Market closing: The Sensex was down 440.76 points or 0.87% to 50,405.32 at close while the Nifty ended the day at 14,938.10, down142.65 points or 0.95%. Indian equity benchmarks closed lower for the second straight trading session amid volatility triggered by high bond yields.
The Sensex and Nifty were down 1% for the second straight trading session after Fed Reserve chairman Jerome Powell's remarks on holding market intervention even amid better than expected recovery spooked global markets leading to selloffs and rise in bond yields.
05 Mar 2021, 03:47:32 PM IST
Benchmark Indian equity indices closed nearly 1% lower amid volatility. The Sensex closed down 440.76 points or 0.87% at 50,405.32, while the Nifty ended the day at 14,938.10, down 142.65 points or 0.95%. ONGC, Maruti Suzuki, Kotak Mahindra Bank and Nestlé India led the nine stocks that ended in green on the 30-share gauge. Metals, banks and financials saw heavy selloffs through the day.
05 Mar 2021, 03:25:24 PM IST
ICICI Lombard's board approves proposal for interim divided
ICICI Lombard General Insurance Co. Ltd's board of directors has approved declaration and payment of interim dividend of ₹4 per share at the rate of 40.0% of face value of ₹10 each, for FY2021, the insurer said in a regulatory filing.
The interim dividend will be paid to shareholders whose names appear in the
record of the company as on 19 March. The interim dividend will be paid to the shareholders on or before 4 April.
Utkarsh Small Finance Bank has filed a draft red herring prospectus with the Securities Exchange Board of India to raise₹1,350 crore via an initial public offering (IPO).
The offer comprises a fresh issue of up to ₹750 crore and an offer for sale by Utkarsh Coreinvest Ltd aggregating to ₹600 crore.
05 Mar 2021, 03:06:35 PM IST
Bhushan Power's lenders vote for JSW Steel's deal terms
Bhushan Power and Steel Ltd's (BPSL) lenders voted in favour of accepting JSW Steel’s terms to close the deal by month-end, CNBC-TV18 reported citing people familiar with the matter.
“We are all in agreement on JSW’s condition that in case the Supreme Court rules against their takeover of Bhushan Power, we will return the money," said the head of a large public sector bank with significant exposure to the debt-ridden steelmaker.
EaseMyTrip IPO may list at a greater premium in the short run: JST Investments
The IPO is all set to open on 8 March and close on 10 March. The issue is a complete offer for sale worth ₹510 crore. At the upper price band of ₹187, the issue is priced at a 49.9x P/E ratio and 15.4x P.BV which is very expensive.
EaseMyTrip will be the first Indian travel aggregator to get listed on the exchanges (MakeMyTrip, an Indian travel aggregator got listed on NASDAQ in 2010). The investor interest in the IPO this going to be very high and this is confirmed by the fact that its grey market premium is at ₹140 (75% premium). It seems that in the short term the IPO may list at a great premium.
In FY18, FY19, FY20, and in the nine months ended December 31, 2020, the advance written off amounted to ₹293.11 million, ₹29.50 million, ₹9.02 million, and ₹3.56 million, respectively. The ₹293 million write-off that they did was due to a certain producer loan. Interestingly MakeMyTrip has filed a commercial suit before the Delhi high court, seeking a permanent injunction to restrain the company (EaseMyTrip) from using the EaseMyTrip names and logos as it sounds similar to theirs.
Further, there is no assurance that the company can successfully fight a new deep-pocketed player who can come to burn cash and disrupt the online ticketing market players.
Considering all of the above, we would like to monitor more things before forming a long-term view on the company," said Aditya Kondawar, founder JST Investments.
05 Mar 2021, 02:40:27 PM IST
Saudi asks New Delhi to use cheap moil bought last year
International oil prices rose after Opec and its allies ignored India's plea to ease production control, with Saudi Arabia asking New Delhi to instead use oil it bought at rock bottom rates last year.
Brent crude, the most widely used benchmark, on Friday rose nearly 1% to $67.44 a barrel after the Organization of the Petroleum Exporting Countries (Opec) and its allies, the Opec+ , agreed not to increase supplies in April awaiting more substantial recovery in demand.
Petroleum minister Dharmendra Pradhan had in the run-up to Thursday's Opec meeting urged the group to ease production curbs to fulfil their promise of stable oil prices.
Responding to a question on India's pleas, Saudi energy minister Prince Abdulaziz bin Salman said New Delhi should take some of the crude out of storage that they had purchased "very cheaply last year."
05 Mar 2021, 02:26:15 PM IST
UltraTech crosses ₹2 trillion m-cap; stock hits record high
Aditya Birla Group's cement subsidiary UltraTech Cement on Friday, crossed the ₹2-trillion market valuation on the BSE after the stock rallied 14% in the current week, recovering demand and reports of price hikes in the company's key markets.
At 01:50 pm, UltraTech was trading at ₹6,791 up 0.21% from its previous close. Intraday, the stock was trading at a record high of ₹6,945.70 on BSE, up 2.50% with a market cap of ₹2.01 trillion.
UltraTech Cement is the first cement company to join the elite group of companies. In the past six months, the stock has outperformed the market by 76% against a rise of 31% in the benchmark index, Sensex.
Waa Solar Ltd's board clears proposal for bonus share issue
The company's board of directors cleared a proposal to issue bonus shares in the ratio of 1:1.
The board approved the issuance of one bonus equity share of ₹10 for every one share of ₹10 held as on the yet to be decided record date, the company said in a regulatory filing. This proposal is subject to shareholders' approval, according to the company.
05 Mar 2021, 02:07:19 PM IST
ICICI Bank, HDFC twins, Infosys lead drag
05 Mar 2021, 01:57:34 PM IST
Nifty sectoral indices in red, PSU banks down 3.65%
05 Mar 2021, 01:37:57 PM IST
Bitcoin dips as bond yields climb
Bitcoin fell for a second day amid concerns that a jump in bond yields is sapping demand for riskier investments.
The largest cryptocurrency shed as much as 3.4% on Friday and was trading at about $47,000 as of 1:05 pm in Hong Kong. The Bloomberg Galaxy Crypto Index, which includes Bitcoin and four other tokens, slipped more than 3%.
Bitcoin is now some $10,000 below February’s record above $58,000, stoking the debate over whether the token’s investment base will widen or peter out as happened in the 2017 boom and bust. Overall risk appetite in markets took a knock after Federal Reserve Chair Jerome Powell refrained from pushing back against the recent climb in long-term borrowing costs. (Bloomberg)
05 Mar 2021, 01:25:14 PM IST
Blackstone in talks to buy minority stake in Sify
Blackstone Group Inc. is in exclusive talks to acquire a minority stake in Sify Technologies Ltd, according to people with knowledge of the matter.
The communications infrastructure firm has sought a valuation of around $1 billion to $1.2 billion in a transaction, said the people, who asked not to be identified because the talks are private. It’s unclear what valuation the Blackstone stake purchase will be struck at and talks could still fall apart.
Sify’s American depositary receipts slid 12.3% in the US on Thursday amid a selloff in tech stocks, giving the company a market value of about $484 million.
Representatives for Blackstone and Sify declined to comment. (Bloomberg)
05 Mar 2021, 01:17:52 PM IST
Tech Mahindra partners with ThoughtSpot to offer AI-driven analytics
Tech Mahindra Ltd has partnered with ThoughtSpot, provider of search and artificial intelligence (AI)-driven analytics, to offer real-time analytics for enterprises globally.
“The partnership will enable enterprises to instantly analyze data through with the same ease as using a consumer app, unearth meaningful insights, and drive business actions," Tech Mahindra said in a statement.
As part of the partnership, Tech Mahindra will integrate ThoughtSpot’s search and AI-driven analytics platform with its Virtual Analyst platform to drive multi-level data analysis and empower users with real-time insights to make informed business decisions.
Indian Bank was trading 0.96% lower at ₹ 138.55 a piece at 1;03 pm. The bank had earlier reported that its ’s board of directors will meet on 9 March to consider the modes/modalities of raising the lender’s equity capital within the overall limit of ₹24,000 crore (including premium).
BSE Investments, a wholly-owned subsidiary of BSE, on Friday said it has entered into a joint venture agreement with Frontier Agriculture Platforms Pvt. Ltd (FAPL) to drive innovation in agriculture markets.
The objective of this joint venture (JV) is to explore scope and opportunities available in the agricultural commodities trading space, driven by a strong impetus given by the government to bring in transparency and efficiency in this space.
As part of this joint venture, FAPL would pick 40% equity stake in BSE E-Agricultural Markets Ltd (BEAM), the exchange said in a statement. (PTI)
05 Mar 2021, 12:04:01 PM IST
Two-wheeler sales in India to grow by 6-8% in the next 5 years
Despite the recent contraction in demand, domestic demand for two-wheelers is likely to grow in the range of 6-8% over the next five years as the economy comes out of the Covid-19 induced economic lockdown, said analysts. As the unlocking of the economy began since May, demand for two-wheelers especially of entry level motorcycles started to rise as customers started purchasing vehicles to avoid public transports. The trend was more evident in the rural areas where impact of Covid-19 was limited.
From September though, demand started to decline when public transport resumed in rural and semi-urban areas. “The underlying demand drivers for two-wheelers are still intact. We expect two-wheeler demand to return to 6-8% CAGR over the next five years," said analysts of Motilal Oswal Institutional Equities in a note.
05 Mar 2021, 11:50:57 AM IST
Kotak Mahindra Bank gains
The lender was trading 0.48% higher at ₹1906.65. The bank sold 1,09,48,925 shares of ₹10 each (equivalent to a 10% stake) of ECA Trading Services Ltd (ECA) (erstwhile Ace Derivatives and Commodity Exchange Ltd) to its wholly owned unit Kotak Securities Ltd, at a consideration of ₹1.98 crore. The bank continues to hold a 20% stake in ECA, it said in a regulatory filing.
Private sector lender ICICI Bank on Friday said it has lowered its interest rate on home loans up to ₹75 lakh to 6.7%, its lowest in 10 years.
The revised rate, the bank said, will be applicable from Friday to 31 March. For loans above ₹75 lakh, interest rates begin at 6.75%. These revised rates will be available till March 31, 2021. ICICI Bank’s move comes days after other lenders like State Bank of India (SBI), Kotak Mahindra Bank and Housing Development Finance Corporation (HDFC Ltd) lowered their home loan rates.
Rising crude prices keep ONGC, OIL India in the spotlight
The Organization of the Petroleum Exporting Countries' decision to keep oil production under check has surprised many. Looking at the tight global demand-supply of crude oil that has led to steep rise in global oil prices, the expectations had been building of Opec now easing on production cuts. The firm crude prices bode well for Indian upstream companies such as ONGC Ltd and Oil India Ltd. Oil India had already seen crude oil realisation improve to $42.8/barrel in Q3FY21 up 3 % sequentially. ONGC had seen crude oil realisation 44.2/barrels up 2.5 % sequentially. ONGC saw its stock price gains of almost 5% in morning trades on Friday. Even Oil India saw gains of more than 3%.
05 Mar 2021, 11:10:20 AM IST
Shilpa Medicare gets tentative approval from USFDA from Apremilast
Shilpa Medicare Ltd has received the US Food and Drug Administration's tentative approval for its ANDA, Apremilast tablets of 10 mg, 20 mg, and 30 mg, it said in a regulatory filing. Apremilast is a generic equivalent of reference listed drug OTEZLA of Celgene used in the treatment of 'psoriatic arthritis' as recommended in the label approved by FDA.
PNB Housing, YES Bank tie up to co-originate retail housing loans
PNB Housing Finance and YES Bank entered into a co‐lending agreement, the companies said on Friday in a regulatory filing. The lenders will offer retail loans to homebuyers. PNB Housing and YES Bank will conduct joint due diligence and co‐originate the loan at an agreed ratio. PNB Housing will service the customers through the entire loan lifecycle, including sourcing, documentation
and collection with an appropriate information sharing arrangement with YES Bank, it said.
The Indian rupee slumped 16 paise to 72.99 against the US dollar in opening trade on Friday, as a rebound in the US dollar and muted opening in domestic equities weighed on investor sentiment.
At the interbank forex market, the domestic unit opened at 72.98 against the US dollar, then fell further to 72.99 against the American currency, registering a fall of 16 paise over its previous close.
On Thursday, the rupee had settled at 72.83 against the American currency. (PTI)
05 Mar 2021, 10:26:32 AM IST
Indiabulls Housing Finance trades lower
Indiabulls Housing Finance, which raised $150 million ( 1,091 crore) by issuing foreign currency convertible bonds on Thursday, was trading at ₹239.90, down 1.44%, at 10:25 am.
The agrochemical company listed on the Sensex at ₹900 or at a premium of nearly 45%. Heranba Industries' IPO was open between February 23 and February 25, and was subscribed over 80 times.
05 Mar 2021, 09:59:09 AM IST
Gold prices down ₹12,000 from record highs
Gold suffered further losses today amid weak global cues. On MCX, gold futures were down 0.3% to ₹44,400 per 10 gram in its eighth day of decline in past nine sessions that has taken prices to more than 10-month lows. Silver futures were down 0.6% to ₹65,523 per kg. In global markets, gold continued its downward trend with prices declining 0.2% to $1,693.79 per ounce.
05 Mar 2021, 09:44:35 AM IST
Wipro trades lower
Wipro Ltd was trading at ₹429.50 per share, down 2.13%, at 9:44 am on Friday. The company on Thursday said it has agreed to buy British consulting firm Capco for $1.45 billion in cash, in the company’s biggest bet since it was founded.
The Sensex was down 0.65%, or 328.72 points at markets opening to 50,517.36 as the Nifty opened 0.68%, or 102.80 points lower at 14,977.95. ONGC, Power Grid, Infosys, Tech Mahindra and Sun Pharma were the only stocks in green at market opening on the 30-share gauge at 9:15 am. A weaker opening was seen in Asian markets owing to rise in bond yields.
05 Mar 2021, 09:12:49 AM IST
The Sensex was at 50,513.94, down 0.65% or 332.14 points at pre-opening. Meanwhile, the Nifty was down 1.08% or 164.85 points at preopening to 15,080.75. Fed Reserve chair Jerome Powell's statement in which he did not indicate whether the central bank will intervene in markets if inflation rises, set off rise in bond yields and selloffs.
05 Mar 2021, 08:57:44 AM IST
Markets closing on Thursday
On Thursday, the BSE Sensex ended at 50,846.08, down 598.57 points or 1.16%. The Nifty closed at 15,080.75, down 164.85 points or 1.08%. The benchmark equity indices lost gains from previous three trading sessions owing to uncertainty in global markets over inflation and consequent rise in bond yields. Metals, bank and financial stocks proved a drag.
05 Mar 2021, 08:50:16 AM IST
Dilip Buildcon receives new orders
The company has received letter of acceptance (LOA) for two new hybrid annuity model (HAM) projects from NHAI. The company secured the 'Bangalore Chennai Expressway under Bharatmala Pariyojna in the state of Karnataka, Phase -I (Package- I & II) worth ₹2,439 crore.
Rangoli Tradecomm Ltd said it will raise around ₹45.15 crore via initial public offering (IPO). The issue will open on 9 March and close on 12 March.
The floor price for the issue has fixed at ₹207 a share.
The company will issue 2.18 million shares of which 0.11 million at ₹207 aggregating to ₹2.32 crore will be reserved for market maker. Remaining 2.07 million worth ₹42.84 crore will be referred as net issue, the DRHP said.
The net proceeds from the issue will be used for meeting working capital requirements and general corporate purpose.
05 Mar 2021, 08:19:42 AM IST
Stocks to Watch
Watch out for Asian Paints, Wipro, Brookfield Reit, Indiabulls Housing. Wipro Ltd said it has agreed to buy British consulting firm Capco for $1.45 billion in cash, in the company’s biggest bet since it was founded. For more read here.
05 Mar 2021, 08:07:54 AM IST
Heranba Industries to be listed today
The equity shares of Heranba Industries Ltd will be listed and admitted to dealings on the Sensex in the list of 'B' group securities. The agrochemical company's IPO was open between February 23 and February 25, and was subscribed over 80 times.
05 Mar 2021, 08:00:13 AM IST
Oil extends gains on Opec+ supply restraint
Oil prices rose early on Friday, adding to big gains overnight after Opec and its allies agreed to not increase supply in April as they await a more solid recovery in demand from the coronavirus pandemic.
US West Texas Intermediate (WTI) crude futures climbed 17 cents, or 0.3%, to $64.00 at 01:28 GMT, holding below a 13-month high hit on Thursday.
Brent crude rose 10 cents, or 0.2%, to $66.84 a barrel, but down from a high of $67.75 hit on Thursday. (Reuters)
05 Mar 2021, 07:51:00 AM IST
Asian stocks drop as treasuries hold losses
Asian stocks followed US peers lower after Federal Reserve Chairman Jerome Powell refrained from pushing back against the recent surge in bond yields. Treasuries held a decline. Equities slid from Japan and South Korea to China, which set an economic growth target of more than 6% for 2021 at the National People’s Congress. In Australia, bond yields pushed higher, tracking a jump in the 10-year Treasury to 1.56% that lifted the yield curve to its steepest point since 2015. The U.S. dollar strengthened against nearly all major peers.
SGX Nifty was down 0.73% to 14,917.50.
S&P 500 futures dropped 0.7%. The gauge retreated 1.3% on Thursday.
Japan’s Topix index slid 1.2%.
South Korea’s Kospi index fell 1.8%.
Australia’s S&P/ASX 200 declined 1.4%.
Hong Kong’s Hang Seng shed 2.4%.
Shanghai Composite lost 1.2%.
05 Mar 2021, 07:34:15 AM IST
Wall Street slumps on Fed remarks
Wall Street slumped and global stock markets declined after US Federal Reserve Chair Jerome Powell repeated his pledge to keep credit flowing until Americans are back to work, rebutting investors who have openly doubted he can stick to that promise once the pandemic passes.
Benchmark US Treasury yields rose toward last week's highs as Powell spoke, and the dollar hit a three-month high.
The Dow Jones Industrial Average fell 345.95 points, or 1.11%, to 30,924.14, the S&P 500 lost 51.25 points, or 1.34%, to 3,768.47 and the Nasdaq Composite dropped 274.28 points, or 2.11%, to 12,723.47.
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