Closing Bell: Sensex, Nifty end flat amid high volatility; IT stocks outperform

Taking Stock: Market Fails To Sustain Early Gains, Ends Flat; IT Stocks Outperform

The broader indices outperformed the benchmarks with BSE Midcap and Smallcap indices ending in the green.... Read More

The market failed to show resilience to stay above the Nifty 50 Index level of 15,000. While it is subject to further price action evolution, the technical factors are aligned to support a lackluster market movement going forward. Any corrective wave down should find support around 14,750.

As such, the traders are advised to refrain from building a fresh buying position until we witness a correction till 14,750 levels. The volatility is observed to expand in today’s trading session indicating profit booking and distribution of stocks at a higher market level.

Markets traded subdued and ended almost unchanged, in continuation to the prevailing consolidation phase. The benchmark started with an uptick, tracking supportive global cues and inched further higher initially but profit-taking in the index majors trimmed all the gains as the session progressed. Consequently, the Nifty ended flat at 14,911 levels.

A mixed trend was witnessed across sectoral indices wherein banks, realty and metals were the top losers while IT and FMCG ended in the green. Amid all, the broader indices, midcap and smallcap, outperformed and ended higher by 0.4% and 0.3%.

The US markets are doing comparatively well despite caution ahead of the Fed meet and rising bond yields. At the same time, our markets are facing pressure and hovering in a range, after the subdued macroeconomic data and rising in the COVID cases. We feel the prevailing consolidation would end soon. Meanwhile, we suggest avoiding directional trades and preferring hedged positions.

Index opened a day with gains but not able to sustain on positive zone and closed day at 14,920 with mild loss & formed a bearish candle on the daily chart. On the higher side, 15,000-15,050 zone is strong hurdle, we have been witnessing selling pressures from mentioned levels, so for the fresh upside index need to sustain above 15,050 zone. Immediate support is coming near 14,800-14,750 zone and any break below said levels can increase selling pressure.

Indian market is impacted due to rising crude prices and selling by both FIIs & DIIs. We can expect FII selling to calm down post the Fed policy meet and ease in US bond yield, as an accommodative outlook is expected.

The domestic sentiment is suppressed by rising covid-19 cases increasing the risk of a second wave and fall in macro data like production & rise in inflation.

Indian rupee ended lower by 7 paise at 72.55, amid volatile trade saw in the domestic equity market.

It opened flat at 72.49 per dollar against previous close of 72.48 and traded in the range of 72.36-72-64.

Considering adjusted book value of Rs 135.64 per share on a post-issue basis, the company is going to list at a P/B of 2.25 times while its peers such as AU Small Finance Bank is trading at 8.44 times P/B. We recommend to “Subscribe” this IPO as the company has a diversified asset portfolio with a focus on retail operations and the company is offering its shares at a reasonable valuation compared to its peers.

Diversified asset portfolio with a focus on retail loan advances and retail granular liability franchisee which is healthy in the long run are the key competitive strengths.

Benchmark indices ended on flat note on March 16 amid high volatility after selling in the second half erases the early gains.

At close, the Sensex was down 31.12 points or 0.06% at 50,363.96, while Nifty was down 19 points or 0.13% at 14,910.50. About 1449 shares have advanced, 1463 shares declined, and 174 shares are unchanged.

Cipla, Tata Steel, ICICI Bank, BPCL and L&T were among major losers, while gainers included Asian Paints, Dr Reddy's Labs, HCL Technologies, HUL and TCS.

Among sectors Nifty Bank, PSU Bank and Metal indices shed 0.8-1 percent, while FMCG and IT index added 0.9-1.2 percent each. The BSE Midcap and Smallcap indices ended in the green.

Bharat Electronics board of directors at its meeting held on March 16, 2021, has declared second interim dividend of Rs 1.40 per equity share of Re 1 each fully paid-up (140%) for the financial year 2020-21.

Bharat Electronics was quoting at Rs 137.75, up Rs 0.60, or 0.44 percent on the BSE.

MTAR Technologies has received export orders worth USD 12.77 million (approximately Rs 93 crore) for export of manufactured goods, as per company release.

MTAR Technologies was quoting at Rs 1,008, down Rs 74.25, or 6.86 percent on the BSE.

Birlasoft announced its partnership with Riversand, a cloud-native Master Data Management (MDM) and Product Information Management (PIM) solution provider, companysaid in the release.

Birlasoft was quoting at Rs 252.55, up Rs 6.10, or 2.48 percent on the BSE.

Sarda Energy & Minerals share price touched 52-week high of Rs 416.35 on March 16 after received environment nod to raise the capacity.

The Chhattisgarh Environment Conservation Board, Raipur has granted to the company the “Consent to Operate” the enhanced capacity of its iron ore pellet plant from existing 6,00,000 MTs p.a. to 8,00,000 MTs p.a. with immediate effect, company said in the release.

At higher price band of Rs87, the company is demanding a TTM P/S valuation of 1.2x, which is at a significant premium tothe peer average of 0.4x (excluding Titan Company Ltd.). We assign an “AVOID”rating for the issue.