F&O expiry: Sensex gains 258 pts, ends Feb series 8% higher; RIL surges 4%

Topics MARKET WRAP | Markets | Sensex

Stock market updates: After a volatile trade on Wednesday, domestic players witnessed a lacklustre on Thurday. Equity benchmark indices remained parked near day's high for better part of the day, cooling off marginally only during the last hour of trade.

Strong gains in Reliance Industries, TCS, Axis Bank, NTPC, and IndusInd Bank helped the headline S&P BSE Sensex to settle the F&O series for the month of February at 51,039 levels, up 258 points or 0.5 per cent. With a 4.8 per cent gain, NTPC remained the top performing stock on the Sensex today, followed by up to 4.4 per cent gains in ONGC, Reliance Industries, IndusInd Bank, Axis Bank, and Power Grid.

On the downside, ICICI Bank, that dipped 2 per cent on profit booking, ended the session as the top drag. Nestle India , L&T, Titan Company, HUL, UltraTech Cement, and HDFC were some of the other top losers.

On the NSE, the Nifty50 index failed to reclaim the 15,100-mark on the closing basis and ended at 15,097 levels, up 115 points or 0.47 per cent. 

In the broader markets, the S&P BSE SmallCap index outperformed its large-cap peer today with a close at 20,305 levels, up 1.4 per cent. The index hit a record high of 20,321 points in Thursday's intra-day trade and surpassed its previous high of 20,183 touched on January 15, 2018. With the rise in markets and having tasted success, most experts believe that the interest of retail investors in the markets, especially the small-caps is here to stay – at least for now. READ MORE

The S&P BSE MidCap index, on the other hand, settled at 20,334 levels, up 1 per cent.

Among individual sectors, metal counters staged a stellar show with the Nifty Metal index closing 4 per cent higher. That apart, the Nifty Realty index closed with 1.7 per cent gains while the Nifty PSU Bank, Pharma, and Auto indices ended 1 per cent higher each.

February F&O series Wrap
The benchmark Sensex and Nifty50 index have gained 8 per cent during the February series, underperforming the broader markets where the Nifty MidCap 100 and the Nifty SmallCap 100 jumped 11 per cent each.

Sectorally, the Nifty Metal, PSU Bank, and Bank indices advanced 25 per cent, 40 per cent, and 20 per cent, respectively while the Nifty Auto index gained 4 per cent. On the downside, the Nifty IT and FMCG indices slipped around 2 per cent each.

Global markets
World stocks jumped on Thursday after U.S. Federal Reserve Chair Jerome Powell reaffirmed interest rates would stay low for a long time. In Asia, MSCI's ex-Japan Asia-Pacific shares index rose 1.5 per cent while Japan's Nikkei gained 1.7 per cent. Hong Kong's Hang Seng jumped 1.5 per cent.

In Europe, the pan-European STOXX 600 index was up 0.4 per cent, London's FTSE 100 gained 0.4 per cent, while Spain's CAC advanced 0.45 per cent.


TECH VIEW :: Ashis Biswas, Head of Technical Research, CapitalVia Global Research

The market witnessed some swift recovery from its short-term support around the Nifty50 Index level of 14650-14850. The expectation is that the level should range between 15250 and 15000 in days to come. Technical pieces of evidence are not supporting any significant momentum from a short-term perspective, and the market is likely to stay in this range. The momentum indicators like RSI, MACD to poised neutrally supporting.

MARKET CLOSING COMMENT :: S Ranganathan, Head of Research at LKP Securities

The day clearly belonged to the NIFTY PSE Index which rose 4% today after the plan announced yesterday to privatise and monetise assets of PSE. The broader market also witnessed keen investor interest in Power stocks

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

One more positive session and index managed to close at 15093 with gains of nearly one per cent & formed a gravestone Doji kind of candle pattern on the daily chart. On the immediate basis, the index has good support near the 15k mark if the index managed to sustain above the 15k mark then-current positive move can extend further towards the 15200-15250 zone which are the hurdle zone on the higher side and if fails to sustain then strong profit booking can be a witness

IPO Update :: Hernaba issue subscribed 81times till 3:50 PM on day 3 of the issue

Index contributors :: Banks, RIL, TCS lift Sensex

Sectoral trends on NSE at Close

Sensex Heatmap at Close


Strong gains in Reliance Industries, TCS, Axis Bank, NTPC, and IndusInd Bank helped the headline S&P BSE Sensex to settle the F&O series for the month of February at 51,039 levels, up 258 points or 0.5 per cent. 
On the NSE, the Nifty50 index failed to reclaim the 15,100-mark on the closing basis and ended at 15,097 levels, up 115 points or 0.47 per cent. 

India's fiscal position to remain weak even as deficit improves: Moody's

Meanwhile, Icra, Moody's Indian affiliate, said it expects a considerable rebound in India's economic growth in the fiscal year ending March 31, 2022 (FY22) on the back of higher central government spending, and a pick-up, albeit uneven, in consumption.
Overall, Icra projects that real Gross Domestic Product (GDP) will rise 10.5 per cent in FY22 and nominal GDP by 14.5 per cent for fiscal 2022 as the pandemic recedes. READ MORE

Reliance Inds gains 6% in 2 days, hits 4-month high on O2C biz spin off

RIL in a presentation on Tuesday, February 23, announced the initiation of the formal process of carving out the O2C business into a wholly-owned independent subsidiary. The management reorganised the refining and petrochemical businesses into O2C to facilitate holistic and agile decision making, pursue attractive opportunities for growth with strategic partnerships, and drive its downstream business. READ MORE

Weak Q3 show, margin pressures to keep Sanofi stock under pressure

Sanofi India posted muted December quarter results with revenues missing street estimates. While reported revenues were down 13 per cent over the year ago quarter the base quarter included export sales to Zentiva which has been discontinued from May last year.
In addition to the reduction of Rs 115 crore of exports sales, analysts at Nirmal Bang Research believe the weak turnover was partly attributed to some therapy areas being impacted negatively due to the Covid-19 restrictions. READ MORE

Analysts remain bullish on small-caps despite index hitting record high

Small-cap stocks have been on a roll since the past few months with the S&P BSE Smallcap index hitting a record high of 20,290 points in Thursday’s intra-day trade. The index surpassed its previous high of 20,183 touched on January 15, 2018 in intra-day deals. Despite the index hitting record levels, analysts see more headroom for the stocks in this segment as the economic recovery gathers steam, which they believe, should be beneficial for companies in the mid-and small-cap space. READ MORE

Disconnect between markets, real economy a global phenomenon: Sebi chief

Capital markets regulator Sebi chairman Ajay Tyagi on Thursday acknowledged the systemic risk concerns raised by the RBI and Financial Stability Board over a disconnect between financial markets and the real economy, but said that this is a global phenomenon.
He said the heavy fall in markets, followed by quick gains on the equity benchmarks since the onset of the pandemic is the sharpest V-shaped recovery in the last 30 years. READ MORE
Ajay Tyagi, Chairman, SEBI

Market breadth in favour of buyers

Hemang Jani, Head of Equity Strategy, MOSL on Nureca listing

Nureca, a home healthcare and wellness product company, listed today on the exchanges with a 58.7% premium against its issue price of Rs 400/share. The company is known for its product innovation and some of its known brands are Dr Trust, Dr Physio and Trumom. It delivered robust performance over FY18-20 with revenue PAT CAGR of 123%/43%. In 1HFY21, Revenue/PAT grew 1.2x/6x compared to FY20 financials. Given the huge opportunity in Home Healthcare segment, its asset light business model, competitive and well-diversified products, Nureca is likely to sustain its growth momentum in subsequent years. It currently trades at P/E of 8.9x FY21E annualized EPS which is very attractive.

L&T Technology Services selected by Airbus for Skywise Partner Programme

L&T Technology Services (LTTS) announced on Thursday it has been selected by Airbus to provide technology and digital engineering solutions for Airbus' Skywise platform as part of the 'Skywise Partner Programme'. With more than 130 airlines around the world already connected to Skywise, the platform is playing a very important part in enabling and accelerating digital transformation of the aviation sector as a whole, according to an LTTS statement.
(Text Source: PTI)

MARKET UPDATE:: Broader indices outperform benchmarks; India VIX cools off 4%

European markets check

(Source: Reuters)

NEWS ALERT :: Shapoorji Pallonji & SBI sign MoU to offer faster home loan approvals to homebuyers

(Source: CNBC TV18)

Tata Motors, Tata Consumer: Tata Group stks may lead the next market rally

Tata Consumer Products, the FMCG unit of Tata Group, is set to enter the benchmark Nifty50 index from March 31, 2021. With the arm's inclusion, weightage of Tata Group stocks in Nifty pack will increase to 8.75 per cent from 8.15 per cent presently. At the moment, Tata Consultancy Services, Tata Steel, Tata Motors and Titan are already part of the benchmark index. READ MORE

RBI balance sheet not compromised by liquidity operations: Shaktikanta Das

The Reserve Bank of India (RBI) did not compromise on its balance sheet while providing liquidity to the bond market through asset purchases, governor Shaktikanta Das said on Thursday. The central bank, so far, this fiscal, has purchased over Rs 3 trillion of central and state government bonds from the secondary market to provide liquidity to the system. READ MORE

RailTel: Analysts expect shares to list at 16-18% premium over issue price

Shares of RailTel Corporation of India were commanding a premium of Rs 15-17 per unit in the unlisted market ahead of their debut on exchanges on Friday, February 26, implying listing gains of 16-18 per cent over the issue price of Rs 94 per share. But a correction in the secondary market has dented the listing pop by nearly 50 per cent for RailTel shares as they were trading at Rs 109-112 apiece in the unlisted market from Rs 122 earlier. READ MORE

Bharti Airtel raises $1.25 bn through debt instruments

Bharti Airtel on Thursday said it has raised USD 1.25 billion through issuance of debt instruments. The debt fund raising by the company comes just before the start of spectrum auction valued at Rs 3.92 lakh crore. Airtel said this is the first ever dual-tranche US dollar bond issued by the company spread across senior and perpetual issuance.

Zydus Cadila gets USFDA nod for antidepressant drug

Zydus Cadila on Thursday said it has received final approval from the US health regulator to market antidepressant Nortriptyline Hydrochloride capsules. Zydus Cadila has received final approval from the United States Food and Drug Administration (USFDA) to market Nortriptyline Hydrochloride capsules USP, in strengths of 10 mg, 25 mg, 50 mg and 75 mg, Cadila Healthcare said in a regulatory filing. 

(Text Source: PTI)

India's recession exit gains momentum on services, manufacturing

India’s economy looked ready to leave a sharp downturn behind in the new year, as business and consumer activity showed more signs of gathering momentum in January. Two of the eight high-frequency indicators tracked by Bloomberg News improved last month, while five held steady and one deteriorated. That, for now, kept the needle on a dial measuring overall economic activity unchanged at 5 -- a number arrived at by using the three-month weighted average to smooth out volatility in the single-month scores. READ MORE

Nifty FMCG index trades lower in an otherwise firm market

NEWS ALERT :: Bharat Electronics to consider 2nd interim dividend for FY21 on March 16

MARKET CHECK :: Sensex off highs

Tata Chemicals hits fresh lifetime high; stock zooms 100% in 3 months

On December 4, 2020, Tata Sons purchased 2.57 million equity shares, representing 1 per cent equity of Tata Chemicals, at a price of Rs 471.88 per share on the NSE via bulk deal, the exchange data shows. Earlier, on December 2, 2020, Tata Sons had purchased 1.8 million equity shares, representing 0.71 per cent equity of Tata Chemicals, at a price of Rs 420.92 per share on the NSE via bulk deal, data shows. READ MORE


>> Moody's pegs India's GDP in FY22 at 13.5%

>> GDP growth pegged at 6.2% in FY23

RCF surges 15% as ICRA reaffirms ratings with positive outlook

The revision in outlook to ‘Positive’ factors in the disbursal of additional subsidy announced under the Atma Nirbhar Bharat Package 3.0 for the fertilizer sector which is expected to reduce the subsidy arrears of RCF which would, in turn, lead to decline in short-term borrowings and interest costs and consequently, strengthen the debt coverage metrics, ICRA said in rating rationale. READ MORE

Embargo on grant of biz to pvt banks lifted; analysts ask PSBs to step-up

Private bank stocks such as Axis Bank and IndusInd Bank were ruling the bourses on Thursday, a day after Finance Minister Nirmala Sitharaman announced lifting of embargo on private banks against participation in government business. At 11:00 am, Axis Bank was quoting 4.2 per cent higher at Rs 781 on the National Stock Exchange (NSE), and was the second best performing stock on the index. READ MORE

NEWS ALERT :: Have clear idea about the size of NPAs building in the system: Shaktikanta Das

>> The key to address this issue is improving governance, functioning of audit/risk-management committees of banks

NEWS ALERT :: Working on improving regulatory framework for MFIs, says RBI guv

>> We are also working on improving regulatory architecture of ARCs

>> Bad Bank is a PSB-initiated proposal and backed by govt during Budget. It  will, in no way, jeopardise working of ARCs

Shaktikanta Das on fuel prices

>> Going forward expect central & state govt to take co-ordinated decision on taxes on petrol & diesel prices

MSME sector in India has emerged as growth engine of economy: RBI Guv

RBI working on having a central bank digital currency: Shaktikanta Das

Lot of work going on central bank internally, will come with guidelines shortly

NEWS FLASH :: Going forward need to focus on improving health sector, says Das

>> Domestic industry should focus on improving quality & exports

Lenthening of delivery times leading to rise in commodity prices needs attention: RBI Governor

RBI Governor pledges support to MSMEs

>> RBI stands ready to support SIDBI for greate credit penetration to MSMEs: Das

External sector outlook will continue to be reshaped by headwinds and tailwinds: Das

- Decline in remittances was offset by lowet trade deficit
- Surplus on capital and currenct a/c reflected in build-up of forex reserves

Will continue to support recovery by providing ample liquidity: Shaktikanta Das

- Sensex and Nifty held gains and traded 1% higher as RBI Governor promises support for economy 

PLI will make India an integral part of global value chain: Das, RBI Governor

Recovery in service trade yet to gain traction: Das

>> India's net services exports remain relatively resilient
>> Manufacturing sector spearheading growth recovery

RBI's asset purchases didn't dilute its balance sheet: Shaktikanta Das, RBI Governor

Will continue to support financial stability, says Das at an event of Bombay Chamber of Commerce

RBI Governor Shaktikanta Das says:

>> Deficit and debt levels have soared across countries
>> Central banks proactively implemented conventional and unconventional measures
>> Central banks expanded asset purchase programme; facilitated long-term low rates

Policy responses in earlier pandemics focussed on public health: Das, RBI Guv

- Growth became excessively dependent on govt expenditure

Propose to focus on the theme of creating new opportunities for growth: Das, RBI Guv

>> Studying the impact of pandemic and policy responses provide a backdrop
>> Shaktikanta Das, RBI Governor at the 185th Foundation Day Celebration of BCC

IIFL Securities up 40% in 2 days on winning bid to acquire Karvy's accounts

Shares of IIFL Securities, on Thursday, shot up 17 per cent to hit a record high of Rs 65.60 on the BSE in intra-day, thereby surging 40 per cent in the past two trading days, after the company emerged as the successful bidder for demat accounts held by Karvy with National Securities Depository (NSDL) and Central Depository Services (India) (CDSL). READ MORE

Will issue guidelines to have more transparency in the ESG issues: Ajay Tyagi, Sebi chair

- ESG issues have seen increased investments from Indian markets as well

NEWS ALERT :: 29% of total IPO funds were raised via fresh issue till Jan this year, says Sebi chairman

>> This is against 19% over the same period last year

>> This shows healthy investor interest and swift recovery of businesses post the Covid-19 pandemic

Alert: Ajay Tyagi is addressing a webinar at the National Institute Of Securities Markets

Sebi chairman Ajay Tyagi says:

- RBI & other institutes have raised concerns about disconnect of the market with real economy
- Last 3 months, monthly net outflows in MF equities have increased

From BSE to Tokyo Stock Exchange, here's a history of trading outages

Trading stoppages are a common occurrence not just in India, but globally as well. Often the causes are software glitches, hardware failures and internet connectivity problems. We look at some of the important instances.
July 3, 2014: BSE halts trading for three hours due to network outage
July 4, 2017: A Nasdaq glitch shows prices of major tech stocks, including Alphabet as $123 per share—86 per cent below actual value. READ MORE

BUZZING STOCK :: Nureca shares rise another 5% after listing at 59% premium

NEWS ALERT :: RBI guv to address the Bombay Chamber of Commerce and Industry today

>> Address is scheduled at 11 am

Crude oil's fate could be in hands of commodity supercycle

A swathe of commodities assessed by S&P Global Platts have started 2021 with a bang. Copper, arguably the most critical of industrial metals, has burst beyond $9,000/mt for the first time in a decade. And high-profile investment banks have talked up the prospect of a commodity supercycle – a protracted upward rise in prices due to a structural shift in the way demand outpaces supply. READ MORE
PAUL HICKIN, associate director at S&P Global Platts

NEW LISTING :: Nureca lists at Rs 635 apiece, a premium of 59% against issue price of Rs 400

Max Financial surges 10% as Axis entities get nod for stake buy in Max Life

Shares of Max Financial Services, on Thursday, were locked in 10 per cent upper circuit at Rs 938.65, also its record high, on the BSE, after the Insurance Regulatory and Development Authority of India (IRDAI) gave its approval for the acquisition of up to 12 per cent stake in Max Life Insurance (Max Life) by Axis Bank and its subsidiaries Axis Capital and Axis Securities (Axis Entities). READ MORE

NEW LISTING :: Nureca trades at Rs 635 apiece against issue price of Rs 400

Voda Idea gains 2% on change in directorate

ALERT :: India VIX cools off over 3%

>> The volatility index was last quoting at 23.35 levels, down 3.4%

Mphasis declines 1.5% in a strong market

>> Private equity Carlyle Group has emerged as the sole bidder to acquire Blackstone Group-owned Mphasis, in what would be the largest buyout in the Indian IT industry, a media report said.

Dredging Corporation of India hits 52-week high

>> India is set to attain self-reliance in manufacturing of dredgers with Cochin Shipyard and Dredging Corporation collaborating with IHC Holland BV to locally build equipment.

Indiabulls Real Estate jumps 6%

>> The Competition Commission of India (CCI) approved the proposed merger of NAM Estates Pvt Ltd and Embassy One Commercial Property Developments Pvt Ltd into Indiabulls Real Estate (IBREL).

Affle India trades 1% up after promoter offloaded shares

>> Affle Holdings Pte Ltd, a promoter of Affle (India), on Wednesday, offloaded 3 lakh shares of the company worth over Rs 161 crore through an open market transaction.

Max Financial Services surges 10% on Irdai approval to deal with Axis Bank

>> The Insurance Regulatory and Development Authority of India (IRDAI) has given its approval for the acquisition of up to 12 per cent stake in Max Life Insurance by Axis Bank and its subsidiaries Axis Capital and Axis Securities.

Private banks rally as Centre lifts embargo on govt-business

Sectoral trends on NSE :: Largely all the indices trade 1% higher

Sensex Heatmap :: Banks, IT outperform indices

First Trade

First Trade

NEWS ALERT :: Angel Broking partners Vested Finance for Indians to invest in US‐based stocks

Ashok Leyland in focus :: Co acquires additional 38% stake in Hinduja Tech

>> Acquisition done from Nissan International for Rs 70.2 crore
Alert: Ashok leyland now holds 100% stake in Hinduja Tech after this acquisition

Commodity Heatmap :: Silver, zinc, copper gains 1% each

Nifty50 up 1 % in pre-open trade

Sensex tops 51,200 in pre-open

NEWS ALERT :: NSE issues statement on Wednesday's outage

>> Online risk management system was unavailable, market function could not continue n ormally and had to be shut down

>> NSE says it has multiple telecom links with two service providers to ensure redundancy. It received communication of instability of all links from both service providers.

>> Awaiting detailed responses from telecom services providers

Top stocks to watch today

Nureca: Shares of Nureca will list on the bourses today. The IPO by home healthcare and wellness products provider that ran between February 15-17 witnessed 40 times subscription.
Max Financial Services, Axis Bank: The Insurance Regulatory and Development Authority of India (IRDAI) has given its approval for the acquisition of up to 12 per cent stake in Max Life Insurance by Axis Bank and its subsidiaries Axis Capital and Axis Securities. READ MORE

Trading strategies for copper and zinc

Sell Copper | TGT: 683 | Stoploss 714
Copper is in overbought zone as RSI_14 is at 80. Exhaustion is being witnessed as on the daily scale, we have seen emergence of ‘Bearish Engulfing’ candlestick pattern. Prices are due for correction as copper is trading far from its short-term moving average of 20 DMA. Historically, prices do not sustain far from its moving average, so we are anticipating pullback and recommending short position with stoploss of 714 closing basis. READ MORE

Bulk deals on the BSE as on Wednesday

Bulk deals on the NSE as on Wednesday

FIIs, FPIs pump in Rs 29,000 cr on Wednesday

Rupee check

Source: Bloomberg

Oil check

SGX Nifty indicates gap-up start

>> At 8:30 am, the index was ruling 258 points higher at 15,064 levels

US stocks

In overnight trade, the Dow Jones set a record high rising 1.3 per cent while the S&P 500 gained 1.1 per cent. The Nasdaq index, which fell as much as 1.3 per cent earlier in the session, regained its footing and closed up 0.99 per cent.

Asian market check

Asian stocks perked up on Thursday after US Federal Reserve Chair Jerome Powell reaffirmed interest rates would stay low, calming market fears that higher inflation might prompt the central bank to tighten the monetary spigot.
Australia’s ASX 200 rose 0.9 per cent in early trade while Japan’s Nikkei added 1.6 per cent. Hong Kong’s Hang Seng index also rose half a per cent.

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