Stock market updates: Domestic markets snapped the streak of weekly losses even as sombre global mood butchered bulls at the bourses for two days straight. A rise in Brent crude prices along with a jump in bond yields acted as the double whammy on stocks on Friday, pushing benchmark equity indices down by nearly a per cent. However, a tilt towards defensives towards the fag-end of the session lifted markets off-lows.
Among headline indices, the S&P BSE Sensex ended at 50,405 levels today, erasing 441 points or 0.87 per cent. From the day's high of 50,886, the index tumbled 726 points to hit a low of 50,160. Financial, pharma, and IT counters were the top drags on the index today with IndusInd Bank, State Bank of India, ICICI Bank, HCL Tech, Bajaj Finserv, Infosys, Dr Reddy's Labs, Sun Pharma, and HDFC leading the list of losers. All these stocks were down in the range of 1.7 per cent to 5 per cent.
On the upside, ONGC, Maruti Suzuki, Nestle India, Titan, Reliance Industries, and L&T supported the markets with up to 2.5 per cent gains.
On the NSE, the Nifty50 settled above the 14,900-mark at 14,938, down 143 points or 0.95 per cent. 38 of the 50 stocks declined on the Nifty today, while 12 advanced.
All the sectoral indices were painted red amid across-the-board sell-off. The Nifty PSU index plunged 4 per cent on the NSE, followed by the Nifty Metal index (down 3 per cent), and the Nifty IT and Realty indices (down 2 per cent each). The Nifty Bank, Auto, FMCG, and Financial Services indices slipped between 0.5 per cent and 1.7 per cent.
In the broader markets, the S&P BSE MidCap and SmallCap indices dropped 1.9 per cent and 1.5 per cent, respectively.
The overall market breadth favoured bears with 1,904 stocks ending the day in the red, compared with around 1,083 stocks that advanced on the BSE.
A late rally in Chinese shares on Friday helped pull Asian stocks off one-month lows as investors picked bargains while attention shifted to US non-farm payrolls due later in the day.
Australian stocks dropped more than 0.7 per cent, Japan's Nikkei share average shed 0.2 per cent, and shares in South Korea fell 0.4 per cent.
Chinese shares, which had opened in the red, reversed losses with the bluechip CSI300 index up 0.3 per cent. That left MSCI's broadest index of Asia-Pacific shares outside of Japan down 0.4 per cent.
In Europe, the pan-European STOXX 600 fell 0.7 per cent.
In the commodities market, oil prices jumped more than $1 a barrel on Friday, hitting their highest levels in nearly 14 months, after OPEC and its allies agreed not to increase supply in April.
Brent crude futures for May rose to as high as $68 a barrel on Friday, a level not seen since Jan. 8, 2020. The contract was on track for a near 3 per cent gain in the week.
MARKET CLOSING COMMENT :: Shrikant Chouhan, Executive VP, Equity Technical Research at Kotak Securities
On the weekly basis, despite the market closed in the positive territory the market mood was sluggish. A substantial jump in the long term treasury yields and upward activity in the dollar index towards 92, resulted in weakness across the globe. The Nifty/Sensex closed below the crucial supports of 14950 and 50500 on a daily basis. The bank nifty has narrowed down the trading range and closed at an unchanged level on a weekly basis. The dollar index has formed a series of higher high and higher low that could be the cause of concern as it controls or curtail inflows for emerging markets.
On a daily basis, the market has formed the long-legged Doji formation, which is an indication of indecisiveness. However, in the short term until the market is not breaking 15280 levels our bias should be on the downside.
Outlook: In the coming week, we could see, Nifty/Sensex touching minimum 14750/50000 or 14550/49300 levels. On the higher side, 15150/51200 and 15280/51600 would be major hurdles. The focus should be on FMCG and Auto companies.”
TECH VIEW :: Ashis Biswas, Head of Technical Research, CapitalVia Global Research
The market witnessed some lackluster movement. Nifty 50 Index is still trading below the resistance level of 15250. the expected level should range between 14900 and 15250, and it’s going to be crucial for the short-term market scenario to stay above the 15050 levels. While it is subject to further price action evolution, It is prudent to wait for a decisive breakout above 15250 and technical factors to improve before going long in the market. the traders are advised to refrain from building a new buying position until further improvement.
MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities
Indices opened weak on the back of Jerome Powell remarks and rising oil prices. Profit booking in Metals & Financials kept markets in the red throughout the day. The key highlight was the huge response seen to the IPO of MTAR Technologies as investors rushed subscriptions on its last day today
IPO Update :: MTAR Tech issue subscribed 200x till 3:50 PM on final day of the issue
SECTOR OF THE DAY :: FMCG stocks outperform in a subdued market
SECTOR OF THE DAY :: PSBs bleed; Bank of Baroda, Canara Bank top losers
Stocks that dragged the Sensex lower today
Sectoral trends on NSE at Close
Sensex Heatmap at Close
Among headline indices, the S&P BSE Sensex ended at 50,405 levels today, erasing 441 points or 0.87 per cent. From the day's high of 50,886, the index tumbled 726 points to hit a low of 50,160.
On the NSE, the Nifty50 settled above the 14,900-mark at 14,938, down 143 points or 0.95 per cent. 38 of the 50 stocks declined on the Nifty today, while 12 advanced.
NEWS ALERT :: Govt panel recommends extending coal supply to NALCO's plants for 2 years, reports Bloomberg
NEWS ALERT :: ICICI Lombard approves interim dividend of Rs 4 per share
CSB Bank surges 16% in a weak market, hits fresh 52-week high
Shares of CSB Bank, on Friday, rallied 16 per cent to a fresh 52-week high of Rs 273.95 on the BSE in an otherwise weak market on the back of heavy volumes. The stock surpassed its previous 52-week high of Rs 270, touched on November 10, 2020. It hit an all-time high level of Rs 314 on December 5, 2019. READ MORE
Oil soars to near 14-month high as OPEC+ extends output cuts into April
Oil prices jumped more than $1 a barrel on Friday, hitting their highest levels in nearly 14 months, after OPEC and its allies agreed not to increase supply in April as they await a more substantial recovery in demand amid the coronavirus pandemic. Brent crude futures for May rose to as high as $68 a barrel on Friday, a level not seen since Jan. 8, 2020. The contract was up $1.09, or 1.6%, to $67.83 a barrel at 0730 GMT, and was on track for a near 3% gain in the week. (Source: Reuters)
Wealth managers frustrated over bitcoin, anxious for piece of the action
The rollercoster ride in bitcoin since the start of the year has not dampened wealth manager Jim Paulsen's enthusiasm for the cryptocurrency. Yet Paulsen, chief investment officer for Leuthold Group, which manages $1 billion, cannot own bitcoin in client portfolios due to regulatory constraints. This has left him on the sidelines watching the world's most popular cyrptocurrency surge more than 900% since its March lows in volatile trading that also saw bitcoin lose more than 20% in the span of a few days. READ MORE
Laurus Labs falls 5% as promoters sell 1.3% stake in company
Shares of Laurus Labs were trading 5 per cent lower at Rs 349 on the BSE in intra-day trade on Friday, down 9 per cent from Thursday’s high, after the promoters of the firm sold 1.3 per cent stake in the company for Rs 258 crore via the open market to release pledged shares. “Dr Satyanarayana Chava, founder promoter, CEO & ED, sold 5.2 million equity shares of the company in the stock market at an average price of Rs 368.59, per share, aggregating to Rs 191.67 crore,” Laurus Labs said in a press release. READ MORE
OPEC ignores India's call; Saudi asks New Delhi to use cheap oil it bought last year
International oil prices rose after OPEC and its allies ignored India's plea to ease production control, with Saudi Arabia asking New Delhi to instead use oil it bought at rock bottom rates last year. India's Oil Minister Dharmendra Pradhan had in the run-up to Thursday's OPEC meeting urged the producers' group to ease production curbs to fulfil their promise of stable oil prices. (Source: PTI)
Powell disappointment hits European stocks, tech slides again
Rising US bond yields put European equities under pressure again on Friday after Federal Reserve Chair Jerome Powell’s remarks failed to soothe investor concerns about a recent surge in borrowing costs. The pan-European STOXX 600 fell 0.9 per cent in early trading, with shares of travel, mining, and financial services companies leading the declines. While Powell said the rise in yields was “notable”, he did not consider it a “disorderly” move, or one that pushed long-term rates so high the Fed might have to intervene in markets more forcefully to bring them down. READ MORE
Market breadth in favour of seller
> Advance-decline ratio on BSE stood at nearly 1:2 in afternoon session
Sensex Heatmap | Top gainers & losers as index slides 650 points
India VIX jumps nearly 8% to 26.02
> VIX is a measure of volatility in the market
Value of delisting offers at record-high amid pandemic surge, shows data
Majority shareholders offered more money to take their companies off the stock exchanges this year than in the previous 17 years. The value of such delisting offers for the financial year 2020-21 (FY21) was a record Rs 22,165.5 crore, show numbers from Prime Database. This is the highest show records available since FY04. It is more than four times the previous high of Rs 5,479.4 crore in FY16. READ MORE
Quick Heal zooms 8%, hits 52-wk high as board to consider buyback proposal
Shares of Quick Heal Technologies, on Friday, soared up to 8 per cent to a fresh 52-week high of Rs 187 on the National Stock Exchange (NSE), in an otherwise weak market, after the company said its board will consider a share buyback on March 10, 2021. The security software provider's stock has advanced 9.1 per cent in the last one month (till Thursday) as compared to a 1.2 per cent rise in the benchmark Nifty50 index. READ MORE
Vodafone Idea slips 4% amid reports of fund raising plan hitting a snag
Shares of Vodafone Idea (Vi) slipped over 4 per cent to Rs 10.53 on the BSE in intra-day trade on Friday amid reports that the debt-laden telco's fund-raising plans have landed in a soup. Vi’s talks with the Oak Hill consortium have not led to a binding agreement as there were unresolved issues around funding terms, guarantees and claims to the struggling telco’s assets in case of a payment default, a report by Economic Times stated. READ MORE
NEWS ALERT :: BEML appoints Deloitte Haskins & Sells LPP as Consultant for firm's demerger
>> Deloitee to advise, undertake and implement Demerger of Non-core assets of the Company.
SECTOR WATCH:: Nifty PSU Bank index dips 3%
NEWS ALERT :: PVR opens a new 6-screen property in Mysuru
MARKET UPDATE:: Broader indices underperform benchmarks
Shilpa Medicare gets tentative USFDA nod for Apremilast tablets
Drug firm Shilpa Medicare on Friday said it has received tentative approval from the US health regulator for Apremilast tablets, used in the treatment of psoriatic arthritis. The newly approved product is a generic equivalent of reference listed drug (RLD) Otezla of Celgene.
Stocks that hit 52-week high on BSE today in an otherwise volatile market
Wipro's $1.45 bn deal with Capco disappoints Street; here's why
Dalal Street gave a lukewarm response to Wipro's buyout worth $1.45 billion (over Rs 10,500 crore), its biggest ever, of London-headquartered Capco as the shares of the firm tanked 4 per cent on the BSE to Rs 421.30 in Friday's trade following the announcement of the deal. Wipro, on Thursday, said the acquisition will provide it access to 30 new large banking and financial clients and strengthen its position in the Banking, Financial Services and Insurance (BFSI) sector. READ MORE
IndusInd Bank slips to day's low
NEWS ALERT :: Coal India to pay interim dividend of Rs 5 per share
The Board of Directors in its meeting held on Friday had approved payment of 2nd interim dividend for the financial year 2020-21 at Rs 5 per share of the face value of Rs 10 per equity share. The company has fixed Tuesday, 16th March as 'Record Date' for the purpose of payment of said dividend. The date of payment of 'Interim Dividend' is on and from 24th March.
PNB Housing Finance, Yes Bank sign strategic co-lending pact home loans
PNB Housing Finance on Friday said it has tied up with Yes Bank for a strategic co-lending service that will facilitate retail home loans at competitive rates. PNB Housing and Yes Bank will synergise capabilities to provide an efficient and seamless experience to existing and new retail home loan customers, PNB Housing Finance said in a regulatory filing. READ MORE
Deepak Nitrite: Analysts see further upside despite 135% rally in 6 months
Shares of Deepak Nitrite have held out against the market volatility over the past two weeks. As against a per cent decline in the frontline S&P BSE Sensex, the stock has jumped nearly 23 per cent during the period. Over the past six months, the stock has clocked a massive 135 per cent rally compared with a 27 per cent gain in the Sensex index. And analysts see more upside to the rally. READ MORE
MCX Gold has declined for yet another session as the rising 10Y bond yield (1.45%) & DXY above 91 has hurt the sentiment these days. Week-on-week MCX Gold is down by ~2% now. The SPDR Gold ETF has witnessed liquidation for the 12th straight session. Comex gold has a crucial support of $1,700. Focus is on Fed Chair Powell's virtual speech tonight for more cues. Trend is bearish but its good level to start accumulating. There is further pain in price but jewellery demand will provide support around Rs 44,600 - 44,400.
Gold slides to nine-month low as Powell's remarks make yields rally
Gold declined to a near nine-month low on Friday and was set for a third straight weekly decline, as the dollar and bond yields rose after Federal Reserve Chair Jerome Powell's remarks that the rise in yields were not "disorderly." Spot gold eased 0.3 per cent to $1,692.13 per ounce, having earlier fallen to its lowest since June 8 at $1,686.40. For the week so far, it is down 2.3. US gold futures fell 0.6 per cent to $1,690.40. READ MORE
Tech view: How to trade Wipro post $1.45 billion acquisition of Capco
From a technical viewpoint, this counter needs to conquer the resistance of Rs 450 for a decisive breakout towards Rs 480 and Rs 500 levels. This resistance has become an important obstacle, which the counter is struggling to overcome in recent times. The overall trend is optimistic with the support of the 50-day moving average (DMA), currently placed at Rs 425 levels, as per the daily chart. READ MORE
MARKET ALERT :: ICICI Bank reduces home loan interest rate to 6.70%
New interest rate applies to home loans up to Rs 75 lakhs
RBI's policy responses to support economy weren't very impactful: Study
The Indian central bank’s conventional as well as unconventional policy responses to support the economy through the pandemic failed to reduce the government’s borrowing costs by a lot, says a new study. READ MORE
UltraTech Cement, on Friday, joined the elite club of companies with Rs 2-trillion market capitalisation (market-cap) on the BSE after the company's stock price rose 2.5 per cent and hit a new high of Rs 6,946 in intra-day trade. The stock has rallied 14 per cent in the current week, on robust demand and price hike reports. READ MORE
PSU banks stage a comeback as tactical picks on sustained performance
It is nearly after 13 years that a foreign brokerage has resumed holistic coverage on stocks of public sector banks (PSBs). To that extent, Morgan Stanley’s report dated March 3, where the analysts have listed their order of preference for PSB stocks, is an indication that the state-owned banks may once again be attracting some interest, thanks to three back-to-back quarters of good results in FY21 so far. "State-owned banks' balance sheets have improved, and bad loans formation should moderate going forward,” the analysts note and this is the key reason for them to relook at their stance on PSBs. READ MORE
Heranba Industries lists at 44% premium over issue price of Rs 627
Shares of Heranba Industries made a strong debut on the bourses on Friday with the stock listing at Rs 900, a 43.5 per cent premium over its issue price of Rs 627 per share on the BSE. The stock extended its gains and traded as high as Rs 944.95 in intra-day deals. The initial public offer of the Gujarat-based firm was subscribed 83 times. The institutional investor portion was subscribed 67 times. The wealthy investor portion by 271 times, and retail investors subscribed 11 times the portion reserved for them. READ MORE
MARKET CHECK :: Sensex turns positive
10-year benchmark bond yield opens at 6.18% vs previous close of 6.21%
NEW LISTING:: Heranba Industries lists at Rs 900 on BSE, at 43% premium over issue price
MARKET VIEW | V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
The 'bond bears vs equity bulls' game continues in the US market with similar reverberations in other developed and emerging markets. The highly valued Nasdaq appears to be in a short- phase of reversion to mean, having declined 10% from record highs. The US 10-year yield has again spiked to 1.575% giving further ammunition to bond bears. Back home, both FIIs & DIIs turned sellers yesterday impacting market sentiments. The steady rise in dollar index also is not good news for FII inflows. Inspite of all these the texture of the market remains ' buy on dips' since the 'growth & earnings recovery story' is in tact and ample liquidity is available waiting to be invested. The comments of the Fed chief Jerome Powel before the FOMC Meet will be keenly watched by the market. The outperformance of mid-small-caps is likely to continue.
Indiabulls Housing Finance dips 1% despite fund raising plan
>> The company has raised $150 million (Rs 1,091 crore) by issuing foreign currency convertible bonds, the company said on Thursday. The bonds are proposed to be listed on Singapore Exchange Securities Trading Ltd.
Indian Bank up half a per cent
>> The company has reported three accounts as fraud to the RBI with total outstanding of over Rs 35 crore.
Mindspace Business Parks REIT trades marginally lower despite fund raising plan
>> Mindspace Business Parks REIT plans to raise up to Rs 450 crore through the issue of debt securities.
Axis Bank declines 1%
>> The private lender, on Thursday, said that one of its promoters, National Insurance Company, has asked it to classify the insurer as a public shareholder.
Wipro slips in trade despite $1.45 billion deal
>> Set to be its biggest ever buyout, Wipro will acquire London-headquartered Capco in a $1.45 billion (over Rs 10,500 crore) deal.
Sectoral trends on NSE :: All indices barring media trade in the red
Sensex Heatmap at Open :: ONGC, NTPC trade higher in a weak market
Top gainers and losers on S&P BSE Sensex at Pre-open
Markets at Pre-open
Markets at Pre-open
Tejas Networks in focus :: GigNet selects co for its Metro Optical network in Cancun
Top stocks to watch today
Wipro: Set to be its biggest ever buyout, Wipro will acquire London-headquartered Capco in a $1.45 billion (over Rs 10,500 crore) deal.
Heranbas Industries: Shares of Heranba Industries will list on the bourses today. The issue price has been fixed at Rs 627 per share. READ MORE
Bull Spread strategy on Dr Reddy's Labs
Buy DR REDDY'S MARCH 4,600 Call at Rs 182 & simultaneously sell 4,800 Call at Rs 106
Lot Size: 125
Cost of the strategy: Rs 76 (Rs 9,500 per strategy)
Maximum profit: Rs 15,500 If Dr Reddy's closes at or above 4,800 on March 25 expiry.
The stock is in the cycle of "higher highs-higher lows" and is strongly poised to test its 52-weeks high zone in the coming future. In the past couple of sessions, it has consolidated near the previous high, indicating strong hands accumulating the counter at higher levels and also witnessed a run-away gap on daily chart affirming the bullish trend. Even on the front of the indicators, MACD is comfortably placed above its signal-line and 14 period RSI has witnessed positive crossover re-affirming the stock to surge higher in the coming future. READ MORE
FII/FPI & DII trading activity on NSE, BSE and MSEI
Oil extends gains on OPEC+ supply restraint
>> Oil prices rose early on Friday, adding to big gains overnight after OPEC and its allies agreed to not increase supply in April as they await a more solid recovery in demand from the coronavirus pandemic.
>> US West Texas Intermediate (WTI) crude futures climbed 17 cents, or 0.3%, to $64.00, holding below a 13-month high hit on Thursday.
>> Brent crude rose 10 cents, or 0.2%, to $66.84 a barrel, but down from a high of $67.75 hit on Thursday.
SGX Nifty indicates gap-down start
>> At 8:35 AM, the index was at 14,941 levels, down 130 points.
Wall Street check
In the overnight session, Wall Street indices ended sharply lower after remarks from Federal Reserve Chair Jerome Powell disappointed investors worried about rising longer-term US bond yields.
Powell’s comments, which did not point to changes in the Fed’s asset purchases to tackle the recent jump in yields led to a 1.533% spike in 10-year Treasury yield but was still lower than last week’s one-year high of 1.614%.
Following this, The Dow Jones Industrial Average fell 1.11% while the S&P 500 lost 1.34%. The Nasdaq Composite dropped 2.11%, down 9.7% from February's high.
Asian market check
Asian stocks followed U.S. peers lower. Japan’s Topix index slid 1%, South Korea’s Kospi index fell 1.6% and Australia’s S&P/ASX 200 declined 1.3%. S&P 500 futures were lower by 0.4%.
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