Sensex ends 117 pts up, logs best weekly gain in 10 months; SBI jumps 11%

The broader markets, however, came under selling pressure. The S&P BSE MidCap and SmallCap indices ended 0.93 per cent and 0.28 per cent lower, respectively

4:47 PM

MARKET CLOSING COMMENT :: Ajit Mishra, VP - Research, Religare Broking

Markets ended marginally higher in a volatile trading session, taking a breather after the recent surge. The benchmark indices started on a positive note, tracking supportive global cues however profit taking at higher levels capped upside. The MPC’s monetary policy review outcome was largely in line with the expectations thus failed to trigger any major reaction. On the sectoral indices, a mixed trend was witnessed wherein PSU banks, pharma and metal gained noticeable traction while auto and IT traded subdued. Amid all, the Nifty ended with gains of 0.2% at 14,924 levels.

 

Nifty tested another milestone of the “15,000” mark today. As the major events are behind us i.e. the Union budget and monetary policy meet, the focus will shift back to fundamentals as well as global cues. We might see some consolidation in the index early next week so there’ll be no shortage of trading opportunities on the stock-specific front. Traders should align their positions accordingly and avoid contrarian trades.

 

4:25 PM

MARKET CLOSING COMMENT :: Nirali Shah, Head of Equity Research, Samco Securities

Markets witnessed a remarkable week with domestic indices witnessing the highest Budget Day gains in absolute terms, atleast in the past 10 years. The week was power packed with a no tax hike Budget which was followed by forward looking policies by the RBI. While overall markets heartily welcomed the reforms, there was a star performer amidst the crowd, BankNifty which saw a one-sided upmove since the pandemic. Given that now the major positives have already been factored in, without a doubt this over-optimism in markets might fizzle out and take a breather going ahead. But the fact remains that this budget precisely aimed at revitalizing demand at the ground level even if it meant letting go of the sovereign weight of fiscal deficit. A bold move indeed by the Government which shows their ambition to strengthen free markets in order to create wealth by privatization and asset monetization. In addition to this, a capex intensive and infra-led boom is anticipated to provide the much needed resilience to our economy which was side-tracked under the influence of the pandemic. Keeping this as an essence, the government manoeuvred to put money back in the hands of people through real asset creation rather than simply doling out free monies to the citizens, as done by the developed countries to support their slowing economies. Overall, the Budget truly satisfied the majority with its growth projected vision and expenditure plans. Market participants should be watchful of quality names from the cement, heavy industrials, insurance and PSU sectors for the long term as they are major beneficiaries from the standpoint of visionary reforms.

 

Technical Outlook

 

Nifty50, which formed a big bearish candle last week, has made an even bigger green candle in the week gone by as bulls are in no mood to give the bears control of the market trend. The overall market breadth remained positive as risk-seeking sentiment prevailed after the budget day. Other global equity indices including emerging markets like Kospi, TAIEX and DAX are all trading near all-time highs while the risk-averse asset classes like Gold and bonds are exhibiting weakness. We suggest traders maintain a bullish bias with an immediate support on the downside at 14580.

4:09 PM

IPO Update :: Brookfield REIT issue subscribed 6.5x till 4:00 PM on last day of the issue

4:06 PM

Market stats :: Market breadth marginally tilts towards declines

4:05 PM

Index contributors :: Banks, FMCG stocks support Sensex

4:02 PM

Broader marker check :: S&P BSE MidCap ends 1% lower

4:01 PM

RECORD CLOSING :: Nifty Bank index clocks fresh closing high

3:59 PM

SECTOR WATCH :: SBI lifts PSU bank index

3:58 PM

SECTOR WATCH :: Auto stocks dip in a strong market

3:56 PM

NEW LISTING :: Stove Kraft ends 14% higher against issue price of Rs 385

3:54 PM

STOCK OF THE DAY :: Zee Entertainment plunges 14% on margin concerns

3:52 PM

Result impact :: M&M ends in the red

3:46 PM

STOCK OF THE DAY :: SBI posts best weekly gain in 30 years on robust Q3 show

3:41 PM

Sectoral trends on NSE :: Media, auto indices end lower in a strong market

3:40 PM

Sensex Heatmap :: Select financial, IT stocks cap gains

3:35 PM

CLOSING BELL

In the early deals, the benchmark S&P BSE Sensex surpassed the 51,000-mark on the BSE for the first time and hit a fresh record high of 51,073. The index, however, erased gains partially and ended 117 points, or 0.23 per cent, higher at 50,732 levels. 

 

On the other hand, Nifty50 index surpassed the psychological 15,000-mark and hit a record high of 15,015 levels. At close, the index was at 14,924 levels, up 29 points or 0.19 per cent.

3:28 PM

MSTC hits new high on the back of heavy volumes; zooms 92% thus far in 2021

Thus far in the calendar year 2021, the stock has zoomed 92 per cent, as compared to a 6 per cent rise in the S&P BSE Sensex. At 02:55 pm, it was trading 13 per cent higher at Rs 300, as against a 0.35 per cent gain in the benchmark index. Trading volumes on the counter more-than-doubled with a combined 3.3 million equity shares, representing 4.7 per cent of total equity of MSTC, having changed hands on the NSE and BSE till the time of writing of this report. READ MORE

3:17 PM

EXPERT TAKE | RBI Monetary Policy: Rate sensitive sectors may have been disappointed

Inflation numbers in the last two months have turned out to be better than what was expected at the time of the December meeting which resulted in RBI revising its inflation projections downwards given the high base effect. CPI inflation has been revised from 5.8 per cent to 5.2 per cent for Q4:2020-21, 5.2 per cent to 5.0 per cent in H1:2021-22 and 4.3 per cent for Q3:2021-22, with risks broadly balanced. Also, key outcome to be monitored on the inflation front would be the inflation target for the next five years that Government will be reviewing by March 2021. We believe that excess liquidity and budgetary spends (although more in capital nature) would find its way in rising core inflation given the fact that we have seen recovery in consumption. READ MORE

Deepak Jasani - HDFC Securities

3:05 PM

Dec Quarter Result :: Jubilant Life Sciences reports growth in earnings

>> Net profit at Rs 310 cr vs Rs 203 cr YoY

>> Revenue at Rs 1,771 cr vs Rs 1,518 cr YoY

2:58 PM

PSP Projects soars 12% on additional work order worth Rs 236 crore

Shares of PSP Projects advanced 12 per cent to Rs 499 in intra-day trade on the BSE on Friday after the company said it has received an additional work order worth Rs 236 crore (including GST) for an institutional project at Gujarat.

 

“Further, the company has been ranked the L1 bidder (Lowest Bidder) by a regulatory authority for projects totalling to Rs 420.89 crore (including GST) for construction of medical colleges at multiple locations at Uttar Pradesh,” PSP Projects, on Thursday, said in exchange filing. READ MORE

2:48 PM

EXPERT TAKE :: RBI's monetary and Centre's fiscal policy are moving hand-in-glove

RBI has done exceptionally well in managing government's extended borrowing this year when fiscal deficit has shot-up to 9.5 per cent of GDP. In fact, the glide path given by the Centre shows that fiscal deficit will now be at 4.5 per cent of GDP in FY26. Hence, the focus has to be to have orderly financial markets and financial stability. READ MORE

2:40 PM

RBI to allow retail investors to directly enter govt securities market

In a major move aimed at encouraging small investors to become direct investors in government bonds or stated simply to an infinite source of lending to the government, the Reserve Bank on Friday said it will allow them to directly buy government debt, making India the first Asian country to do so and among a handful globally. The central bank, tasked with managing a whopping Rs 12 lakh crore in government borrowing target next fiscal, hopes the move will allow greater depth to the gilt market in particular and the overall debt market in general thus deepening the financial markets as lack of depth has been the biggest bane of the domestic debt market all this while. READ MORE

2:35 PM

RBI Policy Reaction :: Naveen Kulkarni, Chief Investment Officer, Axis Securities

The Feb ’21 RBI monetary policy was in-line with street expectations of maintaining status quo on rates and continuation of an accommodative stance. Inflation target outlook for Q4 is largely in control, indicating unlikely hardening of interest rates in near-term. FY22 GDP growth is estimated at 10.5% on improved growth outlook. Normalisation of CRR in a phased manner will help in gradual rationalization of liquidity in the system. Since it was the first monetary policy post the Union Budget, expectations were also on some specific guided plans on Government’s Rs 12 lac crore market borrowing programme, which didn’t come by. Inclusion of NBFCs for On-Tap TLTRO will ease liquidity pains, especially for lower rated NBFCs. Continuing to focus on regulatory reforms for shadow banks, this time for Microfinance NBFCs, will strengthen the country's financial framework in the long run. Structural reforms by way of giving access to retail investors to primary, secondary government bond markets are also a welcome move. On a broader note, RBI continues to focus on maintaining liquidity for growth and supporting revival with softer interest rates, to keep the demand in the economy buoyant

2:27 PM

RBI Policy Reaction :: Dhiraj Relli, MD &CEO, HDFC Securities

As expected, the MPC voted unanimously to leave the policy repo rate unchanged at 4% and assured continuation of accommodative stance well into FY22. This will complement the measures taken by the Govt in the recent budget to revive growth momentum in the economy. Despite the expansionary Budget, support from RBI is needed at this juncture to strike the right balance in ensuring enough liquidity in the system. Thankfully the RBI Governor time and again in his speech assured comfortable liquidity in the banking system going ahead. Overall the policy outcome was largely on expected lines and did not provide any large surprises on either side.

2:15 PM

BSE Telecom worst sectoral performer, down over 2%

2:09 PM

Zee Entertainment plunges 15% on profit booking on margin concerns

Shares of Zee Entertainment Enterprises (ZEE) dipped 15 per cent to Rs 212 on the BSE in the intra-day trade on Friday on profit booking as investors worried about shrinking operating profit margin. The stock has slipped 19 per cent from its 52-week high level of Rs 216 touched on Thursday, February 4. READ MORE

1:50 PM

Mahindra & Mahindra Q3 net profit up 42% at Rs 1,268 cr; revenue grows 11%

Mahindra & Mahindra, on Friday, reported consolidated net profit of Rs 1,268 crore for the December quarter of 2020-21 (Q3FY21). The company said it has incurred a one-time loss of Rs 1,214 crore, which impacted the bottom-line. For comparison, the company had reported profit of Rs 891.5 crore in the year-ago quarter. The company's revenue also grew 11 per cent on a year-on-year (YoY) basis to Rs 21,625.95 crore from Rs 19,430 crore, reported in the corresponding quarter last year. READ MORE

1:38 PM

Dec Quarter Result :: Cadila Health's net profit grows 41% YoY to Rs 527.2 crore

>> Revenue comes in at Rs 3,795.6 crore, up 4.3% YoY

>> Ebitda at Rs 807 crore, up 15.6% YoY

>> Ebitda margin at 21.26%, up 208bps

1:26 PM

IPO Update :: Brookfield REIT issue sails through on Day 3

- Issue subscribed 2.06 times so far
- Total bids received for 15,73,31,400 shares so far vs issue size of 7,62,78,200 shares

 

 

1:12 PM

Dec Quarter Result :: M&M + MVML

>> Profit at Rs 1,745 crore

>> One-time loss at Rs 1,214 crore

>> Revenue at Rs 14,057 crore

>> Ebitda margin at 17%