Ajit Mishra, VP - Research, Religare Broking
:
Markets traded lackluster in a narrow range and finally ended marginally lower. Initially, the benchmark opened marginally higher however lack of follow-up buying capped upside. It hovered in a narrow band for most of the session which finally ended with a breakdown. Consequently, the Nifty index closed at 17,063.25 levels; down by 0.2%. Meanwhile, noticeable action on the broader front kept the participants busy. Mostly sectoral indices, barring realty, ended flat to marginally lower in line with the benchmark.
Markets are gradually drifting lower amid excessive intraday volatility, mirroring the global markets. Meanwhile, a mixed trend on the sectoral front is further adding to the participants’ worries. In such a scenario, it’s prudent to restrict positions and wait for clarity over the next directional move.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Investors traded with caution on the eve of the monthly F&O expiry, which also got reflected in the overall sentiment. After trading in positive territory for the better part of the session, indices eased marginally due to selective profit-taking in late trades. Also, there are multiple challenges ahead, and hence investors are staying on the sidelines amid worries over Russia-Ukraine crises and the subsequent rise in crude prices. Technically, Nifty has formed a small bearish candle and is also holding lower top formation, which is broadly negative.
We are of the view that the narrow range activity is likely to continue in the near future. For the short term traders, 17000 is immediate support and 17225 would be the key resistance level. One can expect a quick pullback rally up to 17150 -17175 levels, if Nifty trades above 17000. However, if the index slips below 17000, further correction is possible up to 16950-16850.
Mohit Nigam, Head - PMS, Hem Securities
:
Indian equity benchmarks snapped their 5-day losing streak with optimistic start on Wednesday. Markets traded with gains of over half a percent each in early deals as buying resumed after recent market slide. Markets trimmed some of their gains in late afternoon session and closed below the neutral line with the loss of 0.17%. Traders were cautious after Finance Minister Nirmala Sitharaman’s statement that the Russia-Ukraine crisis and the ensuing jump in global crude prices are a challenge to financial stability in India.
On technical fornt, Nifty50 may take immediate support and resistance at 16,850 level and 17,300 level respectively. In case of Bank Nifty 36,900 and 37,600 level will act as immediate support and resistance.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
Nifty had tested the crucial support of 16800 yesterday from where it started recovering. The index opened gap up on February 23 and attempted to continue with the recovery process. However it couldn’t sustain above the key hourly moving averages & dipped into the negative territory at the end of the day. In terms of the price pattern, Nifty has formed a triangular pattern on the daily chart & is witnessing consolidation within the pattern. The lower end of the pattern is at 16800 whereas the upper end is near 17300. Nifty is expected to witness further consolidation in this range post which it can resume the larger uptrend.
Vinod Nair, Head of Research at Geojit Financial Services
:
As global markets turned positive, domestic indices opened the day on a positive note, however, witnessed high volatility and succumbed to selling pressure to close the day in favour of bears. The impact of geopolitical uncertainties and soaring fuel costs will continue to keep markets across the globe highly volatile. Broader markets outperformed benchmark indices while on the sectoral front, realty stocks attracted buyers.
India Ratings pegs India's FY22 GDP growth at 8.6% on data revision
India Ratings has revised downwards its GDP growth forecast for 2021-22 to 8.6 percent from the consensus 9.2 percent projected earlier. The National Statistical Organisation (NSO), which has forecast 9.2 percent real GDP growth for the year, will release the second advance estimate of national income on Monday.
According to an India Ratings analysis, NSO is likely to peg the FY22 real gross domestic product growth at Rs 147.2 lakh crore. This translates into a GDP growth rate of 8.6 percent, down from 9.2 percent forecast in the first advance estimate released on January 7, 2022.
Market at close: Sensex is down 68.62 points or 0.12% at 57232.06, and the Nifty shed 28.90 points or 0.17% at 17063.30.
Mahesh Kumar, EVP & Head Capital & Commodities Market at Abans Group
:
Gold is currently trading at $1898 per troy ounce, a slight decrease from Monday's high of $1918.30 per troy ounce. However, prices have risen significantly from last year's low of $1680 per troy ounce in August 2021 to a multi-month high. Due to ongoing conflicts between Russia and Ukraine, geopolitical tensions are at an all-time high, which is beneficial to gold. In the short term, safe haven demand is likely to support gold prices.
Gold prices are likely to face stiff resistance as pandemic in the US has improved after the 7-day average of new US Covid infections fell to a 2-3/4 month low Monday of 86,852. Gold prices are in a bullish trend in the short term and are likely to trade higher while above key support levels of $1877-1869; however, it may face stiff resistance around the recent high of $1918.30.
Market Update at 3 PM: Sensex is down 52.04 points or 0.09% at 57248.64, and the Nifty shed 20.80 points or 0.12% at 17071.40.
Lupin Announces Executive Leadership Change
Lupin Announces Executive Leadership Change, Dr. Fabrice Egros to assume Corporate Development responsibilities as President, Corporate Development &
Growth Markets. He will lead the development and execution of the Company’s inorganic growth strategy, including mergers and acquisitions, business development, in-licensing arrangements, and related matters. He will continue to lead business in LATAM and Asia regions in this new role. Alan Butcher who was managing this role till now will be departing from the Company on February 28, 2022.
TVS Motor clocks 1 million exports in two wheeler segment in FY21-22
Two and three wheeler major TVS Motor Company on Wednesday said its exports in two wheeler segment clocked sales of one million (10 lakh) units, marking a significant milestone in the current financial year for the first time, the company said on Wednesday. The exports include the sales from TVS Motor and also from Indonesian unit PT TVS.
"The key exports include TVS Apache series, TVS HLX Series, TVS Raider and TVS Neo Series. An increase in sales in global motorcycles significantly contributed to this achievement", the company said in a statement.
The stock was trading at Rs 651.80, down Rs 10.45, or 1.58 percent. It has touched an intraday high of Rs 671.65 and an intraday low of Rs 648.90.
Nykaa shares rally nearly 5% on settlement of litigation with L'Oreal
FSN E-Commerce Ventures, which is widely known as Nykaa, gained as much as 4.6 percent on February 23, as the company finally settled its pending litigation with L'Oreal. The company informed exchanges on February 22 that the litigation with L'Oreal S.A. has been settled. "The certified true copy of the Delhi High Court order dated January 21, 2022 was received by the company on February 21."
In November 2019, L'Oreal S.A. had filed a case against FSN E-Commerce Ventures and Nykaa E-Retail, alleging copyright infringement and passing-off against Nykaa with respect to its trademark "Maybelline" and the trade dress and colour combination of its product "Maybelline New Lasting Drama Gel Liner".
The District Court in Delhi passed an ex-parte order, against which Nykaa preferred an appeal before the Delhi High Court. Both the companies have decided to go for settlement that was approved by the District Court as well as Delhi High Court.
European stocks open higher with all eyes on Ukraine
European stock markets climbed at the open on Wednesday, as investors tracked the latest developments in the Russia-Ukraine crisis. London's benchmark FTSE 100 advanced 0.5 percent to 7,531.42 points compared with Tuesday's closing level. In the eurozone, Frankfurt's DAX added 0.8 percent to 14,814.86 points and the Paris CAC 40 won almost one percent to 6,854.16.
Market alert
: US Futures extends gains, Dow Futures up nearly 250 points.
Buzzing Stock
PNC Infratech Limited has been declared the L1 (lowest) bidder in three new Hybrid Annuity Modelled National Highway Projects of NHAI for an aggregate bid project cost of Rs 4384 crore. The stock was trading at Rs 266.00, up Rs 20.90, or 8.53 percent. It has touched an intraday high of Rs 269.80 and an intraday low of Rs 247.35.
Market Update at 2 PM: Sensex is up 145.29 points or 0.25% at 57445.97, and the Nifty added 38.90 points or 0.23% at 17131.10.
Navneet Damani, Senior Vice President - Commodity & Currency Research, Motilal Oswal Financial Services
:
The spike has been driven primarily by fears of supply side disruptions as the threat of Russian invasion in Ukraine looms large following Putin’s deployment of troops. Sanctions forcing Russia to supply less crude or natural gas would have substantial implications on oil prices and the global economy. Russia accounts for one in every 10 barrels of oil consumed globally, so it is a major player when it comes to the price of oil and it's really going to hurt consumers at the petrol pumps.
SC defers hearing of Amazon vs Future Case
The Supreme Court on February 23 deferred the hearing on Amazon’s plea seeking resumption of international arbitration proceedings in a dispute with Future Group.
The present case, the Supreme Court said, is in one way or the other connected with the outcome of the NCLAT’s decision on the validity of the CCI order. The NCLAT is scheduled to hear the appeal on February 25. Accordingly, the Supreme Court deferred the hearing till NCLAT concludes its hearing.
ICICI Securities on Mahindra & Mahindra
: The auto space has remained a laggard in the last couple of months with stocks like Mahindra & Mahindra underperforming the Nifty, falling 18%, compared to 10% downside seen in the Nifty from its lifetime highs. However, early signs are there that the underperformance of the auto space may be over vis-à-vis the index. We expect stock like Mahindra & Mahindra to lead the recovery. During September-October 2021, the stock moved up sharply along with significant closure of open interest indicating short covering move. Since then, it has consolidated and traded in the range of | 800-1000. Recently, despite market volatility, the stock has held its levels and accumulated fresh open interest, indicating ongoing accumulation in the stock.
The stock has taken support near Rs 800-850 levels in multiple instances. Also, looking at the significant delivery volume activity in January 2022 and then in early February 2022, these levels seem very crucial. In such a scenario, the positive bias may continue in the stock till these levels are held. Any declines below these levels witnessed fresh buying. As the stock is moving above these levels once again, continued upsides are expected towards Rs 1000.
Market Update at 1 PM: Sensex is up 171.79 points or 0.30% at 57472.47, and the Nifty rose 45.50 points or 0.27% at 17137.70.
Crompton Greaves Consumer shares rally
Crompton Greaves Consumer said that it signed definitive agreements on February 22 to acquire up to 55% stake in Butterfly Gandhimathi Appliances for Rs 1,379.68 crore as the electrical consumer durables company looks to raise its play in small domestic appliances. The company, which will do the deal at Rs 1,403.00 per share, will also buy certain Butterfly trademarks from promoter group entities for Rs 30.38 crore.
Moreover, Crompton will also launch a mandatory open offer for 26% of the firm engaged in manufacturing, marketing and distribution of kitchen and small domestic appliances, at a price of Rs 1,433.90 per share. This prices the open offer at Rs 666.57 crore.
The stock was trading at Rs 401.00, up Rs 22.40, or 5.92 percent. It has touched an intraday high of Rs 403.60 and an intraday low of Rs 377.20.
Market alert
From AFP | Russian President says Moscow ready to look for ‘Diplomatic Solutions’ with West over Ukraine.
The Midcap index added a percent led by CG Consumer, Adani Power and Oberoi Realty
Cadila Healthcare | Zydus gets US FDA nod for Dapagliflozin tablets
Zydus has received final approval from the USFDA to market Dapagliflozin Tablets in the strengths of 5 mg and 10 mg used with a proper diet and exercise program to control high blood sugar in people with type 2 diabetes. Dapagliflozin also lowers the risk of heart failure in adults with type 2 diabetes with heart disease. It is also used to lower the risk of further worsening of kidney disease, end-stage kidney disease (ESKD), death due to cardiovascular disease, and hospitalization for heart failure in adults with chronic kidney disease. Dapagliflozin works by increasing the removal of sugar by kidneys. The drug will be manufactured at the group’s formulation manufacturing facility at the SEZ, Ahmedabad. The stock was trading at Rs 374.50, up Rs 7.75, or 2.11 percent. It has touched an intraday high of Rs 376.55 and an intraday low of Rs 368.
Bikaji Foods International files draft papers with SEBI
Bikaji Foods International Ltd has filed a draft papers with Securities Exchange Board of India (SEBI) to raise funds via initial public offering. The Initial public offering (IPO) consists of a pure offer for sale of upto 29.37 million shares by its existing promoters and shareholders.
The OFS comprises of upto 2.5 million shares each by Shiv Ratan Agarwal and Deepak Agarwal. upto 12.11 million shares by India 2020 Maharaja Ltd, 3.11 million shares by IIFL Special Opportunities Fund, upto 2 million shares by IILF Special Opportunities FUnd Series 2, upto 0.97 million shares by IIFL Special Opportunities Fund Series 3, upto 2.75 million shares by IIFL Special Opportunities Fund Series 4, upto 2.16 million shares by IIFL Special Opportunities Fund Series 5 and upto 1.22 million shares by Avendus Future Leaders Fund I.
Market Update at 12 PM
Sensex is up 335.36 points or 0.59% at 57636.04, and the Nifty gained 96.10 points or 0.56% at 17188.30. Titan Company, Kotak Mahindra Bank and Asian Paints are the top gainers while Kotak Mahindra bank, Adani Power and Tata Motors are the most active stocks.
All sectoral indices are trading in the green with the realty index up 3 percent. BSE midcap and smallcap indices added a percent each.
Mahindra Finance launches Special Deposit Schemes
Mahindra Finance launches Special Deposit Schemes for digitally affluent customers. The interest rate on deposits for 30 & 42 months are pegged at 6.20% and 6.50% respectively. These schemes carry a higher rate of 20 bps per annum and senior citizens will be entitled for another 20bps higher benefit
Markets continue to trade higher, Sensex up 0.6%, Nifty near 17,200 at 11:30 am
Source: BSE
Indian rupee surges 21 paise to 74.63 against US dollar in early trade
The rupee recovered 21 paise to 74.63 in early trade on Wednesday tracking positive domestic equities as investors continued to keep a watch on the latest developments around Ukraine.
The local currency opened on a strong note at 74.64 to a dollar at the interbank foreign exchange market and inched higher to 74.63, registering a gain of 21 paise over its previous close.
On Tuesday, the rupee depreciated by 29 paise to close at 74.84 against the US currency.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.04 per cent higher at 96.06.
Anupam Agal, Head Operations & Legal, Motilal Oswal Financial Services
“Settlement marks the official transfer of securities to the buyer's account and cash to the seller's account. Indian stock exchanges follow T+2 days settlement i.e. settlement of funds & securities happens on two business days after the day the order executes, or T+2 (trade date plus two days). For example, trade executed on Monday, would typically settle on Wednesday.
Earlier in 2003, the regulator had shortened the settlement cycle from T+3 rolling settlement to T+2. Now regulator plans to reduce it further to T+1 settlement cycle for completion of share transactions to enhance market liquidity.T+1 should be a good move making settlement cycle shorter reducing margin requirement for clients with margin blocked for just 1 day, thereby increasing retail participation & investments coming to equity markets.
The Stock Exchanges have informed of implementing T+1 settlement cycle in a phased manner, starting with bottom 100 stocks in terms of market value, from February 25, 2022. Thereafter, 500 more stocks will be added based on the same market value criteria from the last Friday of March 2022 and every following month. Those transacting in stocks falling under T+1 settlement cycle will get their money or shares delivered in less than 24 hours.
T+1 settlement system will shorten the settlement cycle by a day reducing risk of pay-in/pay-out defaults, lower margin requirements and give investors more liquidity with availability of funds and securities.”
Market Update at 11 AM: Sensex is up 185.13 points or 0.32% at 57485.81, and the Nifty added 54.70 points or 0.32% at 17146.90.
Oil pulls back on fading supply worries over Ukraine crisis
Oil prices took a breather on Wednesday after surging to seven-year highs the previous session as it became clear the first wave of US and European sanctions on Russia for sending troops into eastern Ukraine would not disrupt oil supplies. At the same time, the potential return of more Iranian crude to the market, with Tehran and world powers close to reviving a nuclear agreement, also kept a lid on prices.
Brent crude rose 30 cents, or 0.3%, to $97.14 a barrel at 0442 GMT, after soaring as high as $99.50 on Tuesday, the highest since Sept. 2014.
Prices jumped on Tuesday on worries that western sanctions on Russia for sending troops into two breakaway regions in eastern Ukraine could hit energy supplies, but the United States made it clear there would be no impact on energy exports.
Buzzing Stock
Bajaj Healthcare Limited announced that it has launched Magnesium L-Threonate in nutraceutical segment. Magnesium L- Threonate is a nutritional supplement used to normalize magnesium level in the body, helps to improve memory, muscle and nerve function and also aids in brain development by reversing the brain aging. It is used to control, prevent and normalize the symptoms associated with Alzheimer’s disease, Attention disorder, Bipolar disorder, Parkinson’s disease etc. Bajaj Healthcare was trading at Rs 390.60, up Rs 17.10, or 4.58 percent. It has touched an intraday high of Rs 399.00 and an intraday low of Rs 375.85.
IndiaMART InterMESH to acquire 26% stake in IB MonotaRO for Rs 104.2 crore
IndiaMART InterMESH Limited has entered into an agreement to acquire 26% of the share capital (on fully diluted basis) of IB MonotaRO Private Limited. The company intends to invest upto Rs 104.2 crore approximately in IMPL by acquiring 8,11,250 equity shares at a price of Rs 1,284.15 per equity share from an existing shareholder via secondary purchase. IndiaMART InterMESH stock was trading at Rs 4,834, up Rs 44.20, or 0.92 percent.
It has touched an intraday high of Rs 4,977.85 and an intraday low of Rs 4,805.
The realty index added over 2 percent led by Sobha, Oberoi Realty and DLF
NSE colocation scam: Some foreign shareholders dumped NSE shares just before SEBI order on Chitra Ramakrishna
There was a flurry of activity in National Stock Exchange (NSE) shares in January just before market regulator SEBI issued an order on the stock exchange’s former MD and CEO Chitra Ramkrishna for sharing confidential information with an ‘unknown yogi from the Himalayas.’ This can be seen from the details of the share transfers published on the NSE website.
Of the 209 transactions in NSE shares, more than one-third involved foreign shareholders selling to domestic investors. A total of 11.61 lakh shares were sold by foreign investors for prices between Rs 1,650 and Rs 2,800 per share with a vast majority of those deals being struck below Rs 2,000. It could not be confirmed if the shares were sold by one foreign investor or many.
While 11.61 lakh shares account for 0.2 percent of NSE's equity base, it must be noted that NSE shares are not traded actively since they are unlisted.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One
Our domestic market plummeted in the early trade amid the crackdown in the global market. The benchmark index Nifty50 slipped over 2 percent to breach the psychological mark of 17000 and has made a low of 16843 in initial trades. Gradually, the market gained control over the fall and witnessed some resurgence from the lower end to conclude the day tad below 17100.
The volatility index has seen a huge surge from the past couple of trading sessions, which is to be seen as a matter of concern for the market participants. On technical aspects, the index has managed to sustain above the previous swing low and is also hovering just above the 200 SMA & DEMA. At present, the 16800 odd levels tend to provide strong support to the index and till the level is sustained, we might expect some retaliation from the domestic participants at lower levels (if there is no aberration on the global front). In contrast, 17200 – 17250 could be seen as the immediate resistance zone followed by the sturdy wall of 17500 for the near future.
Thus, as long as the global uncertainty looms over, the volatility index is expected to remain on the higher side and the market is likely to remain tentative with huge whipsaw movements. Hence, it is advisable to stay light on positions and avoid carrying aggressive overnight bets.
Market update at 10 AM: Sensex is up 323.00 points or 0.56% at 57623.68, and the Nifty added 95.40 points or 0.56% at 17187.60.
UBS On BPCL
Buy rating, target at Rs 600 per share. The company is seeing a three-way transformation; it’s gearing up to India’s energy transition, focussing on enhancing petchem integration & have ambitious plans for non-fuel retailing. There is further scope of earnings upgrade on strong refining margin. See potential improvement in valuation multiples with right transition theme. The stock was trading at Rs 359.90, up Rs 4.55, or 1.28 percent. It has touched an intraday high of Rs 360.60 and an intraday low of Rs 357.75.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
The major impact of the Ukraine crisis in India is the implications of crude at $97. If crude sustains at around these high levels, inflation in India is sure to go up, forcing the RBI to revise its FY 23 inflation target upwards and signal withdrawal from the accommodative monetary stance. This would be negative from the growth and earnings perspective.
Higher crude prices are negative for tyre, paints and FMCG segments. Financials, particularly high quality banks, have valuation comfort. IT is likely to exhibit resilience thanks to good earnings visibility.
BSE Realty index added 1 percent led by the Sobha, Prestige Estates Projects, Indiabulls Real Estate
Rahul Kalantri, VP Commodities, Mehta Equities:
Gold and silver gained on Tuesday due to safe-haven buying after escalating Russia-Ukraine tensions. Traders in the US markets returned after long week-end and preferred safe-haven assets in war situation.
We expect both precious metals to remain volatile in today’s session but continue to hold its support levels. Gold has support at $1896-1884, while resistance at $1922-1934 per troy ounce. Silver has support at $24.00- 23.66, while resistance is at $24.60-24.88 per troy ounce.
In INR gold has support at Rs 50,028–49,727, while resistance is at Rs 50,658–50,987. Silver has support at Rs 63,895- 63,446 while resistance is at Rs 64,769–65,194.
Gainers and Losers on the BSE Sensex in the early trade:
Market Opens:
Indian indices opened on positive note on February 23 with Nifty around 17,200 amid mixed global cues.
At 09:16 IST, the Sensex was up 307.15 points or 0.54% at 57607.83, and the Nifty was up 95.30 points or 0.56% at 17187.50. About 1388 shares have advanced, 554 shares declined, and 60 shares are unchanged.
Kotak Mahindra Bank, Tata Motors, Maruti Suzuki, BPCL and M&M were among major gainers on the Nifty, while losers were ONGC and L&T.
ICICI Direct
Indian markets are likely to open on a positive note on the back of mixed Asian cues as the focus remained on the Russia-Ukraine conflict. Volatility is expected to persist ahead of the expiry of monthly futures & options contracts on Thursday.
US markets ended lower amid escalating tension between Russia and Ukraine.
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Crompton Greaves Consumer swoops on Butterfly Gandhimathi Appliances
Crompton Greaves Consumer said that it signed definitive agreements on February 22 to acquire up to 55% stake in Butterfly Gandhimathi Appliances for Rs 1,379.68 crore as the electrical consumer durables company looks to raise its play in small domestic appliances.
The company, which will do the deal at Rs 1,403.00 per share, will also buy certain Butterfly trademarks from promoter group entities for Rs 30.38 crore.
FII and DII data
Foreign institutional investors (FIIs) have net sold Rs 3,245.52 crore worth of shares, whereas domestic institutional investors (DIIs) have net bought Rs 4,108.58 crore worth of shares in the Indian equity market on February 22, as per provisional data available on the NSE.
