besides, prices have corrected by more than Rs 10,000 per gram from all-time high of Rs 56,200 made in August 2020 as elevated US Treasury yields raised opportunity cost for holding it compared to bonds.
 
Moreover, projection of positive global growth coupled with improving economic conditions, following the roll-out of coronavirus vaccine, further dampened the safe-haven’s appeal. READ MORE

Cement shares in demand; UltraTech, Ambuja, Ramco Cement hit new highs

Orient Cement rallied 13 per cent to Rs 113.65, also its 52-week high, on the back of two-fold jumped in trading volumes. India Cements, too, hit a 52-week high of Rs 187, up 7 per cent on the BSE. UltraTech Cement, Star Cement, Shree Cement, Ambuja Cements, ACC, JK Cement and JK Lakshmi Cement were up between 3 per cent and 5 per cent. In comparison, the S&P BSE Sensex was down 0.87 per cent at 50,991 points, at 02:51 pm. READ MORE

Balrampur Chini hits fresh record high; stocks rallies 18% in 4 days

Shares of Balrampur Chini Mills, in Thursday's intra-day deals, soared 8 per cent on the BSE and hit a record high of Rs 208.80, in an otherwise subdued market. The stock has now rallied 18 per cent in the past four trading days. The stock surpassed its previous high of Rs 205, touched on April 21, 2006. In the past one month, Balrampur Chini Mills has outperformed the market by surging 27 per cent, as compared to 0.88 per cent rise in the S&P BSE Sensex, on account of sharp rise in surge prices in international market. However, in six months, it performed in line with the benchmark index, which gained 33 per cent during the period. READ MORE

Flipkart said to weigh US listing with SPAC as option

> Flipkart could seek at least $35 billion in valuation 
> SPAC stands for Special Purpose Acquisition Company

(Source: Agencies)

Heatmap: S&P BSE Sensex gainers and losers at this hour


Global Market Check :: US Futures recover in early European trade

> Nasdaq 100 E-minis were up 0.15%
> S&P 500 E-minis turned flat

NEWS ALERT :: FM meeting Sebi head, Fin Min officials on NSE tech glitch

Source: A TV report said, citing government official

Rising US yields knock European stocks, miners slump

European stocks fell on Thursday after three straight sessions of gains as a jump in U.S. bond yields knocked risk appetite globally, with heavyweight miners and travel stocks leading the retreat. The pan-European STOXX 600 index fell 0.5% in early trading, with miners dropping 2.8% and travel & leisure stocks down 1.6%.
 
(Source: Reuters)

NEWS FLASH :: EPFO maintains interest rate at 8.5% for FY21, say sources

> EPFO stands for Employees' Provident Fund Organisation

NEWS ALERT :: Delhi HC directs SII, Bharat Bio to disclose capacity to manufacture Covaxin, Covishield

SECTOR WATCH:: Cement stocks trade largely higher in an otherwise weak market

COMPANY NAME LATEST HIGH LOW CHG(%)
Udaipur Cement 23.00 23.25 22.25 2.91
Shiva Cement 21.10 21.30 20.70 -0.24
Ambuja Cements 284.80 285.05 278.85 0.98
Sanghi Industrie 44.65 45.10 42.40 2.06
Click here for the full list

IRCTC's shares pick up speed on marked revival in travel activity

Shares of Indian Railway Catering and Tourism Corporation (IRCTC) are up almost 30 per cent since the start of February as investors are betting on the easing of Covid-19 related restrictions and a pickup in vaccination drive to boost travel activity. The stock made a 52-week of Rs 1,989 on Tuesday, and last traded at Rs 1,884.35 on Wednesday on the BSE. The government-owned railways' catering and ticketing company had seen business come to a halt as train operations were severely impacted in the first half of the ongoing fiscal due to the outbreak of Covid-19 and lockdowns. READ MORE

A few things the RBI should be mindful of before issuing own bonds

In view of the huge liquidity inflows into Indian markets, authors of the Report on Currency and Finance (RCF) that was published by Reserve Bank of India last week have an interesting proposal to manage the influx. RBI should be able to issue its own bonds to mop up the excess liquidity, the report argued. Globally this is not new, as many global central banks like those in Switzerland, Japan and Sweden issued their own bonds to absorb liquidity in the aftermath of the global financial crisis. READ MORE

BUZZING STOCK:: BHEL zooms 8% in an otherwise weak market


Recovery from intra-day lows in today's trade

COMPANY DAY'S LOW(RS) DAY'S HIGH(RS) LATEST(RS) RISE(%)
Adani Power 62.40 71.40 71.40 14.42
Indbull.RealEst. 101.10 119.35 115.00 13.75
APL Apollo Tubes 1133.00 1293.00 1287.95 13.68
Ujjivan Small 33.10 38.35 36.95 11.63
Click here for the full list

Adani Ports surges 5% as Co set to acquire stake in Gangavaram Port

Shares of Adani Ports and Special Economic Zone (APSEZ), on Thursday, rallied 6 per cent to hit a new high of Rs 765.70 on the BSE in intra-day trade after the company said it acquiring 31.5 per cent stake held by Warburg Pincus - in Gangavaram Port (GPL) for a consideration of Rs 1,954 crore. GPL is located in the northern part of Andhra Pradesh next to Vizag Port. It is the second largest non major port in Andhra Pradesh with a 64 MMT capacity established under concession from Government of Andhra Pradesh (GoAP) that extends till 2059. READ MORE

Japanese Yen near seven-month low, Asian shares fall as bond yields rise

The Japanese yen hit a seven-month low on the dollar on Thursday as hopes that vaccine distribution and more government stimulus will drive the U.S. economy into a solid rebound lifted the greenback and benchmark Treasury yields.
 
But the creep up in benchmark yields may weigh on Asian stocks, as wary investors recall last week's sell-off in government bonds that caused yields to spike, spooking equity markets and causing shares to tumble. READ MORE

BUZZING STOCK :: Ion Exchange slips for 2nd day, sheds over 5%

> Ace investor Rakesh Radheyshyam Jhunjhunwala and his firm Rare Investments offloaded stake worth Rs 65 crore in the company on Tuesday.

Ind-Ra revises PNB Housing Finance's NCDs to negative

India Ratings and Research (Ind-Ra) has revised the outlook on PNB Housing Finance's (PNBHF's) non-convertible debentures (NCDs) to negative from stable while affirming the rating at AA.
 
The size of issue is Rs 15,517 crore, down from Rs 21,897 crore earlier. READ MORE
 

IRCTC hits all-time high; stock rallies 32% in a month on improved outlook

Shares of Indian Railway Catering and Tourism Corporation (IRCTC) hit an all-time high of Rs 2,015, up 7 per cent on the BSE in the intra-day trade on Thursday, as analysts remain bullish on the counter. The stock of the government-owned railways' catering and ticketing company, which surpassed its previous high of Rs 1,995, touched on February 25, 2020, has appreciated by 32 per cent over the past one month as compared to less than 1 per cent gain the S&P BSE Sensex. READ MORE


Upside for Tata Communications hinges on data growth, esp newer segments

After falling 14 per cent on lower than expected results in the December quarter, the stock of Tata Communications more than erased the losses gaining 26 per cent since then. Half of those gains came in the last two trading sessions due to an increase in target price.
 
The triggers being land bank monetisation and robust growth in data services. With the government looking to offload its 26 per cent stake in the company through an offer for sale, the company will have the option to monetise the 756 acres of surplus land across the country. READ MORE

Nifty at 15,000: Should you stay bullish and look for opportunities?

The bears made a comeback on Dalal Street, reminding investors of last week's drubbing, when the markets opened for trade on Thursday as concerns over spike in bond yields rekindled. The domestic markets, in the first three sessions of this week, had managed to recoup all losses sustained in Friday's session and were eyeing the all-time high levels on the back of strong macroeconomic data and stabilisation of bond yields. But come Thursday, the US bond yields which have become influential on stock prices, globally, spiked to 1.48 per cent, resulting in a 900-point crash on Sensex and pushing Nifty below 15,000. READ MORE


Coal India's second interim dividend likely to be Rs 4-5 per share

State-owned Coal India's second interim dividend could be in the range of Rs 4-5 per share as it is working to match the previous year's total dividend amid an outstanding of Rs 25,000 crore, coupled with sluggish demand, sources said on Thursday. The miner had announced Rs 7.5 per share as the first interim dividend in November. 
 
(Source: PTI)

FPIs bat for common platform to avail Budget benefit on dividends

A clutch of foreign custodians have reached out to the depositories to allow foreign portfolio investors (FPIs) to upload details for availing lower withholding tax on dividends received at the depository account level.
 
The aim is to enable companies to download the requisite information directly from the depositories or from their registrars, making it easier for them to withhold tax after taking into account treaty benefits as applicable.  READ MORE

IRCTC's shares pick up speed on marked revival in travel activity

Shares of Indian Railway Catering and Tourism Corporation (IRCTC) are up almost 30 per cent since the start of February as investors are betting on the easing of Covid-19 related restrictions and a pickup in vaccination drive to boost travel activity.
 
The stock made a 52-week of Rs 1,989 on Tuesday, and last traded at Rs 1,884.35 on Wednesday on the BSE. READ MORE

MARKET UPDATE:: Sensex off day's low, but still down over 350 pts


Power stocks in focus; Adani, Tata, Torrent Power hit 52-week highs

Shares of electric utilities companies were in focus at the bourses on Thursday, with the S&P BSE Power index hitting a 52-week high in an otherwise subdued market amid expectation of higher power demand. Among stocks, Adani Power, Tata Power, Torrent Power, Adani Transmission and NHPC hit their respective 52-week highs and rallied by up to 10 per cent on the BSE. READ MORE

Nifty sectoral indices at this hour


How insurance sector will gain from FM Sitharaman's Budget booster

One of the most important yet under-penetrated sectors in India, insurance, has been making headlines for the past few weeks. The spotlight was first put on the sector in early February, when Finance Minister Nirmala Sitharaman proposed to increase the permissible foreign direct investment (FDI) limit in insurance companies to 74 per cent from 49 per cent and allow foreign ownership and control with safeguards. READ MORE

Top Sensex drags at this hour


Welspun India's board approves raising up to $100 mn

Home textiles major Welspun India's board has approved raising up to USD 100 million (approximately Rs 750 crore) in one or more tranches.  The board of directors has "approved raising of borrowing of up to a maximum of USD 100 million in one or more form or instruments, including but not limited to loans, ESG Bonds, nonconvertible debentures (NCDs), ECBs, etc, may be raised in form of domestic or overseas issuance... in one or more tranches", Welspun said in a regulatory filing.

(Source: PTI)

NEWS ALERT :: Yield on Govt 10-yr benchmark bond rises to 6.26%

>> This is the highest level since April 20, 2020

Equitas SFB hits highest level since listing, zooms 71% against issue price

Shares Equitas Small Finance Bank (SFB), on Thursday, rallied 14 per cent to Rs 56.50, its highest level since listing, on the BSE in intra-day trade on the back of heavy volumes. The bank made its stock market debut on November 2, 2020. With today’s rally, the stock has surged 71 per cent against the issue price of Rs 33 per share.
 
The trading volumes on the counter jumped 1.6 times in the first half-an-hour of trade with a combined 3.6 million equity shares changing hands on the NSE and BSE, till 09:41 am. Currently, the stock was trading 11 per cent higher at Rs 55.35, against 1.5 per cent decline in the S&P BSE Sensex. READ MORE

Enforcement Directorate slaps money laundering case on Franklin MF

According to sources, while the ED has registered a money-laundering case against the fund house and eight others, the market regulator has issued a show-cause notice and summons to the company and its key personnel who redeemed their investments days or weeks before the closure announcement. READ MORE

Govt may cut reserve price of spectrum ahead of the 5G auction: CLSA

The government may cut the reserve price of spectrum ahead of the 5G auction, given 63 per cent of spectrum remained unsold at this week’s auction, CLSA said in its investor note. The government had put 2,250 megahertz (MHz) of spectrum on offer. After the two-day auction, it sold 855.6 MHz. READ MORE

Deepak Nitrite jumps 4%


Indian Bank gains 2% as Crisil revises bond ratings

>> CRISIL revised Indian Bank's Tier 1, Tier 2 and Infrastructure Bonds ratings to 'stable' from 'negative'.


Bajaj Electricals rallies 5%

>> Bajaj Electricals and Mahindra Logistics have signed a logistics optimisation and outsourcing contract worth over Rs 1,000 crore for the next five years.


Container Corp zooms 6%, hits 52-week high


BUZZING :: Infosys bucks the downtrend


Ircon International extends weakness into second day

>> The Offer for sale (OFS) of Ircon was over-subscribed on the first day of issue by institutional investors. The issue will open for retail investors today. The government is selling up to 16 per cent stake at a floor price of Rs 88 a share in railway PSU Ircon.


Adani Ports rewards investors in a feeble market

>> Gautam Adani-led Adani Ports and Special Economic Zone, on Wednesday, said it is acquiring the 31.5 per cent stake of Windy Lakeside Investment in the Gangavaram Port for Rs 1,954 crore. Windy Lakeside Investment is an affiliate of global private equity firm Warburg Pincus.


Sectoral trends on NSE :: Banks, metals stocks worst hit


Sensex Heatmap :: Financials crack in early deals


First Trade :: Nifty holds 15,000 levels


First Trade :: Sharp downtick on Sensex


COMMODITY CHECK


Pre-open Session :: Nifty below 15,150


Sensex sheds 250 points in pre-open session


Stocks to watch: Adani Ports, Ircon Int'l, Airtel, HDFC

Adani Ports: Gautam Adani-led Adani Ports and Special Economic Zone, on Wednesday, said it is acquiring the 31.5 per cent stake of Windy Lakeside Investment in the Gangavaram Port for Rs 1,954 crore. Windy Lakeside Investment is an affiliate of global private equity firm Warburg Pincus.
 
Ircon International: The Offer for sale (OFS) of Ircon was over-subscribed on the first day of issue by institutional investors. The issue will open for retail investors today. The government is selling up to 16 per cent stake at a floor price of Rs 88 a share in railway PSU Ircon. READ MORE


Nifty outlook & stock picks by Gaurav Garg, CapitalVia Global Research

As per weekly option data, heavy put writing on lower strikes ranging from 14,800 to 15,100 is witnessed which shows the Nifty might face support in the zone of 15,000 as maximum put OI is placed here for weekly expiry. We can witness short-covering move along with addition of fresh position only if Nifty breaches 15,250. READ MORE


Trading strategies for crude oil and zinc by Tradebulls Securities

Buy Zinc | TGT: 228 | Stop loss: 219
Zinc has made ‘Hammer’ Candlestick pattern after falling from highs of 235 to 216. The formation of Hammer candlestick pattern suggests that buyers have taken control and the low of candlestick is the technical stoploss with which one can go long in Zinc.
 
Sell Crude below 4,300 TGT: 4,100 | Stop loss: 4,400
Crude oil, after reaching overbought zone, has retraced back but trend reversal will only occur below recent swing low of 4,300. That would show classical breaking of higher high and higher low formation that crude oil is displaying on daily chart. 20DMA also comes around 4,350, so any trend reversal will only be validated below that region. READ MORE

FIIs, DIIs both turned net buyers on Wednesday


NSE bulk deal data for Wednesday

BSE bulk deal data for Wednesday

SGX Nifty indicates gap-down start

> Nifty futures on Singapore Exchange traded 278 points down at 8.42 am, indicating a weak start 

Rupee check

(Source: Bloomberg)

Oil prices firm on prospect of OPEC+ maintaining supply cuts, drop in US inventories

Oil prices rose for a second straight session on Thursday, as the possibility that OPEC+ producers might decide against increasing output at a key meeting later in the day underpinned alongside a drop in U.S. fuel inventories. Brent crude futures added 11 cents, or 0.2%, to $64.18 a barrel, as of 0148 GMT, after climbing more than 2% on Wednesday. U.S. West Texas Intermediate (WTI) crude futures were unmoved at $61.28 a barrel.

(Source: Reuters)

Asian shares crack

The creep up in benchmark yields weighed on Asian stocks. Australian shares had lost 1 per cent, while Japan's Nikkei dipped 1.5 per cent.
 

US shares fall

US shares had fallen overnight as investors sold off high-flying technology shares to focus on other sectors likely to benefit from an economic recovery. The Dow Jones fell 0.39 per cent, the S&P 500 lost 1.3 per cent, and The Nasdaq dropped 2.7 per cent.

US yields rise again

The gap between yields on two- and 10-year Treasury notes widened to as much as 135.4 basis points on Wednesday, the most since February 26, when the curve had steepened by the most since 2015. In early Thursday trade, the 10-year Treasury yield crept higher to 1.48 per cent, though off the one-year high of 1.61 per cent struck last week.

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