Ajit Mishra, VP - Research, Religare Broking:
Markets extended rebound and gained over a percent amid excessive volatility. The benchmark started the day on a strong note, tracking firm global cues however profit-taking in the index majors, mainly from the banking pack, capped the upside as the session progressed. However, renewed buying in select heavyweights in the last hour helped the index to close around the day’s high. Consequently, Nifty settled above 14,900 levels; up by 1.1%. The broader market indices, midcap and smallcap, continued their outperformance and ended with strong gains of 1.6% each. On the sector front, all the indices ended in positive with IT and Auto leading the pack.
Markets are mirroring global indices and we expect this trend to continue in the coming sessions. Nifty is likely to fill the open gap but the performance of the banking index would be critical. We feel it’s prudent to continue with a stock-specific trading approach in the present market scenario while keeping a check on leveraged positions.
S Ranganathan, Head of Research at LKP Securities:
Markets exhibited buoyancy today despite its share of volatility in Tuesday's afternoon trade. IT stocks and Auto stocks led the rally while the broader market saw keen interest in Paper stocks on rising product prices.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The Nifty has crossed 14,950 which is the upper end of the resistance patch. If we can keep above that level for the next couple of days, we would be all set to reactivate the bullish undertone of the markets and should then see higher levels of 15,200-15,300. The new updated support for the Nifty is 14,600-14,650.
Vinod Nair, Head of Research at Geojit Financial Services:
Indian market witnessed a positive opening backed by a strong US market due to steady treasury bond yields, but market pared its gains as Asian peers traded weak. A quick recovery was seen towards the end of the session as investors hurried to buy on dips showing huge confidence & liquidity in the market. An improved outlook post-February auto sales numbers resulted in continued buying in auto stocks with IT sector also being a major contributor in the rally.
Jateen Trivedi, Senior Research Analyst at LKP Securities:
Rupee traded with range to weak moves between 73.30-73.50 cooling of after last two days of volatile scenario. As crude prices witnessed some ease of price and the Dollar index showed some stable range, rupee followed suit. Going ahead rupee can be seen between 73.25-73.60 range for a few session.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Index again opened a day with gap & hold its bullish stream for second consecutive day and activated the bullish harami candle pattern which formed in yesterday session hinting we may see some more upside if index managed to save 14,500 zone in the near term. On the immediate basis, index has support near 14,800-followed by 14,750 zone and any dip near said levels will be again buying opportunity and resistance is coming near 15k mark.
Rupee Closes:
Indian rupeeended 19 paisehigher at 73.36per dollar, amid buyingsawin the domestic equity market for the second consecutive day.It opened 20 paise higher at 73.35 per dollar against Monday's close of 73.55 and traded in the range of 73.31-73.48.
Jagran Prakashan approves share buyback
Jagran Prakashan at its meeting held on March 02 approved the buyback of the company's fully paid-up equity shares of face value of Rs 2 each for an aggregate amount not exceeding Rs 118,00,00,000 at a price not exceeding Rs 60 per equity share.
Market Close:
Benchmark indices ended higher for the second consecutive session on March 2 with Nifty above 14,900 supported by the IT and Auto stocks.
At close, the Sensex was up 447.05 points or 0.90% at 50,296.89, and the Nifty was up 157.60 points or 1.07% at 14,919.10. About 1813 shares have advanced, 1138 shares declined, and 166 shares are unchanged.
Tata Motors, M&M, Wipro, Adani Ports and NTPC were among the major Nifty gainers, while losers were ONGC, HDFC, Dr Reddy’s Labs, Coal India and Power Grid Corp.
Among sectors, Nifty IT and auto indices rose 3 percent each. BSE Midcap and Samllcap indices each added 1.5 percent.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited
The market witnessed some lackluster but positive movement in the market. Nifty 50 traded in a range between 14,800-14,940. The market has sustained over the decisive level of 14,850. The market to gain momentum and continue till the levels of 15,100. The momentum indicators like RSI, MACD to stay positive supporting our view that the upside movement is likely to continue.
Nirali Shah, Head of Equity Research, Samco Securities:
MTAR Technologies has come up with a Rs 600 crore IP0 which is set to open on Wednesday. The objective of the issue is to repay debt, working capital requirements and general corporate purposes. MTAR’s revenue and profits have grown at a CAGR of 15.7% and 140.3% respectively over FY18 to FY20. Overall the company has a good financial track record with a debt to equity ratio of 0.13 only.
On the risks front, the company derives over 80% of its revenue from its top 3 customers and 49% of revenue from Bloom Energy leading to concentration risk. Besides it does not have any long term contracts with its clients. Over all MTAR is overpriced at a FY20 P/E of 57.5 times. But it has been commanding a good grey market premium, indicating the offer will sail through. Keeping the risks in mind, we recommend to subscribe to this IPO for listing gains only.
Here are the stocks that have touched their 52 week highs during the day. Click for more
Abhishek Bansal, Founder Chairman, Abans Group:
WTI Crude oil prices have corrected from recent high and trading weak from the last three sessions in anticipation that OPEC may agree to increase global supply in a meeting this week. Also, Saudi Arabia will decide if it will end its voluntary 1.0 million BPD cut in crude production. However, Geopolitical risks in the Middle East are likely to keep oil prices firm.
Crude oil prices are likely to find support near 50 days EMA at $55.61 per barrel while key resistance levels are seen around $62.38 and $64.13 per barrel.
Nifty FMCG Index added a percent supported by the Jubilant FoodWorks, Nestle, ITC
Rupee trades higher
Indian rupee is trading higher at 73.42 per dollar, amid buying seen in the domestic equity market. It opened 20 paise higher at 73.35 per dollar against Monday's close of 73.55.
Lupin launches Penicillamine tablets USP
Lupin launched Penicillamine Tablets USP, 250 mg, having received an approval from the United States Food and Drug Administration (U.S. FDA) earlier, company aid in the release.
At 14:32 hrs Lupin was quoting at Rs 1,052.35, up Rs 29.80, or 2.91 percent on the BSE.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities:
Gold prices traded lower with COMEX spot gold prices were trading near USD 1,720 per ounce on Tuesday. Gold April future contract at MCX were trading near Rs 45,242 per 10 grams by noon. We expect gold prices to trade sideways to down for the day with COMEX spot gold support lies at USD 1,690 and resistance at USD 1,730. MCX Gold April support lies at Rs 44,900 and resistance lies at Rs 45,500.
European markets are trading flat with FTSE up marginally in the green
Bharti Airtel acquires 355.45 MHz and 2,300 MHz spectrum:
The company acquired 355.45 MHz and 2,300 MHz spectrum for Rs 18,699 crore. Telcos didn't bid for 700 MHz due to high reserve prices. All of the spectrum will enable Airtel to deliver 5G services in the future, the company said. At 14:00 hours, the stock was trading at Rs 536.50, up Rs 4.20, or 0.79 percent.
SEBI proposes updates to rules for independent directors of companies
The Securities and Exchange Board of India (SEBI), on March 1, proposed updated rules for the appointment, dismissal and remuneration of independent directors (IDs). SEBI has proposed that appointment and re-appointment of IDs be subjected to dual approvals – first from shareholders and majority of minority shareholders and then the promoter and promoter group, Mint reported.
Bajaj Healthcare gets Maharashtra Pollution Control Board nod
The company said that Maharashtra Pollution Control Board has vide its letter dated March 1, 2021 has given its consent to restart its manufacturing activities at the unit situated at Plot No.: N-178, MIDC Tarapur, Boisar. The stock was trading at Rs 495.50, up Rs 18.60, or 3.90 percent.
Currencies Update:
Asian shares fall:
Asia stocks dropped on Tuesday and European equity futures fell as a senior Chinese official expressed wariness about the risk of asset bubbles in foreign markets and a recent bond market sell-off still weighed on investor sentiment, reported Reuters.
Gaurav Garg, Head of Research at CapitalVia Global Research
Market opened on a high following the positive global cues but was unable to maintain the levels and is now trading near day low. Asian markets were trading in green with the reduced concerns over the inflation in the market. Domestic sentiments remain positive as investors remained positive with the Crisil report stating that the timely intervention by the government has helped the economy recover faster than what was expected.
Bank credit is also expected to grow to 9-10 percent in the next financial year. In the current financial year it is expected to grow by 4-5 Percent. Advance- Decline ratio still shows the positivity as the ratio is 36:14. The top gainers on the Nifty are M&M, BPCL, Hero MotoCorp, Wipro and Tech Mahindra. On the flip side ONGC, HDFC, Dr. Reddy, Shree Cements and UPL being the top losers.
Prestige Estates executes agreements with Blackstone
The company today executed the asset specific agreements with "BREP Acquirers" for sale of twelve assets/undertakings comprising of completed retail, office and hotel assets.
Hareesh V, Research Head Commodities at Geojit Financial Services:
A rally in global equities on economic optimism, strengthening of US dollar and a retreat in US treasury yields continue to hit the safe-haven status of gold and thus the price of the commodity. Meanwhile, hopes of fiscal stimulus measures from the US offer lower-level support to the metal.
Sentiment will continue to be on the lower side as long as it stays below the support of USD 1760. However, a direct turn above USD 1820 is required to negate the view and take prices higher.
Subex forms partnership with O-RAN Alliance:
Subex announced today that it has become a member of the O-RAN Alliance to support the development and standardisation of Open RAN (radio access networks).
At 12:41 hrs Subex was quoting at Rs 29.90, up Rs 2.45, or 8.93 percent on the BSE.
Bharat Electronics board to consider 2nd interim dividend
Bharat Electronics (BEL) share price jumped over 4 percent on March 2 as company's board would meet on March 16, 2021 to consider and approve a second interim dividend for the financial year 2020-21, the state-owned aerospace and defence firm said in the release.
The record date for the payment of the dividend on equity shares for the financial year 2020-21, if declared, would be March 24, 2021.
Asian Markets Update:
Asia extended the global rally in stocks on Tuesday as a halt in a recent bond markets sell-off eased investor nerves and lifted riskier assets, although oil prices were on the defensive on fears of slowing Chinese energy consumption, reported Reuters.
Arihant Capital Markets on MTAR Technologies:
At the upper price band of Rs 575, issue has been offered at a PE of 52 (x) to its FY20 EPS of Rs 11. Company is trading at premium to peer PE of 21(x). The company is aggressively priced, but considering its last two fiscals earnings, orders on hands worth Rs 336.2 crore and its plan for more critical and high margin products with its niche play for space, security and defence segment.
We assign a “Subscribe For Long Term” perspective, it has the potential to generate decent listing gains. MTAR has been a key partner to Indian Space Research Organization (ISRO), Defense Research and Development Organization, Nuclear Power Corporation of India Limited (NPCIL) and the US-based Bloom Energy, besides catering to several large Indian entities such as Bharat Dynamics and Hindustan Aeronautics in aerospace and defence. The company is also working with Israel- based Rafael Advanced Defense Systems and Elbit Systems on the exports front.
Buzzing:
Shipping Corporation of India (SCI) share price surged over 14 percent at open on March 2 after Department of Investment and Public Asset Management (DIPAM) Secretary said multiple expressions of interest were received for privatisation of the company and the said transaction will now move to the second stage.
Nifty Auto Index rose 1 percent led by the M&M, Hero MotoCorp, Bajaj Auto
Rupee trades higher
:Indian rupee erased some of the early gains but still trading higher at 73.40 per dollar, amid flat trading seen in the domestic equity market.It opened 20 paise higher at 73.35 per dollar against Monday's close of 73.55.
Market Updates
Benchmark indices erased early gains and trading flat with IT index up 1 percent.
At 11:22 IST, the Sensex was up 29.79 points or 0.06% at 49,879.63, and the Nifty was up 21.20 points or 0.14% at 14,782.70. About 1485 shares have advanced, 1058 shares declined, and 149 shares are unchanged.
Sriram Iyer, Senior Research Analyst at Reliance Securities:
International gold prices gave up gains on Monday as a stronger dollar and increased risk appetite among investors offset support from a fall in U.S. Treasury yields.
Silver prices too ended in the red on Monday. Domestic gold prices ended lower, tracking weak overseas prices. Silver ended flat on Monday.
Technically, MCX Gold April will continue its negative momentum below 45500 up to 45140-44900 levels. Resistance is at 45450-45800 levels.
MCX Silver May has given a breakdown below 67500 indicating a further downside fall up to 66900-65700 levels. Resistance is at 67800-68200 levels.
Sharekhan on Automobiles:
Stocks of most automobile companies have seen a strong run-up in their prices in the past six months due to faster-than-expected recovery in demand in the domestic market. Strong volume growth coupled with improving operational performance would drive up earnings as well as valuation multiples.
Hence, we retain our positive view on the sector. In the OEM space, we prefer ruralcentric companies with a strong balance sheet. In the 2W space, we prefer Hero MotoCorp, Bajaj Auto, and TVS Motor because of positive sentiments in rural, semi-urban,and exports.
In the CV space, we like Ashok Leyland and Tata Motors and expect them to benefit from the CV upcycle.
M&M share rises
Mahindra and Mahindra (M&M) share price was up 2 percent after registering a 25 percent jump in tractor sales for the month of February. Mahindra & Mahindra’s total tractor sales during the month registered a growth of 25 percent to 28,146 units, as against 22,561 units, YoY. Domestic tractor sales rose 24 percent to 27,170 units from 21,877 units, while exports grew 43 percent to 976 units from 684 units, YoY. CLSA has Mahindra & Mahindra as one of the top picks in the auto space. It is of the view that recovery in auto space continues off a low base. Tractor is the only segment that is growing strongly on a high base.
Kshitij Purohit, Product Manager, Currency & Commodities at CapitalVia Global Research:
In the international markets, the Dollar index was trading higher. Markets will be eyeing Federal Reserve Chairman Jerome Powell’s comments this week on how the Fed assuages the bond market selloff. Technically, USDINR March Future closed at 73.75 on previous trading session, market could see bearish retracement up to 73.50 levels and took support of the same and start rebounding towards 74.10 in today’s session.
It is facing resistance of 200 days SMA at 74.04 levels and taking the support at 73.40 level which is 100 days SMA. Asian equities have opened higher as US announced $1.9 stimulus package.
Oil & Gas index gains 1.5%
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments:
We are currently trading in the resistance zone of the Nifty. This range which is between 14,850-14,950 needs to be conquered if the markets want to resume the uptrend. We need to close above 14,950 at the very least. On the flip side, if we turn around from here, fresh shorting opportunities will emerge and take the markets south to levels closer to 14,500.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
In the brief fight between equity bulls and bond bears, it appears that equity bulls have won, at least in the first round. The US 10-year yield has stabilised at around 1.4 percent emboldening the equity bulls to come back with force pushing the US benchmark indices sharply higher on Monday. Equity bulls in India are likely to take cue from this positive global backdrop.
Adding to the global positivity, there are many domestic positive economic news like Rs 1.3 lakh crore GST collections in Feb, Rs 77000 cr from the first day of spectrum auction, declining crude prices and reasonably good news from auto sales in Feb. In brief, advantage bulls!
Rupee Opens:
Indian rupee opened 20 paise higher at 73.35 per dollar on Tuesday against Monday's close of 73.55, amid buying seen in the domestic equity market.On March 1, Indian rupee ended marginally lower at 73.55 per dollar against Friday's close of 73.46.
Nifty IT Index rose 2 percent led by the L&T Infotech, Wipro, Mindtree
Buzzing
Hero MotoCorp share price gained 1 percent on March 2 after the company announced its sales number for the month of February 2021.
The company's total sales were up 1.5 percent YoY to 5,05,467 units against 4,98,242 units and its total domestic sales were up 0.9 percent to 4,84,433 units versus 4,80,196 units.
The total exports of the company were up 18.1 percent YoY to 21,304 units versus 18,046 units.The company sold 41,744 scooters in February 2021 against 18,932 units in February 2020.
