Closing update: Indian equities witnessed a sharp selloff in the intraday trade on February 26 which dragged the benchmark Sensex lower by more than 2,148 points and made the Nifty go below 14,500. Banking and financial stocks led the fall as the Nifty Bank, Private Bank, PSU Bank and Financial Services indices all fell up to 5 percent.
At close, Sensex was 1,939 points, or 3.80 percent, down at 49,099.99 while Nifty was at 14,529.15, down 568 points or 3.76 percent.
Mid and small-caps were outperforming their larger peers as the BSE Midcap and Smallcap indices were down by 1.75 percent and 0.74 percent, respectively.
February 26, 2021 / 03:27 PM IST
All components of Sensex trades in the red:
February 26, 2021 / 03:21 PM IST
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed a strong downward trend and a decisive breakdown below the support level of 14750.
While a recovery above 14,850 is the key to change the short-term bearish outlook, sustaining below this level, the market will gain downside momentum and open the gate for a movement until 14,540.
The momentum indicators like RSI, MACD may turn negative and market breadth may deteriorate significantly, further strengthening the view of a short-term bearish outlook.
February 26, 2021 / 02:52 PM IST
Sharekhan on Gland Pharma: We have a buy recommendation with a price target of Rs 3,040. It is an established player in Injectables space and is well-placed to harness the growth opportunities in this space. It has a strong compliance record with nil observations from the USFDA across all its plants. Gland has a unique B2B business model, which enables it grow its market share while maintaining cost leadership. Strong domain expertise, robust growth prospects, sturdy & consistent earnings track record, and healthy return ratios make Gland an ideal long-term investment pick.
February 26, 2021 / 02:42 PM IST
Abhishek Bansal, Founder Chairman, Abans Group: Gold prices have continued their slide from yesterday and currently trading near USD 1,757. Rising global bond yields are pushing non-yielding gold prices lower. The 10-year T-note yield surged to a 1-year high Thursday of 1.609 percent. Also, the 10-year UK gilt yield rose to an 11-month high Wednesday of 0.829 percent, and the 10-year German bund yield climbed to an 11-month high of -0.216 percent.
Gold prices are likely to trade negatively while below key resistance level around 20 days EMA at USD 1,804 and 50-day EMA at USD 1,831 while immediate support level could be seen around USD 1,740-1,716.
February 26, 2021 / 02:36 PM IST
Market update: Sensex is down 1,531.08 points or 3 percent at 49508.23, and the Nifty fell 443.10 points or 2.93 percent at 14654.30.
February 26, 2021 / 02:27 PM IST
Hemang Jani, Head of Equity Strategy, Broking & Distribution, Motilal Oswal: Equity markets opened gap down following spike in global bond yields and extended its weakness further as the session progressed. Panic in global bond markets led to sharp rise in yields which spooked investors amid fears of interest rate cycle reversal. The fall in the broader market is less severe with Nifty Midcap100 and Nifty Smallcap100 down ~2 percent. Investors have thus turned to pharma stocks amidst this market crash. This sector has been in consolidation mode so far 2021 YTD as it witnessed profit booking post sharp rally in CY20. It has also got boost from second PLI scheme being approved for the sector. The market correction might continue for some time till inflation fears ease down.
February 26, 2021 / 02:13 PM IST
IIFL Finance to open public issue of bonds next week to raise Rs 1,000 crore: IIFL Finance on Friday said it will launch a public issue of bonds next week to raise up to Rs 1,000 crore to augment its capital base. Backed by Fairfax and CDC Group, IIFL Finance will issue unsecured redeemable non-convertible debentures (NCDs), with a base issue size of Rs 100 crore and a green-shoe option to retain oversubscription of up to Rs 900 crore, aggregating to Rs 1,000 crore, the company said in a release. The public issue of bonds will open on March 3, 2021 for the purpose of business growth and capital augmentation.
February 26, 2021 / 02:02 PM IST
European markets are trading in the red with CAC and DAX down over a percent each
The present inflation target of 2 to 6 percent is appropriate for the next five years to ensure price stability, the Reserve Bank of India said in its report on currency and finance on February 26. The observation is significant amid speculation that the government may ask the central bank to relax inflation targets to shore up the economy.
“Threshold inflation above which growth is unambiguously impaired ranges between 5 and 6 percent in India, indicating that an inflation rate of 6 percent is the appropriate upper tolerance limit for the inflation target,” the report said.