Sensex rallies 1030 points, Nifty ends near 15k; banks, financials shine10 min read . Updated: 24 Feb 2021, 05:20 PM IST Ishaan Mital
- Market closing: The Nifty bounced back on Wednesday from a technical glitch, which put trading on hold, to rise 1.86% or 274.20 points to 14,982.00. The Sensex climbed 1030.28 points or 2.07% to close at 50,781.69.
Emerging market shares slid to three-week lows on Wednesday, led by 3% drop in Hong Kong shares, while US equity futures edged higher and Treasuries dropped as investors took confidence from the Federal Reserve’s vow to support economic growth. Treasury yields steady Wednesday as investors balanced the risk of a stronger recovery driving global rates higher against the Federal Reserve’s pledge of continued policy support.
The Nifty bounced back on Wednesday from a technical glitch, which put trading on hold, to rise 1.86% or 274.20 points to 14,982.00. The Sensex climbed 1030.28 points or 2.07% to close at 50,781.69. The lifting of a government business embargo to private lenders drove a rally led by Axis Bank, ICICI Bank and the HDFC twins. Meanwhile, TCS, Power GRID and Dr Reddy's ended in the red with four others. The companies in the 30-share gauge closed in the red.
Nifty bank rises 1,257 points after embargo on govt grants to pvt banks is lifted
The Nifty Bank index rose 1,257.30 points or 3.58% to 36,374.25 after finance minister Nirmala Sitharaman announced that the, "Embargo lifted on grant of Govt business to private banks. All banks can now participate. Private banks can now be equal partners in development of the Indian economy, furthering Govt's social sector initiatives, and enhancing customer convenience."
India's economic recovery to reduce bank stress, says S&P
An improvement in India's macroeconomic conditions is likely to alleviate stress for the country's banking sector, S&P Global Ratings said on Wednesday.
The government's strong efforts to shield banks from Covid-19 pandemic have been largely successful. However, a hit from the pandemic is inevitable, said S&P in the report titled 'Banking Industry Country Risk Assessment: India'.
"We estimate the banking system's weak loans are at 12 per cent of gross loans. Credit costs should improve to 2.2% of total loans in the fiscal year ended March 31, 2022 from our estimate of 2.7% for fiscal 2021," S&P said.
Extended session pre-opening
Indian stocks traded higher on Wednesday. At 3:45 pm Nifty advanced 56.40 points or 0.38 % to 14,764.20. NSE had earlier closed F&O market and cash market due to a glitch with the index price feed.
Sebi exempts Pantone from takeover norms in Tata Comm acquisition
Markets regulator Sebi has granted exemption to Pantone Finvest Ltd from complying with certain requirements of takeover norms with respect to the proposed direct acquisition in Tata Communications.The exemption granted is subject to certain conditions and is limited to the requirements of making an open offer and pricing condition under the Substantial Acquisition of Shares and Takeovers (SAST) Regulations. The order came after Pantone filed an application with Sebi seeking exemption from the applicability of certain provisions of SAST norms. Tata Communications has a public shareholding of 25.01% and non-public shareholding of 74.99% which is entirely held by the promoters and the promoter group.
SC to hear Airtel, Vi’s plea over AGR recalculation in two weeks
The Supreme Court on Wednesday said it will hear Bharti Airtel Ltd and Vodafone Idea Ltd’s plea seeking recalculation of adjusted gross revenue (AGR) dues in two weeks.
In January, Airtel and Vi had moved the apex court seeking directions for the department of telecommunications (DoT) to recalculate AGR dues to be paid by them. In their pleas, they had cited “mathematical errors" on the part of the government.
“The court will take up the matter in two weeks but the date of the hearing is not known," said a person aware of the court proceedings, requesting anonymity.
The petitions could prolong the 14-year legal battle between DoT and telecom operators, which was ended by the apex court in October 2019 when it passed a judgment in favour of the government. Following this, telcos and DoT sought 20 years to make annual payments of the dues, but the SC in September 2020 allowed 10 years for staggered payment.
IIFL board approves issuing of NCDs worth ₹100 cr
IIFL Finance said its finance committee of the board of directors vide resolution dated 24 February approved allotment of 1,000 non-convertible debentures(NCDs) worth Rs100 crore, on a private placement basis.
RBI governor voices ‘Major Concerns’ about cryptocurrencies
The Reserve Bank of India is concerned that cryptocurrencies may impact financial stability in Asia’s third-largest economy, a view that could shape looming regulations on the asset that is breaking price-records around the world. RBI has conveyed these “major concerns" to the government, Governor Shaktikanta Das said in an interview. The Centre is proposing to prohibit all private cryptocurrencies in the country and create a framework for an official digital currency.
HDFC Ltd to allot 11 ,05,631 equity shares pursuant to exercise of stock options under Employees Stock Option Schemes
HDFC Ltd's allotment committee approved allotment of 11 ,05,631 equity shares of ₹2 each under distinctive numbers pursuant to exercise of stock options by certain directors and employees of the Corporation.Post allotment, the paid-up share capital of HDFC is ₹360,60,76,060 consisting of 180,30,38,030 equity shares.
Dilip Buildcon Ltd declared as L-1 bidder for NHAI projects worth ₹2,439 cr
Dilip Buildcon Ltd was declared as L-1 bidder for the tenders floated by the National Highways Authority of India on Hybrid Annuiry basis in the state of Karnataka under Bharatmala Pariyojna.
BSE Telecom sees marginal growth
The telecom regulator may consider lowering the minimum price for 5G spectrum if the government directs it to do so because of concerns that the pricing set for the airwaves could hurt the rollout of the latest wireless technology.
Sensex back above 50k in afternoon trade as banking and finance shares rise
Indian benchmark equity indices Sensex and Nifty opened marginally higher, guided by their Asian peers, as 26 of the 30 Sensex shares opened in green. As the NSE tried to hold on to the 14,700 level, it had to halt F&O and money trading due to glitches in its feed.Led by SBI, HDFC Bank and Bajaj Finance, the Sensex was at 50,017.28 at 12:42 pm. Dr Reddy, SunPharma, Unilever and TCS were among the 10 laggards in the 30 share index.
Issues at telecom service providers' end hit Nifty: spokesperson
"NSE has multiple telecom links with two service providers to ensure redundancy and we have received communication from both the telecom service providers that there are issues with their links due to which there is an impact on NSE system. We are working on restoring the systems as soon as possible. In view of the above all the segments have been closed at 11.40 and will be restored as soon as issue is resolved."
Bharti Airtel gains amid Airtel Ads announcement
Bharti Airtel has entered the advertising business with the launch of Airtel Ads. —a powerful brand engagement solution. During the beta phase, Airtel Ads delivered successful campaigns for over 100 brands across multiple
categories- FMCG, BFSI, Digital Startups, etc. Early advertisers include PepsiCo, zomato, CRED, Tata AIG, Lenskart, Apollo 247, Cars24, Gameskraft, Vahan, Harley Davidson.
NSE closes F&O and cash market owing to data glitches
Index price feed for NSE indices across brokers has frozen due to an unknown reason. NSE has closed F&O market at 11:40 am and the cash market at 11:43 am. NSE says that the update for the re-opening will be shared later.
Coal India's stock rises
Coal India Ltd's board of directors is scheduled to meet on March 5, 2021 to consider and approve payment of second interim dividend for 2020-21. The company has fixed March 16, 2021 as the record date for the payment of dividend, if declared by the board.
Tata Consumer Products secures a spot in Nifty50; shares hit new 52-week high
Shares of Tata Consumer Products Ltd hit a new 52-week high on Wednesday on National Stock Exchange (NSE) in early deals. According to a statement by NSE, the Tata Consumer stock will be included in the Nifty 50 index and will replace those of GAIL (India) Ltd from 31 March. From a near-term perspective, this is sentimentally positive for the Tata Consumer stock. “Stocks generally rally on this news. Additionally, there is also buying compulsion for Nifty ETF when a stock enters Nifty and this supports the positive momentum," said an analyst requesting anonymity. (Full report)
Shriram Transport Finance Co. notifies meeting to discuss fundraise
Non-bank lender Shriram Transport Finance Co. Ltd said its mutiple commmittees will meet to consider and approve the
issue and allotment of redeemable non-convertible debt securities in onshore/offshore market by private placement basis and/or public
issue subject to market conditions during the month ending March 31, 2021.
Dilip Buildcon restricts securities trading at unit
Dilip Buildcon Ltd said its wholly owned subsidiary Dodaballapur Hoskote Highways Pvt. Ltd has received the appointed date letter from the National Highways Authority of India and had declared the appointed effective 22 February. The trading window for dealing in the securities shall remain closed till 26 February.
UPL Ltd's stock dips
Agrochemical maker UPL Ltd said the fire that broke out at its plant in Gujarat had killed two and injured 26. Five workers were still missing. The fire may have been caused due to an electric short circuit, it said in a regulatory filing after market hours.
'The index (NSE Nifty 50) is trying hard to hold on to the 14,700 level. If we manage to keep below it, the Nifty could slide down to 14,500 and thereafter 14,300. On the upside there is a resistance patch at 15,000-15,100 and until that is not crossed, we remain bearish in the short term time frame.'
-Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Sanofi AGM on April 27
Pharma company Sanofi India Ltd's register of members and share transfer books will remain closed during 21- 27 April 2021 for payment of final and special dividend as well as its annual general meeting (AGM) slated for 27 April, according to a company filing. The final dividend and the special dividend, if approved by the shareholders will be paid on or after 4 May.
Stove Kraft's Q3 revenues rise 21% yoy
Kitchen appliance maker Stove Kraft Ltd, announced its unaudited financial results for the quarter and nine months ended 31 December 2020.
Tata Consumer Products stock gains
The Tata Group company will be included in the benchmark Nifty 50 index, with effect from 31 March, 2021, the National Stock Exchange (NSE) said. The company had reported a 25.26% rise in consolidated net profit to ₹237.03 crore for the third quarter ended December 2020, on the back of higher sales in branded business.
Most sectoral indices in the green, Nifty IT under pressure
Indian benchmark equity indices opened marginally higher on Wednesday led by gains in Power Grid, Bajaj Finance and Axis Bank. Sensex opened at 49,763.94, up 2.53 points or 0.03%, while Nifty climbed 32.10 points or 0.22% to 14,707.80.
Power Grid, rising nearly 6%, was the top Sensex gainer followed by ONGC, Bajaj Finance and HCL Tech. Meanwhile, HDFC, Tech Mahindra, Infosys and Maruti Suzuki were among the laggards. Of 30 Sensex shares, 26 opened in the green.
Indian stocks traded higher on Wednesday in the pre-opening session. At 9:05am Sensex was at 49,895.50, up 144.09 points or 0.29%, while Nifty was at14,707.80 up 32.10 or 0.22%.
Oil slips after US crude stocks rise
Oil prices fell in early trade on Wednesday after industry data showed US crude inventories unexpectedly rose last week as a deep freeze in the southern states curbed demand from refineries that were forced to shut.
Crude stockpiles rose by 1 million barrels in the week to Feb. 19, the American Petroleum Institute (API) reported on Tuesday, against estimates for a draw of 5.2 million barrels in a Reuters poll.
API data showed refinery crude runs fell by 2.2 million bpd.
U.S. West Texas Intermediate (WTI) crude futures were down 55 cents or 0.9% at $61.12 a barrel at 0136 GMT, after slipping 3 cents on Tuesday.
Brent crude futures fell 38 cents, or 0.6%, to $64.99 a barrel, erasing Tuesday's 13 cents gain.
Markets at close on Tuesday
Markets found firmer ground on Tuesday after five days of heavy losses as investors made a cautious return to select energy, banking and infra counters amid mixed global cues.
After gyrating 667.46 points during the day, the 30-share BSE Sensex ended just 7.09 points or 0.01% higher at 49,751.41.
On similar lines, the broader NSE Nifty settled 32.10 points or 0.22% up at 14,707.80.
ONGC topped the Sensex gainers' chart, climbing 5.55%, followed by IndusInd Bank, L&T, UltraTech Cement, SBI, NTPC and Titan.
Asian markets mixed
Asian markets were mixed in the early trade on Tuesday and Treasury yields were steady as investors balanced the risk of a stronger recovery driving global rates higher against the Federal Reserve’s pledge of continued policy support.
Japan's Nikkei 225 declined 0.46%.
South Korea's KOSPI added 0.3%.
Singapore's SGX Nifty climbed 0.6%.
Australia's ASX200 dropped 0.6%, while Hong Kong's Hang Seng advanced 0.23%.
Wall Street ends lower
Wall Street retreated on Tuesday as investors shifted away from mega-cap growth stocks, but the sell-off eased following reassurances from U.S. Federal Reserve Chairman Jerome Powell.
The Dow Jones Industrial Average fell 67.55 points, or 0.21%, to 31,454.14, the S&P 500 lost 15.81 points, or 0.41%, to 3,860.69 and the Nasdaq Composite dropped 199.48 points, or 1.47%, to 13,333.57.