Indices snap 5-day losing streak; Sensex ends flat; Nifty Metal gains 4%

Topics MARKET WRAP | Markets | BSE Sensex

Stock market updates: Bulls were back in action on D-Street after a five-day hiatus as a decline of over 4 per cent in the past five sessions addressed investors' concern on the valuation front. That said, rise in Brent crude (now over $66 per barrel), bond yields, and concerns over commodity-induced inflation capped gains.
Among key indices, the benchmark S&P BSE Sensex closed at 49,751 levels, up 7 points or 0.01 per cent. The index had surpasses the 50,000-mark in the intra-day trade and had hit a high of 50,327 on the BSE. 21 of the 30 constituents ended the day in the green with ONGC (up 5.6 per cent), IndusInd Bank (up 2.6 per cent), L&T (up 2 per cent), and UltraTech Cement (up 17 per cent) topping the list of gainers.

On the downside, Kotak Mahindra Bank (down 3.7 per cent), Maruti Suzuki (1.6 per cent), HDFC Bank (1.5 per cent), and Bajaj Auto (1.2 per cent) ended the day as top laggards.

Meanwhile, over 6 per cent gains in Tata Steel and Tata Motors each, and 5 per cent gains each in Hindalco, ONGC, and UPL helped the Nifty50 index close above the 14,700-mark at 14,708 levels, up 32 points or 0.22 per cent. The index hit a intra-day high of 14,854. 

In the broader markets, the Nifty MidCap 100 and SmallCap 100 indices settled with gains of about 1 per cent on the NSE.

On the sectoral front, only financial and select pharma stocks traded weak at the bourses today with the Nifty Private Bank and Financial Services indices dropping half a per cent at close. On the upside, the Nifty Metal index jumped 3.8 per cent while the Nifty Realty index closed 2.6 per cent at close.

Global markets
Asian shares rebounded from two-week lows on Tuesday as rising commodity prices boosted market expectations of an improved growth outlook, a day after rising US Treasury yields and inflation prospects hit US tech shares.

MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.4 per cent to 726.6, the Australian S&P/ASX 200 index rose nearly 0.9 per cent, while Singapore's Straits Times index put on 0.6 per cent and Taiwan was up 0.2 per cent. That apart Hong Kong advanced 1 per cent but the tech-laden South Korea’s Kospi lost 0.3 per cent.

Japanese markets were closed for a public holiday. 

In Europe, however, Germany's DAX slipped 1.3 per cent while Spain's CAC40 index was down 0.08 per cent. London's FTSE100, on the other hand, was up 0.05 per cent. 


LIVE UPDATES

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

Indian benchmark equity indices closed off the highest point of the day on Feb 23 but managed to snap a five-day losing streak. The nifty made an intra day high at 1040 Hrs and then slid and went sideways. At close, the Nifty 50 index ended 32 points higher at 14,707.
 
Volumes on the NSE were in line with recent averages. Among sectors, Metals, Realty , Auto were the main gainers while Banks were the main losers.       The Nifty Midcap index ended 1% higher while the Smallcap index gained a similar quantum to end with gains of 0.9%.
 
Nifty halted the 5 day losing streak but the recovery or bounce was feeble. This raises doubts about sustainability of this bounce. However positive advance decline ratio raises hope for the broader markets.

MARKET CLOSING COMMENT :: Shrikant Chouhan, Executive VP, Equity Technical Research at Kotak Securities

Markets logged small gains after a sharp decline in last five sessions. Most of the time such type of formation works as a continuation and on Wednesday, if the market breaks the 14630/49600 level, the Nifty / Sensex could fall further on the support of 14530/49300 levels. However, a 50% retracement shown by the Nifty / Sensex after the announcement of the Union Budget could be a reversal for the market. In short, there should be a buying strategy if the Nifty / Sensex falls to the 14530/14500 levels, however, if the Nifty closes below the 14500 level, it would indicate further weakness. On the upside, 14850/50350 and 14950/50750 levels would be the major obstacles. While the metals sector performed well to date, bank stocks failed to perform due to exceptional strength in long-term bond yields.
 
 

MARKET CLOSING COMMENT :: Sumeet Bagadia, Executive Director, Choice Broking

After a positive opening, the Nifty index traded in a narrow range and closed at 14716.80 levels with a gain of 41 points. Bank Nifty closed into the negative territory at 35116.95 levels with an overall loss of 140 points. Heavyweight Reliance Industries gained almost 1% in a day, which supported the benchmark index to close on a green note.

Technically, the benchmark index has traded below its 21 Days Moving Averages which suggests some weakness in the counter for the near term. Moreover, the price has also shifted below its Middle Bollinger Band formation, which shows further correction for an upcoming trading session. At present, the Nifty has a strong resistance at 15000 levels while downside support comes at 14480 levels.

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

Domestic market got back on its feet during the morning trade supported by strong Asian market while negative waves from European peers outweighed the gains by the end of the day. The expectation of strong global recovery as prompted by rising international commodity prices helped the market but was tempered due to elevated bond yield & virus cases. Consequently, volatility has increased in the domestic front, but broad markets continue to be attracted with themes like Mid & Small caps, cyclicals, energy, PSUs, Metals and Industries

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

Index managed to hold above 14700 zone and closed a day with small gains forming a Doji candle pattern on the daily chart after consecutive five bearish candle. The index has good support near 14630 zone and immediate resistance is coming near 14800 zone so index may show some sort of consolidation in the same range and final direction will be clear once we see either side breakout from the mentioned range
 

IPO Update :: Hernaba issue subscribed 66% till 3:40 PM on day 1 of the issue


Market stats :: Advance to decline ratio favours bulls


Index contributors :: RIL, ICICI Bank, L&T support indices


Sectoral trends on NSE at Close


Sensex Heatmap at Close


CLOSING BELL

Among key indices, the benchmark S&P BSE Sensex closed at 49,751 levels, up 7 points or 0.01 per cent. The index had surpasses the 50,000-mark in the intra-day trade and had hit a high of 50,327 on the BSE. 21 of the 30 constituents ended the day in the green with ONGC (up 5.6 per cent), IndusInd Bank (up 2.6 per cent), L&T (up 2 per cent), and UltraTech Cement (up 17 per cent) topping the list of gainers. 
 
Meanwhile, over 6 per cent gains in Tata Steel and Tata Motors each, and 5 per cent gains each in Hindalco, ONGC, and UPL helped the Nifty50 index close above the 14,700-mark at 14,708 levels, up 32 points or 0.22 per cent. The index hit a intra-day high of 14,854. 
 

Tata Motors, Tata Motors DVR gain up to 8% amid heavy volumes

Shares of Tata Motors edged higher by 8 per cent to Rs 329 on the BSE in intra-day trade on Tuesday on the back of heavy volumes after the company outlined ambition to reach double-digit commercial vehicle (CV) margins and high single-digit passenger vehicle (PV) margins in coming years. It maintained plans to attain zero debt (excluding leases) by FY24 through strong operating cash flows and divestments. READ MORE

Bezos regains title of world's wealthiest person as Musk loses $15 bn

Tesla’s biggest decline since September was fueled in part by Musk’s comments over the weekend that the prices of Bitcoin and smaller rival Ether “do seem high.” His message -- via his favored medium of Twitter -- came two weeks after Tesla announced it added $1.5 billion in Bitcoin to its balance sheet. The cryptocurrency, which has surged more than 400% over the past year, tumbled for a second day on Tuesday, at one point slipping below $50,000 on skepticism over the durability of its rally. READ MORE

S&P assigns BBB-minus to Bharti Airtel's proposed senior unsecured notes

S&P Global Ratings on Tuesday assigned BBB negative long-term issue rating to senior unsecured notes that Bharti Airtel Ltd proposes to issue. At the same time, it assigned BB long-term issue rating to proposed subordinated perpetual securities (PERPS) issued by Network i2i Ltd and guaranteed by Bharti Airtel. READ MORE

Indian media, entertainment to see 27% revenue growth in FY22: Crisil

"Next fiscal, with strong economic rebound on the cards, ad revenue should grow 31 per cent on-year and subscription revenue around 24 per cent," Jain added.
 
The TV segment contributing around half of the sector's topline has recovered fully and will report healthy growth next fiscal. Ad revenue saw a sharp contraction initially, but recovered swiftly thereafter, aided by airing of new content, sports events such as the Indian Premier League and a buoyant festive season, Crisil Ratings Ltd said in a statement. READ MORE
 

BSE Midcap index jumps over 1%, beats benchmark Sensex


Cochin Shipyard shares surge 11% on order win from Indian Navy

The company has been declared as L1 or lowest bidder in the tender floated by the Indian Navy for construction of 6 numbers of Next Generation Missile Vessels (NGMV) and the estimated total order value is around Rs 10,000 crore, Cochin Shipyard said in a regulatory filing. READ MORE


Sun Pharma rises as firm to introduce Brivaracetam at an affordable price in India

Brivaracetam is approved by the Drugs Controller General of India (DCGI), as an adjunctive therapy in treatment of partial-onset seizures in patients 16 years of age and older with epilepsy.

Improved earnings visibility, debt pruning boost shares of Varun Beverages

Shares of Varun Beverages (VBL), which bottles and distributes PepsiCo’s range of beverages in India and a few others countries, are up more than 19 per cent in the past week as investors bet on the company’s improving earnings outlook after the strong beat in December quarter (Q4). Varun Beverages follows the January-December accounting year. READ MORE

European markets check

(Source: Reuters)


Bharat Forge jumps over 4% after firm inks pact with Paramount Group

Shares of Bharat Forge rose over 4 per cent in afternoon trade on Tuesday after the company inked a pact with global aerospace and technology firm Paramount Group to manufacture armoured vehicles in the country. The stock gained 4.05 per cent to Rs 612 apiece on the BSE. On the NSE, it rose by 4.12 per cent to Rs 612.85. READ MORE

BUZZING STOCK :: Cochin Shipyard surges 9% on receipt of order from the Indian Navy

"We would like to inform that at the meeting held today at the Ministry of Defence Cochin Shipyard Limited (CSL) has been declared as L1 in the tender floated by the Indian Navy for construction of 6 nos. of Next Generation Missile Vessels (NGMV) and the estimated total order value is around Rs. 10,000 crore," the company said in a BSE filing. READ HERE

This Rekha Jhunjhuwala-owned stock has rallied 58% so far in February

Shares of VA Tech Wabag rallied 15 per cent on Tuesday to hit a fresh 52-week high of Rs 296 on the BSE on the back of heavy volumes. In the past two days, the stock of the sewage and water treatment solutions provider has gained 21 per cent after foreign brokerage firm Nomura raised price target to Rs 446 per share. Ace investor Rakesh Jhunjhunwala’s wife Rekha Jhunjhunwala held 5 million shares, or 8.04 per cent stake, in VA Tech Wabag as on December 31, 2020, the shareholding pattern data show. READ MORE

Short selling by market players led to rise in bond yields: SBI report

An SBI Ecowrap report noted that while going short or long are typical market activities that aid in price discovery, at times, they can also result in price distortions, as it might be happening now.
 
"We believe one of reasons for the recent surge in yields might be short selling by market players," it said. READ MORE

Copper hits 9-1/2-yr high on tight supply, solid demand

Copper prices hit a 9-1/2-year high on Tuesday as tight supply and solid demand from top consumer China boosted sentiment. The most-traded April copper contract on the Shanghai Futures Exchange rose as much as 4.1% to 68,790 yuan ($10,647.45) a tonne, its highest since August 2011. Three-month copper on the London Metal Exchange rose as high as 2.3% to $9,305 a tonne, also the most since August 2011. 

(Text Source: Reuters)

Heranba Industries IPO subscribed 35% so far

The IPO opened for subscription today and many brokerages have a 'Subscribe' rating on the issue

Nifty Realty index holds gains in an otherwise volatile session


NEWS ALERT :: IndiGo & Dubai Aerospace Enterprise sign long-term lease agreements

>> Agreement is for 7 Airbus A321neo aircraft, scheduled to be delivered in 2021


Heranba Industries IPO opens today; should you subscribe?

>> Heranba Industries (Heranba) incorporated in 1992, is an agrochemical company. It is also one of the leading domestic producers of synthetic pyrethroids. The company is present in the entire product value chain of the agrochemicals industry. The business verticals include (a) domestic bulk sales of Technicals (31.6% of FY20 sales), (b) technicals bulk exports (36.5%) (c) branded formulations (12.7%), (d) formulations exports (12.8%) and (e) insect control chemicals (6.4%).

>> Heranba has more than 9,400 dealers having access to multiple states in India. It has three manufacturing facilities in and around Vapi with a capacity of 14,024 MTPA.

>> Benefiting from being an integrated pyrethroids manufacturer with a strong product pipeline, geographical expansion coupled with favourable macro factors are likely to drive growth. Apart from this, it has one of the strongest return ratios in Industry and healthy balance sheet. We have a SUBSCRIBE recommendation on the IPO. At Rs 627, the stock is available at 25.7x FY20.

(View by ICICI Securities)


Tata Steel, Vedanta: Rally in metal stocks may just have begun, charts show

NIFTY METAL: The index is struggling to sustain above the 3,600 mark. However, once breached decisively, an up move towards 4,000 levels can not be ruled out. Moreover, a break above the 66 level on the Relative Strength Index (RSI) index may further add strength on the upside, daily chart shows. The overall trend is bullish with the support of 3,400 – 3,450 levels. READ MORE

NEWS ALERT | Bharti Airtel and Qualcomm Tech announce collaboration for accelerating 5G in India

--  Recently, Airtel became India's first telco to demonstrate 5G over a LIVE commercial network in Hyderabad.

Turnaround stories: These 25 firms swung to profit in the December quarter

A quick analysis of the BSE 500 companies shows that there are 25 firms that reported a turnaround performance during the period under review – swinging from loss to profit – as compared to the previous corresponding period. The list includes some of the prominent names such as Adani Green Energy, Bharti Airtel, Bank of Baroda, Lupin, Steel Authority of India, Tata Steel, The India Cements, Dr Reddy's Labs, Jindal Steel & Power and Punjab National Bank. READ MORE

Hindalco jumps 4% as firm unveils capital allocation framework

Shares of Hindalco, on Tuesday, rose nearly 4 per cent to hit an intra-day high of Rs 327.65 on the BSE after the firm announced plans to deleverage its balance sheet and came out with a capital allocation framework for growth Capex, debt reduction and shareholders’ returns. READ MORE

NEWS ALERT :: Bitcoin tumbles back below $50,000

>> The crypto was last down 11% at $49,700

ONGC rallies 7% on higher oil prices; stock up 29% so far in February

Shares of Oil and Natural Gas Corporation (ONGC), on Tuesday, hit a fresh 52-week high of Rs 113.95 after rallying up 7 per cent on the BSE on the back of rising oil prices. Besides, Goldman Sachs Group Inc. predicted prices could advance above $70 in the coming months. Thus far in the month of February, the stock of the state-owned oil exploration company has rallied 29 per cent, as compared to 8.5 per cent rise in the S&P BSE Sensex. READ MORE

Chart check: Will the O2C biz spin-off trigger a fresh rally in RIL stock?

Shares of Reliance Industries (RIL) rose 2 per cent in Tuesday's intra-day deals to Rs 2,048.70 on the BSE after the company said it has begun the process of carving out the O2C business into an independent subsidiary and expects to get the necessary approvals for the same by the second quarter of the next financial year. The company said the O2C business will be turned into a separate entity that will be 100 per cent owned by RIL and will result in no change in the company's shareholding. READ MORE

NEWS FLASH :: Bharat Forge receives order worth Rs 177.95 cr from Ministry of Defence

Bharat Forge Limited has received an order worth Rs 177.95 crores from the Indian Ministry of Defence for supply of Kalyani M4 vehicles, the company said in a BSE filing.

Tanla Platforms rallies 40% in 2 weeks; stock hits new lifetime high

Shares of Tanla Platforms hit fresh record high and were locked in the 5 per cent upper circuit at Rs 960 on the BSE on Tuesday. Till 10:04 am, a combined around 100,000 equity shares had changed hands and there were pending buy orders for total 96,000 shares on the NSE and BSE, data show. In the past two weeks, shares of the IT software products company have rallied 40 per cent after the company reported a stellar October-December quarter (Q3FY21) results. In comparison, the S&P BSE Sensex has declined 2.6 per cent during the same period. READ MORE

Page Industries appoints V S Ganesh as new CEO; stock surges over 4%

Page Industries shares advanced 4.5 per cent to Rs 28,806 on the BSE in an otherwise volatile market on Tuesday after the company approved appointment of V S Ganesh as Executive Director and Chief Executive Officer of the company. Ganesh will be appointed for a period of 5 years effective June 1, 2021. Consequent to the elevation, the Board has shortened his present term of Executive Director – Manufacturing and Operation to the closing hours on May 31, 2021. READ MORE

Bulls back in action! Sensex jumps 400 points


Info Edge shares zoom 5% after Zomato raises another $250 million

In a stock exchange filing, Info Edge said that the latest transaction has taken the post-money valuation of Zomato to $5.4 billion. This is an increase from its previous valuation of $3.9 billion in December last year when it closed a $660 million primary financing round. READ MORE

Reliance Industries gains 2% on plans to hive off O2C business

Shares of billionaire Mukesh Ambani's Reliance Industries (RIL) rose 2 per cent to hit an intra-day high of Rs 2,048.70 on the BSE after the company said it has begun the process of carving out the O2C business into an independent subsidiary and expects to get the necessary approvals for the same by the second quarter of the next financial year. READ MORE
 

Most active stocks by volume

Company PRICE(rs) CHG(%)
Vodafone Idea 10.92 1.49
Central Bank 18.39 -5.60
Natl. Aluminium 53.80 2.28
Punjab Natl.Bank 41.35 0.49
Tata Motors 317.30 4.32
» More on Most Active Volume

RIL restructuring to ease Aramco deal, unlock next leg of up move: Analysts

RIL, the investor presentation said, will focus on new energy and new materials business “towards its vision of clean and green energy development.” The company also plans to develop or introduce new technologies to reduce carbon footprint for O2C business and plans to achieve net carbon zero by 2035. READ MORE

Sensex erases gains, turns negative


How to play markets today :: Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

After a long gap, FIIs turned sellers yesterday. The combined selling by FIIs & DIIs pulled the market down sharply with a  306 point cut in Nifty. Sharp corrections like this are normal and even desirable in a bull market. When valuations are high some triggers will cause corrections. The escalation in Covid cases in Maharashtra, a spike in crude and rising bond yields provided the trigger for correction. Correction in Nasdaq yesterday is another reminder that excessive valuation cannot sustain. Investors should wait and watch for stability & consolidation in the market before making fresh commitments

Hindalco gains 2% as it unveils capital allocation framework

Hindalco expects to generate $1-1.2 billion cash flow per annum post its normal working capital and maintenance Capex and has come out with a capital allocation framework for growth Capex, debt reduction and for shareholders’ returns.

HDFC Bank shares dip marginally

>> The Securities Appellate Tribunal (SAT) has stayed a Sebi order which imposed a fine of Rs 1 crore on HDFC Bank for invoking securities pledged by stock broker BRH Wealth Kreators, till further orders.

Bharat Forge shares gain 2% on signing pact with Paramount Group

The company has inked a pact with global aerospace and technology firm Paramount Group to manufacture armoured vehicles in the country.

BUZZING STOCK :: Info Edge climbs 3% as Zomato raises Rs 1,800 crore in funding

The company said its investee company Zomato has raised $250 million (over Rs 1,800 crore) in funding from Tiger Global, Kora and others, valuing the online food ordering platform at $5.4 billion.

Bharti Airtel gains 1% ahead of meet with global investors

The company will meet global fixed income investors on or after Feb 23, 2021, to take the decision on the issuance of foreign currency bonds or notes.

RIL jumps over 1% as firm to hive off O2C business

Mukesh Ambani-controlled Reliance Industries Ltd (RIL) expects to get the necessary approvals to hive off its oil-to-chemicals (O2C) business into a separate unit by the second quarter of the next financial year, according to the company's presentation to investors on Monday. READ MORE

India VIX cools off, slips 2% to below 25 level

> VIX is a measure of market volatility

Sector Watch :: All sectoral indices on NSE trade in the green


Sensex Heatmap

- 21 Sensex stocks in the green
- ONGC best performer, rises over 4%
- Asian Paints worst loser, down nearly 2%

Nifty tops 14,700 at opening tick


OPENING BELL: Sensex jumps over 250 points, reclaims 50,000


COMMODITY CHECK :: Gold, silver prices gain marginally


Sensex Heatmap | Top gainers & losers in pre-open trade


Nifty reclaims 14,700 in pre-open trade


Pre-open session :: Sensex rises over 100 points


Stocks to watch: RIL, Bharat Forge, Vedanta, Airtel, HDFC Bank, Hindalco

Reliance Industries: The company, in a late night filing, said that it has begun the process of carving out the O2C business into an independent subsidiary. The process for seeking approvals is likely to be completed by Q2FY22. The reorganisation of the O2C business will result in no change in the company's shareholding.
 
Bharat Forge: It has inked a pact with global aerospace and technology firm Paramount Group to manufacture armoured vehicles in the country. READ MORE

BSE bulk deal data for Monday

NSE bulk deals on Monday

FIIs, DIIs both turned net sellers on Monday


Oil prices jump more than $1 on slow US output restart

Oil prices jumped by more than $1 on Tuesday, as U.S. output was slow to return after a deep freeze in Texas shut in crude production last week. Brent crude was up $1.06, or 1.6%, at $65.30 a barrel, after earlier hitting a high of $66.38. US crude rose 81 cents, or 1.4%, to $62.51 a barrel, after hitting a session high of $62.73. Both benchmarks have risen more than 1% after climbing nearly 4% in the previous session.

Rupee surges 16 paise to close at 72.49 against US dollar

The rupee gained 16 paise to settle at 72.49 against the US dollar on Monday supported by sustained foreign fund inflows and expectation of improved macro-economic data. At the interbank forex market, the local unit opened at 72.58 against the greenback and witnessed an intra-day high of 72.29 and a low of 72.58.

Wall Street check

Rising US Treasury yields and inflation prospects led to a further rotation out of the big tech stocks responsible for a major Wall Street rally during the pandemic. In the overnight trade, the Dow Jones rose 0.09 per cent, eking a small gain. The S&P 500 lost 0.77 per cent and the Nasdaq Composite dropped 2.46 per cent.
 

Asian market check

Asian stocks were mixed on Tuesday. The Australian S&P/ASX 200 gained half a per cent while South Korea’s Kospi declined 0.8 per cent in early trading. Hong Kong’s Hang Seng index futures rose 0.2 per cent. Japanese markets are closed for a public holiday.

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