Second Day Of Losses
Indian equities ended lower for the second straight day but off the day's low. Losses were led by state-run lenders and metal stocks.
The S&P BSE Sensex ended 0.9% lower at 50,045 while the NSE Nifty 50 index ended 1% lower at 14,938. Despite today's losses, both Sensex and Nifty ended with gains for the week after two successive weeks of losses.
Losses today were led by the PSU Bank index, which fell 4% while the Nifty Metal index declined 2.7% in today's session. The Nifty Bank index ended 600 points or 1.6% lower as did the Nifty I.T. index which declined a similar quantum.
Other sectoral laggards were the Nifty Pharma index which fell 1.3% while the Media index gave up gains and ended 0.9% lower while the Nifty Auto index declined 1%.
Broader markets ended lower and also underperformed the benchmark indices. The Nifty Midcap index index fell 2.1% while the Smallcap index declined 1.5% by the end of the session.
The India Volatility Index rose for the second day, climbing 5.8% to end at 25.56.
1,357 stocks on the NSE ended with losses while 556 stocks bucked the trend to post gains.
How Did The Markets Fare This Week
Sun Pharma's New Acquisition
- To acquire 4.28 lakh shares or 12.5% fully diluted equity stake of WRS Bioproducts, Australia
- WRS develops novel technologies to produce and commercialise supplements and nutraceutical ingredients from diverse algae species in Austrlia.
- The cost of the acquisition will be 2 million Australian Dollars.
- The acquisition is likely to be completed on or before March 15, 2021.
Underwriters Rescue Fourth Successive Bond Sale
Primary dealers had to step in for the fourth straight time to rescue a government bond sale. Dealers purchased bonds worth Rs 10,900 crore out of the Rs 12,000 crore 5.85% 2030 bond.
In all, the government sold debt worth Rs 33,000 crore as compared to the original plan of Rs 31,000 crore. This is the sixth auction rescued by primary dealers this year - the most since 2013.
In a Bloomberg survey of five traders, the cutoff yield for the 2030 bond was at 6.2225% as compared to an estimate of 6.23%.
Two Wheeler Retail Sales Decline
PSU Bank Index Extends Losses
Benchmark Indices Set To Decline For Second Day
- Nifty down 1.1% at 14,918
- Sensex down 1% at 50,341
- Nifty Bank down 2% at 35,060
- Nifty Midcap index down 2%
- Nifty Smallcap index down 1.5%
- India Volatility Index up 7.7% to 26.03
- PSU Bank index extends losses as the top sectoral laggard; down 4.2%
- Nifty Metal is the other major sectoral laggard; down 2.9%
- Nifty Realty index down 1.5% while Pharma and I.T. indices decline over 1% each
- GAIL remains the top Nifty gainer; up 2.2%
- IndusInd Bank remains the top Nifty laggard; down 5.6%
- 39 out of the 50 index constituents trade with losses
- 1,291 stocks on the NSE decline while 567 are trading with gains
Monetary Policy Easing Not Very Impactful?
Update On BEML's Divestment Process
- Government appoints Deloitte Haskins & Sells as consultant
- Delloitte to advise, undertake and implement the demerger of the company's non-core assets
- Move as part of the company's divestment process
Morgan Stanley On Midcap I.T. Stocks
Bucking The Trend: V-Guard Industries
- Top gainer on the Nifty Midcap index
- Gains as much as 4.8% to Rs 228.7
- Snaps two-day losing streak
- Today's volumes are 21% higher than its 20-day average
- One-month implied volatility is 69%
- Relative Strength Index (RSI) of the stock at 51.4
- 10 out of the 20 analysts tracking the stock have a buy recommendation; five sell calls
- Return potential as per Bloomberg consensus data is 12%
Metal Index Is Among The Top Laggards
Coal India Declares Dividend
- Approves payment of second interim dividend of Rs 5 per share for FY21
- March 16 fixed as the record date for the company
- Date of payment of interim dividend: On and From March 24, 2021
Benchmark Indices Continue To Fluctuate
- Nifty down 0.5% at 15,000
- Sensex down 0.4% at 50,633
- Nifty Bank down 1.4% at 35,309
- Nifty Midcap index down 1.4%
- Nifty Smallcap index down 0.7%
- India Volatility Index up 7% to 25.84
- PSU Bank index remains the top sectoral gainer; up 3.2%
- Nifty Metal index is the other sectoral laggard; down 2.2%
- Nifty Realty, Nifty Pharma and Nifty I.T. indices decline 0.6% each
- GAIL is the top Nifty gainer; up 2.2%
- IndusInd Bank remains the top Nifty laggard; down 5.1%
- 1,163 stocks on the NSE decline while 660 trade with gains
Kotak Mahindra Bank Signs MoU With Indian Army
All Stocks On The Nifty Bank Index Decline
Which Sectors Did FPIs Park Their Funds In February
Impact Of Rising Bond Yields
Benchmark Indices Pare Losses
- Nifty down 24 points at 15,059
- Sensex down 80 points at 50,765
- Nifty Bank down 1% at 35,455
- Nifty Midcap index down 0.3%
- Nifty Smallcap index up 0.5%
- India Volatility Index up 6.1% to 25.62
- Nifty Media is the top sectoral gainer; up 1%
- PSU Bank index is the top sectoral laggard; down 1.5%
- Nifty Metal and Nifty Pharma indices down 0.7% each
- ONGC is the top Nifty gainer; up 4.1%
- IndusInd Bank is the top Nifty laggard; down 2.5%
- 1,002 stocks on the NSE trade with gains while 736 are declining
Bold But Expensive? Analysts On Wipro's Latest Acquisition
Start Better Than Expectations
Indian equities opened lower for the second straight day but the losses were modest as compared to thoe indicated by futures earlier this morning.
The S&P BSE Sensex opened 0.65% lower at 50,517 while the NSE Nifty 50 index fell 0.7% at the start of trade to open at 14,977. As of closing on Thursday, both Sensex and Nifty were up 3.5% for the week.
Most sectoral indices have opened with loses. The Nifty Bank index opened 1% or 350 points lower while the Metal index was down 0.7% at the start of trade.
Nifty FMCG and Nifty I.T. indices opened 0.5% lower while the Auto index was down 0.6%.
Broader markets have opened little changed this morning. The Nifty Midcap index was down 0.2% while the Small cap index was up 0.1% in the early minutes of trading.
Current Market Update
Weekly Gains Likely
Good Morning!
Indian equities snapped a three-day winning streak on Thursday on account of expiry related volatility and weak global cues.
Selling pressure was seen across the board, barring the media index. India Volatility Index, too, jumped after three days.
So far this week, the Sensex and Nifty have gained more than 3.5%. But futures are pointing to another gap-down opening to Friday's session. The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 1.2% to 14,890 as of 8:15 a.m.
Asian equities have followed their peers on Wall Street lower this morning. Markets across the Asia-Pacific, ranging from Japan to China and South Korea are trading with losses. The U.S. dollar strengthened, while treasuries declined.
Markets had a bout of selling overnight after Fed Chair Jerome Powell fell short of speaking about intervening against the rising bond yields.
Futures on the Dow Jones are down 160 points. The index fell 1.1% overnight.
Oil prices too are trading higher after OPEC+ surprised traders by keeping output levels unchanged, contrary to opinions of increasing supply to the tight market. West Texas Intermediate crude rose 0.3% to $64 per barrel.
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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