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
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Stock market updates: Stellar December quarter results by State Bank of India (SBI) and a status-quo in policy rates by the Reserve Bank of India (RBI) kept markets afloat on Friday even as mild profit-booking amid heightened volatility trimmed gains at higher levels.
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.
SBI (up 11.3 per cent) was the top gainer on the index as analysts raised their targets on the stock post better-than-expected December quarter results. Global brokerage CLSA, for instance, has set a target price of Rs 560 on the lender's stock. READ MORE
Kotak Mahindra Bank, UltraTech Cement, Dr Reddy's Labs, ITC, HUL, and HDFC Bank, all up between 1 per cent and 4 per cent, were the other top gainers on the index. On the downside, Axis Bank (down 3 per cent), Bharti Airtel, ICICI Bank, Maruti Suzuki, TCS, and HCL Tech were the top laggards on the index.
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.
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.
On the sectoral front, the Nifty Auto an the IT indices ended 1 per cent lower each, while the Nifty PSU Bank index advanced 4 per cent on the NSE.
RBI monetary policy
Earlier today, the RBI kept the repo rate unchanged at 4 per cent and maintained the policy stance as 'accomodative' in its bi-monthly monetary policy meeting. Besides, it projected the GDP growth of 10.5 per cent in FY22 for India while projection for CPI-based inflation was revised to 5.2 per cent for Q4FY21. RBI governor Shaktikanta Das also announced normalisaton of CRR which, he said, would open up space for a variety of market operations to inject additional liquidity. Furthermore, absence of any concrete measures as expected by a set of bond traders weighed on the yields with 10-yr Gsec yields jumping 8bps from 6.07 per cent to 6.15 per cent.
In another development, Das announced direct online participation by retail investors in Government securities in both primary and secondary market is a big initiative which will broaden the investor base. READ ABOUT IT HERE
Global cues
Global shares approached record highs on Friday and the dollar headed for its best weekly gain in three months, as progress in vaccine distribution and US stimulus hopes prompted bets on further normalisation in the global economy.
The STOXX index of Europe;s 600 largest stocks was up 0.2 per cent, while MSCI's gauge of Asian shares outside Japan rose 0.4 per cent. Japan's Nikkei also rallied 1.5 per cent.
(With inputs from Reuters)
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
Topics : Reserve Bank of India MARKET WRAP Markets RBI Policy sbi Shaktikanta Das Hero MotoCorp Q3 results Markets Sensex Nifty S&P BSE Sensex Nifty50 BSE NSE SGX Nifty Wall Street Dalal Street
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First Published: Feb 05 2021 | 7:54 AM IST