Closing Bell: Nifty ends above 17,700, Sensex up 415 pts; IT, auto, oil & gas, power gain

Anuj Dixit, Head of Equities, Sovereign Global

After a gap up opening at 17,680, Nifty continued to rally higher and closed the gap area between 17,800 and 17,782 made in 21st and 22nd Feb 2023.

50-day SMA is placed at 17,811 while 20-day SMA is at 17,650. For further strength, Nifty has to move beyond 17,811 levels decisively. Above 17,811, will open gate for 18,030-18,100 in the short term.

Only a decisive break of 17,650 levels with change the short term from Up to Down and then Nifty might slip towards 17,450 levels sharply.

Rupak De, Senior Technical Analyst at LKP Securities

Nifty pared early gains as the benchmark index failed to surpass resistance at 17,800. On the daily chart, the Nifty closed within the falling channel following an intraday breakout from the said channel.

On the daily chart, a shooting star kind of candlestick pattern has formed, suggesting a bearish reversal. A fall below 17,650 may trigger a steep correction in the market. While a sustained trade above 17,750 may induce buying in the market.

Kunal Shah, Senior Technical Analyst at LKP Securities:

The Bank Nifty index witnessed some selling pressure from higher levels but the broader trend remains bullish and one should keep a buy-on-dip approach.

The index lower-end support stands at 41,000 where the highest open interest is built up on the put side and the upside resistance is at 42,000. The index is likely to trade in this range for the next couple of trading sessions.

Vinod Nair, Head of Research at Geojit Financial Services

The major concerns that prevailed in the market during the previous weeks were the fear of aggressive Fed policy action, which led to a rise in treasury yields & US dollar, and the uncertainties surrounding Adani.

All of these have now shifted in favour of the bulls, as US officials reduced the likelihood of a sharp rate hike, forcing yields and the dollar index to moderate.

Additionally, improved market sentiment due to the foreign bulk deal at Adani, the oversold stage of the domestic market, and FII buying helped sharpen the recovery.

Rupee Close:

Indian rupee closed marginally higher at 81.92 per dollar on Monday against Friday's close of 81.97.

Market Close

Benchmark indices ended higher for the second consecutive session on March 6 with Nifty above 17,700.

At close, the Sensex was up 415.49 points or 0.69% at 60,224.46, and the Nifty was up 117.20 points or 0.67% at 17,711.50. About 2049 shares have advanced, 1430 shares declined, and 189 shares are unchanged.

Adani Enterprises, Tata Motors, ONGC, NTPC and Power Grid Corporation were among the top gainers on the Nifty, while losers included Britannia Industries, Tata Steel, JSW Steel, Hindalco Industries and IndusInd Bank.

Except metal, realty and PSU Bank, all other sectoral indices ended in the green.

The BSE midcap index rose 0.7 percent and smallcap index added nearly a percent.

CLSA View On GAIL India

-Buy rating, target at Rs 125 per share
-Indication from regulator raises hopes of over 50 percent tariff hike
-Important progress in achieving a unified national gas grid system
-Revenue neutral now but a long-term positive for gas transmission players
-Final tariff order is likely any time after open house on 6 March
-Model a 40 percent hike, while a 52 percent hike would boost FY24 EPS estimate by 7 percent
-Higher share of stable utilities earnings would also drive a re-rating

JLR February auto sales | JLR UK sales up 33% YoY at 1,670 units against 1,253 units, YoY.

Adani Ports & Special Economic Zone is higher for the eighth straight day, on track for the longest winning streak since the period ended March 10, 2014: Bloomberg.

GMR Airports Infrastructure share price continued to rally on the sixth consecutive session on March 6 and on track to for the longest winning streak since June 2016.

Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas:

Indian Rupee touched a fresh one month high of 81.62 on extended rally in the domestic markets and fresh foreign inflows. Positive Asian currencies also supported the domestic currency.

We expect Rupee to trade with a slight positive bias on rise in risk appetite in global markets and a soft Dollar. Overall weak tone in crude oil and FII inflows may also support Rupee.

However, global economic slowdown may cushion the downside. Dollar can witness some volatility this week ahead of Fed Chair Powell’s testimony and labour market data from US later this week. USDINR spot price is expected to trade in a range of Rs 81.20 to Rs 82.20.

Nifty Auto index up 1 percent supported by Tata Motors, TVS Motor, Tube Investments

Market at 3 PM

Benchmark indices were trading higher with Nifty around 17,700.

The Sensex was up 408.95 points or 0.68% at 60,217.92, and the Nifty was up 115.40 points or 0.66% at 17,709.70. About 1982 shares have advanced, 1347 shares declined, and 168 shares are unchanged.

Zydus Lifesciences shares gains on USFDA approval for Vigabatrin for oral solution

Zydus Lifesciences has received final approval from the United States Food and Drug Administration (USFDA) for Vigabatrin for oral solution. Vigabatrin for oral solution is indicated for the treatment of refractory complex partial seizures as adjunctive therapy in patients 2 years of age and older.

The drug will be manufactured at formulation manufacturing facility in Moraiya, Ahmedabad.

Vigabatrin had annual sales of $233.7 million in the United States as per IQVIA MAT data dated December 2022.

Zydus Lifesciences was quoting at Rs 475.95, up Rs 3.15, or 0.67 percent on the BSE.

Linde India picks 26% stake by investment in FPEL Surya

Linde India has invested Rs 7.69 crore in renewable power company FPEL Surya for subscription of 15.39 lakh equity shares (26%). The objective of stake acquisition is to purchase renewable power under captive mechanism, which will result in a lower tariff and consequent cost savings.

Linde India was quoting at Rs 3,746.40, up Rs 28.50, or 0.77 percent on the BSE.

Urja Global signs MoU with UP government for solar based charging stations

Urja Global has executed memorandum of understanding (MoU) with Government of Uttar Pradesh for solar based charging stations & electric car manufacturing unit.

Urja Global was quoting at Rs 8.28, up Rs 0.02, or 0.24 percent.

Pankaj Kumar, Research Analyst, Vice President – PCG Research, Kotak Securities on commercial real estate sector

:

Commercial real estate in top Indian cities in Q3 FY23 saw the second-highest quarterly gross absorption in the past 10 years at 20 million square feet. Net absorption at 9.5 million exceeded new supply in the quarter, leading to lower vacancy at 15.2% with Mumbai led the improvement. Our conversations with commercial space owners suggest that the demand scenario is robust, with rising occupancy across geographies. REITs have made representations to the government on the taxation issue, and expect a clarification soon. Recent price corrections have made yields more attractive (7.7% on FY24E). Any regulatory clarities on taxation and SEZ de-notification may act as triggers for stock performance.

Mark Matthews, Head Research Asia, Julius Baer on Indian stock market

As of December 2022, domestic institutional ownership continues to remain at record highs (13.7%), as domestic institutional investors pour money into the Indian markets on the back of strong retail participation via monthly Systematic Investment Plans. Encouragingly, foreign institutional ownership has also started bouncing back from decade lows. We maintain our overweight stance on India, with a Sensex target of 70,000 (17% upside from current level).

Buoyed by strong retail participation via monthly Systematic Investment Plans (SIPs), domestic institutional investors’ (DIIs) ownership continues to hit record highs quarter after quarter and has increased by 160bps, from 12.1% in March 2022 to 13.7% in December 2022. Foreign institutional investors’ (FIIs) ownership also bounced back by 50bps, from decade lows of 18.4% in June 2022 to 18.9% in December 2022.

European Markets Updates

Market at 2 PM

Benchmark indices erased some of the intraday gains but still trading higher with Nifty above 17700.

The Sensex was up 498.37 points or 0.83% at 60,307.34, and the Nifty was up 139.80 points or 0.79% at 17,734.10. About 2023 shares have advanced, 1273 shares declined, and 170 shares are unchanged.

BSE Power index added 2 percent led by JSW Energy, Adani Green Energy, Adani Transmission

Morgan Stanley picks additional 0.33% stake in JSW Ispat Special Products

Morgan Stanley Asia (Singapore) Pte & Morgan Stanley India Company bought additional 15.59 lakh shares or 0.33% stake in JSW Ispat Special Products via open market transactions on March 1. With this, Morgan Stanley's shareholding in JSW Ispat has increased to 5.2%, up from 4.86% earlier.

JSW Ispat Special Products was quoting at Rs 30.39, up Rs 0.10, or 0.33 percent.

NCLT approves merger of Chloride Power Systems with parent company Exide Industries

NCLT, Kolkata has given its approval for merger of Chloride Power Systems with its parent company Exide Industries.

Exide Industries was quoting at Rs 181.85, up Rs 1.30, or 0.72 percent on the BSE.

Shareholders, creditors approve demerger of E-Governance & IT/ITES business of Vakrangee

Equity shareholders and creditors of Vakrangee have approved the scheme of arrangement for demerger of E-Governance & IT/ITES business of Vakrangee into VL E-Governance & IT Solutions.

Vakrangee was quoting at Rs 23.30, up Rs 0.27, or 1.17 percent.

Rupee up 32 paise, rises to test highest level versus dollar since Jan 23

Indian rupee rose to test highest level versus USD since January 23.

It is trading higher by 32 paise at 81.65 per dollar on Monday against Friday's close of 81.97.

Century Plyboards commences 2nd line of production of MDF unit at Punjab

Century Plyboards has completed expansion of its Medium Density Fiber (MDF) board unit at Hoshiarpur in Punjab and has successfully started commercial production at the new manufacturing line with effect from 5th March, 2023.

Gold prices ease as traders fret about interest rates

Gold prices ticked lower on Monday as central banks indicated further interest rate hikes to tame stubbornly high inflation, diminishing the metal's appeal.

Spot gold was down 0.1% at $1,853.92 per ounce, as of 0708 GMT, after climbing to its highest since Feb. 15 earlier in the session. U.S. gold futures rose 0.3% to $1,859.60.

Tata Steel Large Trade | 109.02 lakh shares (0.89% Equity) worth Rs 116.29 crore change hands at average of Rs 106.75 per share, reported CNBC-TV18.

Praveen Singh – AVP, Fundamental currencies and Commodities Analyst at Sharekhan by BNP Paribas:

Gold settled sharply higher Friday with a gain of 1.1% as the ten-year US yields slumped below 4% despite better than expected US ISM non-manufacturing data. The data came in at 55.10 as against the forecast of 54.50; however, the prices paid at 65.60 were lower than the forecast of 67.80, which assuaged the inflation concerns to some extent, thus boosting the risk-on sentiments.

This week is a crucial week for the markets as we have got US non-farm payroll job report on the cards. ADP data, a precursor of the NFP job report, will be released Wednesday.

Gold is expected to consolidate ahead of Federal Reserve Chair Powell's testimony tomorrow.

Overall, gold rally is vulnerable as US data remain strong amid inflationary expectations firming up.

Support is at USd 1850/1830. Resistance is at USD 1862/1875.

Pankaj Kumar, Research Analyst, Vice President – PCG Research, Kotak Securities:

Commercial real estate in top Indian cities in Q3FY23 saw the second-highest quarterly gross absorption in the past 10 years at 20 mn sq. ft. Net absorption at 9.5 mn exceeded new supply in the quarter, leading to lower vacancy at 15.2% with Mumbai led the improvement.

Our conversations with commercial space owners suggest that the demand scenario is robust, with rising occupancy across geographies.

REITs have made representations to the government on the taxation issue, and expect a clarification soon. Recent price corrections have made yields more attractive (7.7% on FY24E). Any regulatory clarities on taxation and SEZ de-notification may act as triggers for stock performance.

Best Agrolife board approves capex plan of Rs 200 crore

The board of Best Agrolife approved capex plan of Rs 200 crore (i,e. Rupees 150 crore towards Brownfield expansion in the technical manufacturing unit of Best Crop Science Private Limited (a wholly owned subsidiary of the Company) and Rs 50 crore towards Brand Building and market footprints expansion.

Market at 1 PM

Benchmark indices were trading higher in the afternoon session with Nifty around 17,750.

The Sensex was up 590.97 points or 0.99% at 60,399.94, and the Nifty was up 163.80 points or 0.93% at 17,758.10. About 2069 shares have advanced, 1200 shares declined, and 159 shares are unchanged.

BSE Midcap index rose 1 percent supported by JSW Energy, Adani Power, Samvardhana Motherson International

1.5 million shares of IDFC First Bank has changes hand in a bunch: Bloomberg

Manappuram Finance shares gain as SBI Mutual Fund picked stake

SBI Mutual Fund has acquired 48 lakh equity shares (over half a percent) in Manappuram Finance via open market transactions at an average price of Rs 106.59 per share.

Macquarie View On Nykaa

-Initiate underperform rating, target at Rs 115 per share
-Company faces risk to beauty segment margin as growth moves to smaller towns/offline
-Competition threat looms over the company
-Experience from physical retail makes us cautious on owned brand focus
-Limited operating history & need for growth investments make us cautious on EPS

On NSE

Birlasoft opens new delivery centre in Coimbatore

Birlasoft today announced the opening of a new Delivery Centre in Coimbatore to enable enterprises scale up their delivery and optimize cost.

The new facility will focus on Birlasoft’s delivery capabilities in cloud space, digital and testing requirements, company said.

Texmaco Infrastructure & Holdings director Ramya Hariharan resigns

Texmaco Infrastructure & Holdings: Raniya Flariharan has resigned as independent director of company due to her professional commitments. Company confirmed that there is no other material reason for resignation of Hariharan.

Texmaco Infrastructure & Holdings touched a 52-week low of Rs 49.15 and was quoting at Rs 52, up Rs 0.32, or 0.62 percent on the BSE.

Market at 12 PM

Benchmark indices were trading near the day's high with Nifty around 17800.

The Sensex was up 608.29 points or 1.02% at 60,417.26, and the Nifty was up 183.80 points or 1.04% at 17,778.10. About 2180 shares have advanced, 1060 shares declined, and 152 shares are unchanged.

Elara Capital keeps buy rating on Tech Mahindra

Tech Mahindra is our top pick along with TCS among Tier1 firms, said Elara Capital.

We prefer Tech Mahindra on: i) margin expansion in FY24, which will aid robust earnings; ii) attractive valuation and iii) leadership change (CEO C.P. Gurnani to retire in Dec-23), it added.

Broking house reiterates buy with on the stock with a target of Rs 1,320 on 15.9x one-year forward P/E.

Info Edge India subsidiary invests Rs 5.2 crore in Sploot

Redstart Labs (India), a wholly-owned subsidiary of Info Edge India, has agreed to invest about Rs 5.2 crore in Sploot, a community and content-led platform for pet parenting.

Redstart will acquire 1,822-compulsorily convertible preference shares as primary acquisition of shares.

The aggregate shareholding of the company through Redstart, post this investment, in Sploot would be 24.13% on fully converted & diluted basis.

Orchid Pharma signs MoU with overseas technology provider

Orchid Pharma and its subsidiary Orchid Bio Pharma has entered into a Memorandum of Understanding (MoU) with an overseas technology provider for in-licensing 7ACA technology.

In July 2022, Competent Authority had granted approval to Orchid-Bio Pharma under the production linked incentive (PLI) Scheme for manufacturing of product '7 ACA'.

Orchid Pharma was quoting at Rs 385.00, up Rs 3.50, or 0.92 percent.

On the BSE: