Market Watch: Aditya Agarwala of Yes Securities
“I have a long on L&T. After good up move, the stock went into a sideways consolidation and more of a flag pattern. Now it is breaking above that bullish flag pattern. So, at current levels one can go ahead and buy the stock for targets of Rs 1,635 on the upside, keeping a stop loss of Rs 1,450 on the downside.”
“I have a short on Shriram Transport Finance. The stock is breaking down from the trend line support. So at current levels, one can go ahead and short the stock for targets of Rs 1,195 on the downside keeping stop loss at Rs 1,300 on the upside.”
GAIL and ONGC hit 52-week highs as Brent crude cracks $70 per barrel
Shares of ONGC and GAIL hit their respective 52-week highs on Monday, surging up to 7 percent after crude oil prices hit the highest level since January 2020. Brent crude prices jumped above $70 a barrel for the first time since the COVID-19 pandemic began, while US crude touched its highest in more than two years, following reports of attacks on Saudi Arabian oil facilities. The crude oil prices also jumped on optimism about the demand outlook as the global economy recovers. ONGC rallied as much as 6.4 percent to its 52-week high of Rs 122.30 per share on BSE while GAIL jumped 7.3 percent to hit its 52-week high of Rs 157.95 per share. Brent and WTI prices are up for the fourth consecutive session after OPEC and their allies decided to keep production cuts largely unchanged in April.
PSB privatisation: Govt working on amendments to banking companies & regulation act
The government is working on amendments to the banking companies act and banking regulation act for public sector bank (PSB) privatisation. The government is right now in the middle of studying what the consequences of these amendments are going to be. The aim is to do something and bring something in the budget session itself but this is a one-month session. There will be a whole process that is required and the government is already on it. Watch the video for more details
IT sector holds a lot of promise; RIL poised towards Rs 2300, says IIFL’s Anu Jain
The IT sector holds a lot of promise. However, TCS and Infosys are not in a positive signal zone but they have consolidated and the bias is positive, so will continue to perform, said Anu Jain, senior partner, head-equity brokerage at IIFL Wealth Management, on Monday. “I still see a lot of promise coming into IT which is looking like it’s consolidated since last quarter to this quarter. It seems like this whole quarter post the results were a consolidation period and both TCS and Infosys are not in a positive signal zone but they have consolidated and the bias is positive, so that will continue to perform,” Jain told CNBC-TV18. “Reliance, we have seen the performance over the last two weeks; in fact, it has been one of the major supporters to the Nifty, not breaking down and it is looking poised towards Rs 2,250-2,300 which is 4-5 percent bias,” said Jain. Watch the video for more
IRCTC stock price surges over 10% in March so far; Here’s why
Indian Railway Catering and Tourism Corporation (IRCTC) stock price has rallied over 10 percent in the month of March so far on the back of numerous reasons. The shares have gained more than 22 percent in the last one month. Restarting of some trains as well as recovery hope from the COVID-19 vaccination drive in India has improved the sentiment for the stock. Moreover, the travel and tourism sector has come back in focus after the launch of the initial public offering (IPO) of Easy Trip Planners. In its analyst meet last week, IRCTC announced starting pf two luxury trains, Golden Chariots trains – Pride of Karnataka and Jewel of South from March 21. The company said that it has a plan to start around 150 odd trains. For more details, watch the video.
MFs withdraw Rs 16,306 cr from equities in February on profit booking
Mutual funds pulled out Rs 16,306 crore from equities in February, making it the ninth consecutive monthly outflow as small investors booked profit amid a rally in stock markets. Overall, mutual funds withdrew a net amount of over Rs 56,400 crore in 2020, data available with Securities and Exchange Board of India (Sebi) showed. “Whenever the markets surge after a big fall, investors pull out. Investors — who had seen losses in the last two years before COVID — had seen profits in the last few months and have booked their profits, resulting in the mutual funds to pull out from equities,” Divam Sharma, co-founder of Green Portfolio, said. According to the data, MFs have been continuously withdrawing money from equities since June 2020 and pulled out over Rs 1.24 lakh crore till February.
Amid rising bond yields, FPIs pull out Rs 5,156 cr in March so far
Reversing the two-month buying streak, foreign portfolio investors (FPIs) pulled out Rs 5,156 crore from Indian markets in the first week of March amid profit booking and rising bond yields in the US. According to FPI statistics available with depositories, overseas investors pulled out a net Rs 881 crore from equities and Rs 4,275 crore from the debt segment between March 1-5, taking the total net withdrawals to Rs 5,156 crore. Prior to this, FPIs invested Rs 23,663 crore in February and Rs 14,649 crore in January.
Benchmark indices, led by strength in midcaps & financials, continue uptick in the opening hour of trade
— CNBC-TV18 (@CNBCTV18Live) March 8, 2021
Bullish on India; look for opportunities in largecaps, says Ariel Investments’ Rupal Bhansali
Bullish on India but would caution people that valuations all over the world including India are toppish, said Rupal Bhansali, chief investment officer for international and global equities at Ariel Investments, on Monday. “Emerging markets (EMs) lagged a lot last year and they have been lagging for almost a decade and certain markets, India being one of them but Brazil is another market; both look interesting and intriguing from a medium-term perspective,” she said. Bhansali further advised investors not to look for opportunities in small and midcaps but in largecap companies and said that the financial sector in India offers far better opportunity. “We still prefer good old names like HDFC, they have steadier growth prospects. Yes, they trade at a premium but because of longevity of their growth it still offers good value,” Bhansali added. More here
Adani Ports shares hit 52-week high on Rs 800 crore investment by Windy Lakeside
Shares of Adani Ports & Special Economic Zone Ltd (APSEZ) rallied over 2 percent to hit a 52-week high of Rs 768.40 apiece in early trade on Monday after the company announced that Windy Lakeside Investment Ltd, an affiliate of private equity firm Warburg Pincus, will invest Rs 800 crore in the company for a 0.49 percent stake. In a regulatory filing, APSEZ said that its Board of Directors took the decision to issue up to 10 million equity shares to Windy Lakeside Investment Ltd (Windy) at a price of Rs 800 each (at a premium of Rs 798 per Equity Share), for an aggregate consideration of up to Rs 800 crore. Earlier, APSEZ had said it was acquiring Windy Lakeside Investment’s 31.5 percent stake in Gangavaram Port Ltd (GPL) for Rs 1,954 crore. The company also looks to acquire another 58.1 percent share in GPL.
BEML shares rally 15% to hit 52-week high on reports of Tata Motors, M&M, Ashok Leyland eyeing stake
Shares of BEML surged over 15 percent on Monday to hit 52-week high on media reports that at least 6 companies are looking to buy a stake in the defence equipment maker. Companies including Tata Motors, Mahindra and Mahindra and Ashok Leyland, are looking to buy a 26 percent stake in the state-run company, the media house Mint reported. It added that Bharat Forge Ltd and Megha Engineering and Infrastructure Ltd may also submit expressions of interest for the government’s stake in BEML. The report further noted that these companies are looking to seek control of BEML as part of their strategy to grow their defence manufacturing businesses and cut dependence on the core commercial vehicle business, which is cyclical in nature.
Morning market quote from Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
“Three factors weigh on market sentiments presently: US bond yields, dollar index and crude. All the three firmed up last Friday impacting sentiments. The combined FII, DII cash market selling ( above Rs 3000 cr on last Friday) reflected the market’s concern. Brent crude rising beyond $71 is a macro concern for India. But rising US bond yield and dollar index , though a concern, need not be a market impacting move provided growth recovery keeps up pace. The latest job data from the US indicates that the US economy is bouncing back. In India, too, the growth and earnings data are set to improve. These positive trends can sustain market buoyancy provided the bond yield doesn’t spike sharply”
Opening Bell: Sensex opens 300 points higher, Nifty nears 15,000; all sectors in the green
Indian indices started the week on a positive note, tracking gains from Asian peers as the US Senate passed the $1.9 trillion stimulus bill. Domestically, all sectors withnessed broad-based buying led by metal and banking indices. At 9:18 am, the Sensex was up 294 points at 50,699 while the Nifty rose 54 points to 14,992. Broader markets were also positive in early deals with the midcap and smallcap indices up over a percent each. On the Nifty50 index, ONGC, Adani Ports, UPL, SBI and JSW Steel were the top gainers while Bajaj Auto, Asian Paints, Nestle, Dr Reddy’s and Bharti Airtel led the losses.
MATR IPO: Massive response from investors rages grey market premium
The initial public offering (IPO) of MTAR Technologies has got a massive response from investors, with the issue being subscribed more than 200 times since Wednesday (March 3). The Rs 597 crore IPO has received bids for Rs 145.79 crore equity shares, following which the grey market premium on MTAR Technologies shares have further gone up, say market observers. MTAR Technologies is a precision engineering solutions company that works with the likes of the Indian Space Research Organisation (ISRO). On March 5, Grey-market tracker Abhay Doshi had tweeted: “MTAR Tech is in different zone! Solid response from HNI, QIB and ofcourse Retail as always. A blockbuster listing candidate. (sic)” According to a report in LiveMint, Doshi, founder of UnlistedArena.com, which deals in pre-IPO and unlisted shares, said the oversubscription added fuel to the premium, which was already hot. He said that for a couple of days, the premium hovered around the Rs 440-450 range. It jumped to the Rs 540-545 range after the oversubscription. More here
Brent cracks $70 for first time since pandemic began after Saudi facilities attacked
Brent crude futures jumped above USD 70 a barrel on Monday for the first time since the COVID-19 pandemic began, while US crude touched its highest in more than two years, following reports of attacks on Saudi Arabian oil facilities. Brent crude futures for May reached USD 71.16 a barrel in early Asian trade and were at USD 70.76 a barrel by 0036 GMT, up USD 1.40, or 2 percent. US West Texas Intermediate (WTI) crude for April rose USD 1.32, or 2 percent, to USD 67.41. The front-month WTI price touched USD 67.86 a barrel earlier, the highest since October 2018. Yemen’s Houthi forces fired drones and missiles at the heart of Saudi Arabia’s oil industry on Sunday, including a Saudi Aramco facility at Ras Tanura vital to petroleum exports, in what Riyadh called a failed assault on global energy security. More here
Julius Baer upgrades India, fastest growing major economy
Singapore-based fund house, Bank Julius Baer, has upgraded India to overweight as it will be the fastest growing major economy in 2021. “We change our stance on India from market-weight to overweight and see 15 percent upside from current levels with a Sensex price target of 58,450,” it said in a note. “An economic recovery is underway, and we look for 9 percent y/y GDP growth this year, followed by 7 percent next year. We look for earnings per share to grow on average over 25 percent over the next 3 years. It would be unprecedented for the stock market to fall in an environment of such strong growth,” it added. More here
Shares, dollar cheer US stimulus, bonds downcast
Asian shares rallied on Monday while the dollar held near three-month peaks after the US Senate passage of a USD 1.9 trillion stimulus bill augured well for a global economic rebound, though it also put fresh pressure on Treasuries. There was also upbeat news in Asia, as China’s exports surged 155 percent in February compared with a year earlier when much of the economy shut down to fight the coronavirus. BofA analyst Athanasios Vamvakidis argued the potent mix of US stimulus, faster reopening and greater consumer firepower was a clear positive for the dollar. The prospect of yet faster growth helped MSCI’s broadest index of Asia-Pacific shares outside Japan firm 0.5 percent. Japan’s Nikkei gained 0.9 percent, and Chinese blue chips 0.7 percent. S&P 500 futures rose 0.3 percent, after a sharp turnaround on Friday. EUROSTOXX 50 futures caught up with Wall Street by rising 1.2 percent and FTSE futures 1.3 percent.
First up, here is quick catchup of what happened in the markets on Friday
Equities fell for a second straight session on Friday as investors remained spooked by a sharp rise in US yields. Frontline indices closed 1-2 percent lower and even the broader market indices finished the day in the red. The Sensex managed to hold 50,000 and closed 0.87 percent or 441 points lower. Nifty gave up 15,000 as it lost nearly 1 percent or 142 points. Broader market indices traded in red as well, with mid-caps and small-caps shedding nearly 2 percent. Total 38 Nifty stocks closed in red, with IndusInd Bank, Wipro, Tata Motors among the top losers, while ONFC, Gail, Hero MotoCorp, Maruti, and Kotak Mahindra Bank were the top gainers. All the sectoral indices on Nifty50 were trading in red, and financials and metals emerged as the top losers. Both Nifty Metal and PSU Bank fell three-four percent. The volatility index rose nearly 6 percent today.
Welcome to CNBC-TV18’s Market Live Blog
Good morning, readers! I am Pranati Deva from the market’s desk of CNBC-TV18. Welcome to our market blog, where we provide rolling live news coverage of the latest events in the stock market, business and economy. We will also get you instant reactions and guests from our stellar lineup of TV guests and in-house editors, researchers, and reporters. If you are an investor, here is wishing you a great trading day. Good luck!