Third Day Of Gains
Indian equities ended higher for the third straight day, even as benchmark indices traded in a narrow range through the trading session.
The S&P BSE Sensex ended 0.5% higher at 51,279 while the NSE Nifty 50 index ended 0.5% higher at 15,174. Indian markets will be shut tomorrow on account of a holiday. As a result, today's session acted as the expiry for the weekly options contracts.
Among the sectoral indices, I.T., Pharma and Metals outperformed in today's session. The Nifty Metal index was the top sectoral gainer, ending 1.9% higher while the Nifty I.T. index gained 1.7%. The index for drugmakers also ended the session with gains of 1.5%.
Among the other gainers, the Nifty Auto index ended with gains of 0.9%. Other sectoral indices like the Nifty Bank and the Nifty Media index ended little changed.
The PSU Bank index was the only sectoral laggard in today's session, ending 0.2% lower.
Broader markets outperformed in today's trading session. The Nifty Midcap index ended with gains of 0.8% while the Nifty Smallcap index ended 1.4% higher.
The India Volatility Index fell 7.7% but managed to end above the mark of 20 at 20.75.
1,096 stocks on the NSE ended with gains while 807 stocks posted losses in today's session.
How Did The Sectoral Indices Fare
Quick Heal Technologies Approves Share Buyback
- Proposal to buyback up to 63.26 lakh equity shares or 9.85% of total paid-up equity share capital of the company.
- Total buyback amount will not exceed Rs 155 crore
- Buyback price of Rs 245 per share is at a premium of 33.8% to Tuesday's closing price
- Promoters held 72.8% stake in the company before the buyback.
- Shares gained as much as 17.3% to Rs 214.8, post the announcement.
Can IDBI Bank Exit The PCA Framework?
Persistent Systems At Record High
- Among top gainers on the Nifty Smallcap index
- Gains as much as 6.5% to Rs 1,819.5
- Biggest single-day gain in six months
- Up for the third straight day
- Today's volumes are more than triple its 20-da average
- Relative Strength Index (RSI) of the stock at 69
- Out of the 33 analysts tracking the stock, 20 have a buy recommendation; 8 sell calls
- The stock trades 8.6% higher than its 12-month Bloomberg consensus price target of Rs 1,648.4
Observations For Dr Reddy's New York Plant
- Audit of API manufacturing plant in New York completed by U.S. FDA.
- Plant issued form 483 with three observations.
- Observations will be addressed within stipulated time.
- No sales currently from this plant.
SIAM Data For February
- Total two-wheeler sales up 10.2% to 14,26,865 units Vs 12,94,787 units
- Scooter sales up 10.1% to 4,64,744 units Vs 4,22,168 units
- Motorcycle sales up 11.5% to 9,10,323 units Vs 8,16,679 units
- Supply chain challenge continue to be obstacles in smooth functioning of the industry
- Rising price of steel, unavailability of semi-conductors & higher container charges continue to impact the industry.
Benchmark Indices Hold On To Gains
- Nifty up 0.4% at 15,161
- Sensex up 0.5% at 51,262
- Nifty Bank up 0.2% at 35,937
- Nifty Midcap index up 0.6%
- Nifty Smallcap index up 1%
- India Volatility Index down 7% to 20.93
- Nifty I.T. index remains the top sectoral gainer; up 2%
- Nifty Pharma is the other sectoral gainer; up 1.1%
- Nifty Metal and PSU Bank index give up gains to trade little changed
- Eicher Motors remains the top Nifty gainer; up 2.9%
- SBI Life is the top Nifty laggard; down 2.5%
- 1,056 stocks on the NSE trade with gains while 815 are declining
IEX Enters Into Strategic Partnership With NSE & ONGC
- Divests 31% holding in Indian Gas Exchange
- NSE acquires 26% stake while ONGC acquires 5% stake in Indian Gas Exchange
- Collaboration to accelerate the development of the gas market
UBS On Indian Equities
Pharma Index Among Top Sectoral Gainers
Indian Stocks Likely To Underperform?
Rising commodity prices and stretched valuations are posing a risk to the rally in Indian stocks, making a case for equities to underperform local bonds over the next 12 months, according to UBS Global Research.
The Nifty 50 index is trading at 21.8 times its 12-month forward earnings, versus a five-year average multiple of 17.7 times, as investors pile into stocks on expectations that vaccine rollouts will drive a post-pandemic economic rebound and boost corporate profits.
Equity valuations relative to bonds are at levels seldom seen,” Sunil Tirumalai, Mumbai-based head of India strategy at UBS, said referring to the gap between the yield on India’s 10- year government notes and the earnings yield of the NSE Nifty 50 Index. “On most such occasions in history, we see equities underperform in the ensuing 12 months.”
From Bloomberg
Shapoorji Pallonji's Debt Restructuring
Import Tax On Solar Modules
India will levy a basic customs duty of 40% on solar modules and 25% on solar cells starting April 1, 2022, according to a notification on the renewable energy ministry's website.
The proposal has been approved by the finance minister, which will put out a customs notification later.
The ministry said that India plans to have 280 GW of solar capacity by 2030, which will require it to set up 25 GW of solar plants every year until that time.
The ministry also said that bidders in the subsequent solar auctions should factor in the new taxes in their bids.
From Bloomberg
Hitachi ABB Power Grids Wins Order
- Order worth Rs 160 crore to supply transformers to Indian Railways
- Will deliver traction transformers for WAG 9, one of India's most successful class of locomotives.
- For Central Organisation for Railway Electrification, it will supply trackside transformers.
Benchmark Indices Pare Most Of The Gains
- Nifty up 0.2% at 15,132
- Sensex up 0.2% at 51,154
- Nifty Bank up 50 points at 35,913
- Nifty Midcap index up 0.5%
- Nifty Smallcap index up 0.6%
- India Volatility Index down 4.6% to 21.46
- Nifty I.T. remains the top sectoral gainer; up 1.4%
- Nifty Pharma, Nifty Auto and Nifty Realty indices gain 0.8% each
- Most other sectoral indices give up gains to trade little changed
- Eicher Motors remains the top Nifty gainer; up 3%
- ONGC remains the top Nifty laggard; down 2.5%
- 1,056 stocks on the NSE trade with gains while 752 decline
Morgan Stanley Bets On HPCL
Most Stocks On The I.T. Index Gain
Coforge At Two-Month High
- Second best performer on the Nifty Midcap index
- Gains as much as 6.7% to Rs 2,757
- Up for the second straight day
- Biggest single-day gain in three months
- Today's volumes are more than eight times its 20-day average
- One-month implied volatility is 44%
- Relative Strength Index (RSI) of the stock at 60
- 14 out of the 23 analysts tracking the stock have a buy recommendation; four sell calls
- The stock crossed its 12-month Bloomberg consensus price target of Rs 2,724 in today's session
AU Small Finance Bank Launches QIP Issue
Max Healthcare Announces QIP Closure
- Board passed resolution approving the allotment of 6.14 crore equity shares.
- Issue price of Rs 195.4 per share.
- The company has raised Rs 1,200 crore through the QIP issue.
- SBI Focused Equity Fund, HDFC Trustee Company, BNP Paribas Arbitrage, Nomura Trust, Polar Capital Funds and Veritas Funds PLC are the investors who have been allotted over 5% shares in the QIP.
All Stocks On The Auto Index Gain
Benchmark Indices Hold Opening Gains
- Nifty up 0.5% at 15,178
- Sensex up 0.5% at 51,304
- Nifty Bank up 0.4% at 36,013
- Nifty Midcap index up 0.8%
- Nifty Smallcap index up 0.8%
- India Volatility Index down 4.2% at 21.56
- Nifty Auto and Nifty I.T. are the top sectoral gainers; up 1.3% each
- Nifty Media, Nifty Metal indices gain 0.8% each
- Nifty Pharma index up 0.5% while Realty index is up 1.1%
- Eicher Motors is the top Nifty gainer; up 3.3%
- SBI Life is the top Nifty laggard; down 1.5%
- 1,215 stocks on the NSE trade with gains while 530 are declining
Where Is The Smart Money Moving?
Third Day Of Gains
Indian equities opened higher for the third straight day. Today is the weekly options expiry session as this is a truncated week due to a holiday on Thursday.
The S&P BSE Sensex opened 0.7% higher at 51,404 while the NSE Nifty 50 index gained 0.7% at the start of trade to open at 15,202.
Most sectoral indices have opened with gains this morning, led by I.T. and state-run lenders. The Nifty I.T. index is up 1.1% while the PSU Bank index has gained 1% at the start of trade.
The Nifty Bank index is up 0.7% or 250 points while the Metal index, which was the top sectoral laggard on Tuesday has opened with gains of 0.9%.
The Nifty Auto and Nifty Media indices have opened 0.6% higher while the Pharma index is up 0.7%.
Broader markets have opened in-line with the benchmark indices. Both Nifty Midcap and Nifty Smallcap have gained 0.8% each at the start of trade.
1,262 stocks on the NSE have opened with gains while 335 stocks are trading lower.
Current Market Update
A Steady Start Likely
Good Morning!
Indian equities ended higher for the second straight day on Tuesday after rebounding from the day's low towards the final hour of trade. Gains were led by heavyweight financials, while PSU stocks underperformed.
Seven of the top 10 gainers on the Nifty 50 were financials. The top five laggards on the index were state-run companies.
Futures are indicating that the benchmark indices may open higher for the third straight day, ahead of a market holiday on Thursday. The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.4% to 15,227 as of 7:50 a.m. on Wednesday.
Most Asian markets are advancing this morning. Markets in China and Hong Kong advanced while those in Japan are fluctuating.
Futures on the Dow Jones are trading 30 points lower. The index ended little changed on Tuesday. A rebound in growth stocks sent the Nasdaq to its biggest single-day gain since November last year.
Treasury yields and the U.S. dollar held overnight losses.
West Texas Intermediate crude rose 0.3% to $64.19 per barrel ahead of the U.S. crude inventory data later today.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
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