Stock market updates: India's largest stock exchange, the National Stock Exchange (NSE), abruptly shut its cash and derivatives segment, following a glitch which froze stock prices, triggering panic among investors. Trading was halted at 11:40 am and resumed only at 3:30 pm. The glitch, which came a day ahead of the monthly F&O expiry for the February series, caused massive volatility during the last hour of trade. The same is expected to continue on Thursday as well.
"NSE has multiple telecom links with two service providers to ensure redundancy and we have received communication from both the telecom service providers that there are issues with their links due to which there is an impact on NSE system. We are working on restoring the systems as soon as possible," NSE said. READ MORE
Post resumption of trade, both the Sensex and Nifty witnessed bouts of volatility as investors scurried to square off their positions, and execute morning trades.
The benchmark S&P BSE Sensex zoomed to day's high during the fag-end of the session, soaring 1,130 points in the intra-day trade. The index ended 1,030 points, or 2 per cent, higher at 50,782 levels. HDFC Bank, Axis Bank, ICICI Bank, SBI, and HDFC, up in the range of 3 per cent and 5 per cent, were the top gainers among the 23 stocks that ended in the green.
On the contrary, Dr Reddy's Labs, TCS, Sun Pharma, Asian Paints and Power Grid declined between 0.5 per cent and 1.4 per cent and closed as top laggards on the index.
Weightage-wise, HDFC Bank, Reliance Industries, HDFC, ICICI Bank, and Axis Bank supported the index.
Overall, market breadth on the BSE remained titled towards advances with over 1,850 stocks settling higher, compared with around 1,000 stocks that slipped today.
On the NSE, the Nifty50 closed above the 14,950-mark, up 272 points or 1.9 per cent at 14,982 levels. The index hit an intra-day high of 15,009.
In the broader markets, the S&P BSE SmallCap index settled 1 per cent higher on the back of gains in IIFL Securities, Manali Petrochemicals, Religare Broking, Dredging Corporation of India, and Nava Bharat Ventures, that gained in the range of 11 per cent and 20 per cent.
The S&P BSE MidCap index, on the other hand, ended 0.77 per cent higher.
Sectorally, the Nifty Bank and Private Bank indices closed 4 per cent higher each after Finance Minister Nirmala Sitharaman said that the government has lifted embargo on grant of government business to private banks. Federal Bank, Bandhan Bank, IDFC First Bank, and IndusInd Bank remained top performers on the Nifty Private Bank index.
That apart, the Nifty Financial Services, Realty, and Media indices closed between 1 per cent and 2.5 per cent higher. On the downside, the Nifty IT was the only index that ended in the red, down 0.11 per cent.
European shares opened generally higher on Wednesday but world shares remained in the red after a weak Asian session, even after Fed Chair Jerome Powell pushed back against inflation fears.
Europe's STOXX 600 rose in early trading, up 0.1 per cent, Germany's DAX was up 0.4 per cent, but London's FTSE 100 was down 0.7 per cent.
The MSCI world equity index, which tracks shares in 49 countries, was down 0.4 per cent.
MARKET CLOSING COMMENT :: Deepak Jasani, Head of Research, HDFC Securities
Indian equity benchmark indices witnessed a session marred by a technical outage that disrupted trading on the NSE for nearly four hours. The Nifty opened flat and rose in early trade. The NSE shut trading in its cash and derivative segments at 1140 Hrs, citing “issues” with telecom links of its two service providers, which it said impacted the system and stopped prices from updating. Trading resumed on the NSE at 1545 Hrs and indices rose sharply post the second opening due to square off/shifting activities across exchanges. BSE continued to have normal trading in all segments through the extended day.
Nifty has bounced up well after the 5 day fall seen recently. Although this rise is to be seen in the backdrop of the widespread weakness across Asia, the momentum in the indices could take the Nifty up to 15039-15132 band in the near term. However for the time being it seems as a correction of the recent fall and not a new uptrend.
MARKET CLOSING COMMENT :: Vinod Nair, Head of Research at Geojit Financial Services
Technical glitch did not impact domestic market sentiment though volatility was high with a positive prejudice, in the first session. During the extra session, the market gathered more strength and hugely outperforming the global peers, triggered by squaring-off F&O positions a day ahead of the prefixed monthly expiry date. The global market was mixed, not very convinced that world central banks like FED will maintain a flexible monetary policy even during rising bond yield & inflation. And the Asian market was negatively impacted by a hike in stamp duty on equities.
Nifty Outlook by Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities
Nifty50 is currently in consolidative phase; we expect the same to continue for the next few weeks. Broader range is seen at 14500-15200. From the medium term perspective, the undertone remains extremely positive and we expect the index to test 16000 odd levels. Banking, Metals and Realty remain preferred picks and can be accumulated on correction
Stocks that lifted Sensex today
Sectoral trends on NSE at Close
Sensex Heatmap at Close
The benchmark S&P BSE Sensex zoomed to day's high during the fag-end of the session, soaring 1,130 points in the intra-day trade. The index ended 1,030 points, or 2 per cent, higher at 50,782 levels.
On the NSE, the Nifty50 closed above the 14,950-mark, up 272 points or 1.9 per cent at 14,982 levels. The index hit an intra-day high of 15,009.
Gold holds tight range on investor caution over Powell remarks
Gold steadied in a tight range on Wednesday, propped up by a subdued dollar, as investors digested monetary policy cues from Federal Reserve Chair Jerome Powell.
Spot gold was up 0.1% at $1,807.51 per ounce. US gold futures were steady at $1,805.60. READ MORE
NEWS ALERT :: Godawari Power and Ispat starts booking export orders of High Grade Iron Ore Pellets
ALERT :: India VIX drops over 5%
>> The index is quoting near 24 levels
ALERT :: Nifty reclaims 15,000 in intra-day trade
Tata Power raises Rs 900 cr through non-convertible debentures
Tata Power has raised Rs 900 crore through issuance of non-convertible debentures (NCDs).
The company issued 9,000 unsecured, redeemable, taxable, listed, rated NCDs worth Rs 900 crore on Tuesday, a BSE filing said.
The series-I debentures worth Rs 400 crore would mature on February 23, 2024, while series-II debentures of Rs 500 crore would mature on February 23, 2026, it said.
ALERT :: Sharp rally in Sensex
NEWS ALERT :: Embargo lifted on grant of Govt business to private banks, says FM Nirmala Sitharaman
SECTOR ALERT :: Nifty Bank gains 2%
EXPERT TAKE :: Anand James, Chief Market Strategist at Geojit Financial Services on NSE tech glitch
Expiry eve is a crucial day for expiry related trades as time decay sets in. As indices froze a little after 10 am, FNO trades that reference such benchmark indices also slowed down. With hardly an hour’s trade possible for such index-based traders the higher margins on F&O positions may have been a double whammy. Towards this end, BSE being open may not have been much solace, but certainly a backup avenue for cash traders. Fortunately, VIX had calmed down after Monday’s steep fall, and the extended session post 3. 45pm could help settle things. As of Tuesday, Nifty and Bank nifty rollovers were at 40.9 and 36.7 respectively, in line with what is usually seen on similar days of previous expiries
India's economic recovery to cut bank stress, but Covid hit to be felt: S&P
An improvement in India's macroeconomic conditions is likely to alleviate stress for the country's banking sector. However, a hit from Covid-19 pandemic is inevitable, according to "Banking Industry Country Risk Assessment: India", a report by S&P Global Ratings.
Rating agency Standard and Poor’s (S&P) in a statement said the Indian government's strong efforts to shield banks from the Covid-19 pandemic have been largely successful. READ MORE
Cabinet approves PLI scheme for pharma and IT sectors, says Javadekar
ALERT :: Indices turn volatile as NSE resumes trading
>> BSE to remain open till 5 PM today
BREAKING :: NSE to open for pre-open at 3:45 PM
>> Trading will continue till 5 pm
NEWS ALERT :: All MIS/CO F&O positions will get carried over to tomorrow, says Nithin Kamath
If NSE doesn't open for the day, all MIS/CO F&O positions will get carried over to tomorrow with today's buy/sell entry price, the Zerodha founder tweeted
Ultra-high networth population in India may rise 63% in 5 yrs: Knight Frank
The number of ultra-high networth individuals (UHNWIs) – those with $30 million or more – is likely to rise 63 per cent in India in the next five years to 11,198 in 2025, predicts the Knight Frank Wealth Report 2021. The pace of growth back home is far higher as compared to the 27 per cent rise in their population globally at 663,483 during this period. READ MORE
RBI guv assures liquidity for bond market, urges appropriate yield curve
The Reserve Bank of India (RBI) once again urged cooperation from the bond market participants for “orderly evolution of the yield curve.” The governor, in an interview with CNBC TV18, did not want to comment whether six per cent yield for the 10-year is the tolerance limit, but said the bond market should not worry about liquidity support. “The overnight liquidity window is there. The market is assured that liquidity will be there.” READ MORE
NEWS ALERT :: Zerodha announces to block all new orders if NSE issue isn't resolved by 2:45 PM
Plan of action: If NSE isn't back up by 2.45 pm, we will block all new MIS & CO orders for the day and attempt to square off all equity MIS & CO positions on BSE. Unfortunately, we will not be able to do anything with intraday F&O positions if NSE isn't back up. https://t.co/UvUjhl1dxP
Sebi tightens margin norms for commodities trading to curb negative pricing
The regulator has said “pre-expiry margins” will be imposed on cash-settled contracts wherein the underlying commodity is deemed susceptible to possibility of near zero and/or negative prices. These margins will be levied five days ahead of the expiry date and they will increase by 5 per cent each day. READ MORE
IIFL Finance raises Rs 100 crore via NCDs
IIFL Finance on Wednesday said it has raised Rs 100 crore through issuance of non-convertible debentures (NCDs) on private placement basis. The company said NCDs will be listed on the National Stock Exchange (NSE). The NCDs will carry interest rate of 7.7 per cent per annum.
Shankar Sharma reacts to NSE tech glitch
I am remembering today the Russian market shutdowns in 1998: Russian authorities would wait for Europe to open, see if markets were Green, if yes, open Russia for trading. Else keep it shut.
Today's, Asia market action is ugly....
Dilip Buildcon declared L1 bidder for projects worth Rs 2,439 cr; stk up 4%
Shares of Dilip Buildcon shot up 4 per cent to Rs 657 on the BSE on Wednesday after the company announced that it has been declared as L-1, or lowest bidder, for two new Hybrid Annuity Mode (HAM) projects 'Bangalore Chennai Expressway under Bharatmala Pariyojna in the state of Karnataka, Phase -I (Package- I & II) worth Rs 2,439 crore. READ MORE
NEWS ALERT | All order on NSE cancelled by exchange: Nithin Kamath
All open orders on NSE - Eq, FO, CDS has been cancelled by the exchange. Hopefully, they should be back up soon.
NEWS ALERT | SC to hear the issue of AGR recomputation in two weeks
-- Bharti, Voda-Idea claimed that DoT's demand was 'preliminary', subject to revision
(--via CNBC TV18)
Heatmap: S&P BSE Sensex gainers and losers at this hour
Isgec Heavy shares gain 5% on order win for 2 gas fired boilers
Shares of Isgec Heavy Engineering, on Wednesday, were up 5 per cent at Rs 487.50 in intra-day trade on the BSE after the company said it has bagged orders for two gas fired boilers from public sector refinery. The stock of the industrial machinery manufacture was trading close to its 52-week high of Rs 488, touched on February 8. READ MORE
NEWS ALERT | Dilip Buildcon declared lowest bidder for 2 HAM projects worth Rs 2,439 cr in Karnataka
NEWS ALERT | NSE clarifies, no confirmation about pre-opening session resuming at 1 pm
Reserve Bank of India concerned crypto may impact financial stability
The Reserve Bank of India is concerned that cryptocurrencies may impact financial stability in Asia’s third-largest economy, a view that could shape looming regulations on the asset that is breaking price-records around the world. The monetary authority has conveyed these “major concerns” to the government, Governor Shaktikanta Das said in an interview to CNBC TV-18 Wednesday. Prime Minister Narendra Modi’s administration is proposing to prohibit all private cryptocurrencies in the country and create a framework for an official digital currency. READ MORE
ACC, TaMo: These 5 cyclical stocks are showing 'Buy' signal on charts
ACC Ltd (ACC): Since June 2020, this counter has gradually been rising with the support of the 100-day moving average (DMA) currently placed at Rs 1,664 levels, as per the daily chart. On the higher side, some selling pressure can be observed around Rs 1,800 levels. Unless the counter conquers this resistance, the upside bias may witness profit booking. A successful close above Rs 1,800 means a breakout towards Rs 2,100 and Rs 2,400 mark. READ MORE
NSE trading to begin at 1 pm
Market will open at 1pm (pre-opening) and from 1:15 pm normal trades will start, suggest reports
COMMODITY VIEW :: Hitesh Jain, YES Securities on rally in copper prices
Low LME inventory levels, recovering global industrial demand, restrained supply and a weaker dollar is fueling perceptions that Copper is in the throes of a supercycle/reflation cycle. With LME backwardation widening, shorts that have hedged physical units must be covering their positions since they simply cannot sustain the interim margin calls. Short-covering by them as well as the lack of forward selling by others is likely further contributing to the run-up.
Tech glitch halts trading at NSE
NSE has multiple telecom links with two service providers to ensure redundancy. We have received communication from both the telecom service providers that there are issues with their links due to which there is an impact on NSE system.
- Impact on NSE system due to telecom service link issues
- We are working on restoring the systems
NEWS ALERT | NSE's F&O and cash markets got shut at 11:40 am due to tech glitch
This PSU stock rallies 134% in one month, scales 8-year high
Shares of Hindustan Copper continued their northward movement in Wednesday's session and rose 10 per cent to hit an eight-year high of Rs 128 on the BSE amid heavy volumes. The stock of state-owned copper producer was trading at its highest level since February 2013. At 11:20 am, the stock was trading 9 per cent higher at Rs 127 on the BSE as against a 0.88 per cent rise in the S&P BSE Sensex. READ MORE
How to choose the right trading time-frame for superior returns?
One of the most crucial aspects of trading is risk management and developing a trading model which facilitates uncertainty management. In order to do this, market participants use various tools to assess the market conditions. These tools assist traders in taking informed decisions that make trading and investments smoother and more secure. READ MORE
Strides Pharma Science arm gets USFDA nod for pain relieving drug
Drug firm Strides Pharma Science on Wednesday said its step-down wholly-owned subsidiary, Strides Pharma Global, has received approval from the US health regulator for Ibuprofen Oral Suspension, used to relieve pain. The approved product is bioequivalent and therapeutically equivalent to the reference listed drug (RLD), Children's Motrin Oral Suspension, 100 mg/mL, of Johnson & Johnson Consumer Inc.
Financials, RIL among top Sensex contributors today
Matrimony.com zooms 43% in 2 days, scales fresh record high
Shares of Matrimony.com hit a record high of Rs 1,160 after surging 19 per cent on the BSE in the intra-day trade on Wednesday. The stock has zoomed 43 per cent in the past two trading days. The stock of the leading consumer internet company in India surpassed its previous high of Rs 1,025 touched on September 21, 2017, also its debut day on the bourses. It zoomed 362 per cent from its 52-week low of Rs 251 touched in March 2020. READ MORE
Explained :: Why is a rise in bond yields a concern for everyone?
The 10-year bond yields touched 6.20 per cent on Monday, the highest since April 21, 2020. In the ordinary course of things, this may not sound much, but the Reserve Bank of India (RBI) has tried very hard to keep the yields below 6 per cent in this fiscal to enable the government to borrow cheaply. Bond investors obliged the RBI, but after the Union Budget this year, the mood has soured. READ MORE
Despite market rally, large-cap funds are struggling to generate alpha
A majority of large-cap-focused equity mutual fund (MF) schemes have underperformed the benchmark Sensex over the past year despite the record-setting market rally. Of 35 such schemes, only 9 have managed to generate alpha — a term used to describe a fund manager’s ability to beat the market. So, what weighed on the performance of large-cap funds? The underperformance of the financial pack. READ MORE
BUZZING STOCK :: Stove Kraft pares gains after jumping 10% post Q3 nos
> Revenue up 47% YoY at Rs 295 crore
> PAT up 277% YoY at Rs 33 crore
Analysis: Bubbles, bubbles bound for trouble?
The $6.2 billion-an-hour rise in the value of world stocks since March was dubbed the "mother of all asset bubbles" by BofA analysts last week - and all of a sudden there is a high-pitched hissing sound.
Electric car doyen Tesla, which raced up 750% in last year's frenzy, skidded into the red for 2021 on Tuesday, hit by a selloff of tech stocks and a plunge in Bitcoin, in which the carmaker recently invested $1.5 billion. READ MORE
Rupee gains 14 paise to 72.32 against US dollar in early trade
The rupee appreciated by 14 paise to 72.32 against the US dollar in opening trade on Wednesday supported by positive domestic equities and weakness of the American currency in the overseas market. Forex traders said the Fed Chairman Jerome Powell's dovish statement on the US economy also boosted investor sentiment.
ALERT :: Cash market prices on NSE not getting updated
>> Glitch being faced at certain places
Nava Bharat Ventures surges 15% as board to consider buy back proposal
Shares of Nava Bharat Ventures surged 15 per cent to Rs 67.30 on the BSE in the intra-day trade on Wednesday after the company announced that its board will consider share buyback proposal on Friday, February 26. The firm, on Tuesday after market hours, informed the stock exchanges that the meeting of the board of directors will be held on February 26, 2021, to consider the proposal for buyback of equity shares of the Company. READ MORE
SMC Global shares locked in 5% upper circuit post listing
Tata Consumer up 4%, hits new high on inclusion in Nifty50 from March 31
Shares of Tata Consumer Products hit a record high, up 4 per cent, of Rs 654 on the National Stock Exchange (NSE) in intra-day trade on Wednesday after the exchange said the Tata group company will be included in the Nifty50 index from March 31. The stock surpassed its previous high of Rs 646 touched on February 17. The Tata group company engaged in the tea & coffee business will replace state-owned Gail India. READ MORE
Current yields will lead to mark-to-market losses for banks: Murthy Nagarajan, CIO, Tata MF
The market has been spooked due to announcement of variable repo rate auctions by RBI to suck out excess liquidity. This excess liquidity problem is due to RBI intervention in the forex markets and is constraining the central bank to do more OMOs. We expect the RBI to do more OMO during this financial year-end to protect the banks’ balance-sheet. READ MORE
UPL slides 2% after fire broke out at one of the firm's plants
>> Two workers died and 26 were injured after a fire broke out at the company's Jhagadia Plant in Bharuch district in Gujarat.
Motherson Sumi up 2%
BUZZING :: Deepak Fertiliser surges over 3%
Coal India advances 3% on interim dividend proposal
>> CIL's board will meet on March 5 to consider the second interim dividend.
United Spirits up half a per cent
>> The company said it is initiating a strategic review of select popular brands as part of its strategy to continue "long-term profitable growth" through premiumising its portfolio.
Aurobindo Pharma up around a per cent
>> The company has inked a pact to acquire 26 per cent stake each in two Hyderabad-based solar power generating companies.
SPARC slips 1% as USFDA rules against its appeal
>> Sun Pharma Advanced Research Company (SPARC) said the USFDA has ruled against its appeal related to Taclantis, its under development product for treatment of breast cancer.
Tata Consumer Products hits 52-week high on Nifty50 inclusion decision
>> The Tata Group firm will replace GAIL India in Nifty50 Index from March 31, 2021, NSE said on Tuesday
Sectoral trends on NSE :: Green wave sweeps NSE
Sensex Heatmap :: Only 5 of 30 constituents trade in the red
Opening Bell :: Nifty tests 14,750
Top gainers and losers on S&P BSE Sensex at Pre-open
Markets at Pre-open
Markets at Pre-open
Stocks to watch: Tata Consumer, GAIL, NTPC, SBI Card, Sanofi India, REC
Tata Consumer, GAIL: The Tata Group firm will replace GAIL India in Nifty50 Index from March 31, 2021.
NTPC: State-owned NTPC said it has signed a share purchase agreement to buy GAIL's 25.51 per cent stake in Ratnagiri Gas and Power Pvt Ltd (RGPPL), which is commonly known as Dabhol project. In other news, the company raised Rs 900 crore through issuance of unsecured, redeemable, taxable, listed, rated non-convertible debentures. READ MORE
Trading tips by Ajit Mishra of Religare Broking
Buy Hindustan Petroleum Corporation Limited
Last close: Rs 244.90
Stop loss: Rs 225
Hindpetro has witnessed a strong rebound after forming a base above the support zone of moving averages ribbon on multiple time frames. The chart pattern indicates the potential of a gradual up move from hereon. Traders should use any dip to create fresh longs in the given range. READ MORE
Traders can lighten long positions in 15,000-15,100 zone: Vinay Rajani
The Nifty50 index has breached the crucial support of 14,753, which happened to be the previous top on the daily Chart. It has also violated the supports derived from 5, 10 and 20 days SMA. RSI oscillator has also exited overbought zone with negative divergence on the daily chart. However, we can not rule out the stock specific bullish moves. Current market setup is offering trading opportunities in both directions. As far as Nifty is concerned 15,000-15,100 is a zone, which should be utilized to lighten the trading long commitments. Support for the Nifty is seen at 14,336 odd levels, where 50 days EMA is placed. READ MORE
FII/FPI & DII trading activity on NSE, BSE and MSEI
Oil slips after US crude stocks rise amid deep freeze hit to refiners
>> Oil prices fell in early trade on Wednesday after industry data showed US crude inventories unexpectedly rose last week as a deep freeze in the southern states curbed demand from refineries that were forced to shut.
>> Crude stockpiles rose by 1 million barrels in the week to Feb. 19, the American Petroleum Institute (API) reported on Tuesday, against estimates for a draw of 5.2 million barrels in a Reuters poll. API data showed refinery crude runs fell by 2.2 million bpd.
>> US West Texas Intermediate (WTI) crude futures were down 55 cents or 0.9% at $61.12 a barrel, after slipping 3 cents on Tuesday.
SGX Nifty Update
>> At 8:40 am, the index was quoting 63 points higher at 14,763 levels.
Wall Street check
In the overnight session, the Down & S&P500 recouped early losses after Federal Reserve Chairman Jerome Powell signaled that the central bank was nowhere close to pulling back on its support for the pandemic-damaged US economy even as he voiced expectations for a return to more normal, improved activity later this year. Powell said that Fed would remain accommodative and would not change without advance warning.
Following which Nasdaq index closed down 0.5% as investors sold the big tech stocks that have driven the market rally since last March, and rotated into cyclicals, helping lift the Dow and S&P 500 0.05% and 0.13%, respectively.
Asian market check
MSCI’s broadest index of Asia-Pacific shares outside Japan, which has drifted 1.2% lower over the week as rising yields pressured valuations, rose 0.3% and S&P 500 futures rose 0.1%.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.