Sensex, Nifty Highlights on February 3: Market indices closed at record highs on Wednesday's after touching lifetime highs in early session in line with positive global equities. Extending gains for third session after Union Budget 2021, Sensex ended 458 points higher at 50,225 and Nifty gained 142 points to 14,789. Sensex and Nifty hit lifetime highs of 50,526 and 14,868 during today's session. Sensex and Nifty earlier had hit fresh record highs of 50,184 and 14,753, on January 21. IndusInd Bank, followed by Dr Reddy's, PowerGrid, Tech Mahindra, M&M, Sun Pharma and Axis Bank were among the top gainers. On the other hand, Maruti, Kotak Bank, SBI and UltraTech Cement were among the losers. Meanwhile, December quarterly earnings announcements by Bharti Airtel, Adani Enterprises, Adani Green, Jubilant FoodWorks, Ramco Cement, Apollo Tyre, City Union Bank, will also set the tone for the stock market today. Yesterday, Sensex ended 1,197 points higher at 49,797 and Nifty gained 366 points to 14,647. After Budget 2021-2022, macro data, ongoing corporate earnings season and global market performance will impact stock market movement this week.
Here's a look at the updates of the market action on BSE and NSE today
3. 53 PM: Closing session on Wednesday
Market indices closed at record highs on Wednesday's after touching lifetime highs in early session in line with positive global equities. Extending gains for third session after Union Budget 2021, Sensex ended 458 points higher at 50,225 and Nifty gained 142 points to 14,789. Sensex and Nifty hit lifetime highs of 50,526 and 14,868 during today's session.
3. 50 PM: Market closing outlook
On markets closing --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said," We have been successful in getting past 14753.55 which was the previous high recorded by the Nifty. We should now target 15000-15100 and given the strong bullish tone, we could achieve this during the course of the February series. While we have good support at 14200-14300, a buy on dips strategy would be most appropriate."
3. 46 PM: Nifty technical outlook
Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited said," The market witnessed to extend the gain further after the decisive breakout of the Nifty 50 Index level of 14750. the market is likely to hold the momentum and reaches the level of 14950-15000. The level of 14730-14750 act as a support zone from the short-term perspective. the momentum indicators like RSI, MACD to stay positive supporting our view that the upside movement is likely to continue. "
3. 33 PM: Sun Pharma share price climbs to new 52-week high
Share price of Sun Pharma gained over 3% in Wednesday's opening trade to touch a new 52-week high of Rs 648.30, amid a broader jump in pharma index today.
Sun Pharma share price opened at Rs 614.45 and gained 6.38% to the intraday high as well as new 52-week high of Rs 648.3, as against the last closing value of Rs 609.40 on BSE. Sun Pharma share has risen 12% in the last 4 days of gains.
Market capitalisation of the firm stood at Rs 1,50,986.42 crore as of today's session. Sun Pharma share is trading higher than its 5, 20, 50, 100 and 200 day moving averages.
3. 30 PM: Rupee ends flat
Rupee settles on flat note, up 1 paisa to 72.95 (provisional) against US dollar.
3. 24 PM: Can Fin Homes outlook
Geojit Financial Services Ltd. said,"Net Interest Income (NII) reported a growth of 12% on a YoY basis. Net Interest Margin improved by 0.54bps driven by lower cost of funds despite lower yields. Loan book grew to Rs 21,004cr in Q3FY21 registering a growth of 4% YoY and 0.83% QoQ. Disbursement grew 34% on QoQ basis . PAT improved 45% YoY driven by lower provision and operating expenses. GNPA/NNPA improved to 0.68%/0.41% from 0.80%/0.59% in Q3 FY20. Expect loan and disbursement growth to be back to pre-Covid levels from Q4FY21. We reiterate our Buy rating on the stock with a rolled forward target price of Rs.596 based on 2.3x FY23E Adj BVPS."
3. 13 PM: Top gainers and losers
IndusInd Bank, followed by Dr Reddy's, PowerGrid, Tech Mahindra, M&M, Sun Pharma and Axis Bank were among the top gainers. On the other hand, Maruti, Kotak Bank, SBI and UltraTech Cement were among the losers
3.08 PM: India's January merchandise exports rises 5.3%
India's January merchandise exports rose over 5.37 per cent on a YoY basis. The country's merchandise exports during the month under review grew to $27.24 billion from $25.85 billion in January 2020. As per the data, in January 2021, the value of non-petroleum exports rose by 11.37 per cent over January 2020 to $25.24 billion.
2. 56 PM: Gold and silver outlook
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking said," Yesterday Gold prices corrected sharply by 1.84% and closed at47825 levels, Silver also corrected sharply by 8.31% and closed at 67,541 levels. Strength in Dollar and increased margins by Comex in Silver pressurize the gold and silver prices. However the expectation of Stimulus package for US economy may provide support to Gold and Silver prices.
As of today Traders can go for buy in Gold at 47500 levels with the stop loss of 47200 levels for the target of 48300 levels. They can also for buy in Silver at 67800 levels with the stop loss of 66800 levels for the target of 69500 levels. In international market gold may test $1900 levels soon."
2. 42 PM: HDFC Bank outlook- book profit
Reliance Research said in its note,"The stock bounced after testing its 38.2% Fibonacci Retracement level of prior up-move (Rs1,177.5- Rs1,464.4), which was placed at around Rs1,350 level and recorded new high of Rs1,579.
Major technical indicators on the near-term timeframe chart tested their overbought zone and may reverse down.
Hence, its advised to book profit at current juncture at Rs1,564.8 and close the long trade."
2. 34 PM: Ajanta Pharma outlook
Yash Gupta Equity Research Associate, Angel Broking said," Ajanta Pharma reported numbers better than the expectation, stock up by 5%. Ajanta Pharma limited total revenue from operations for Q3FY21 stood at ?749 crores up by 15% YoY from Rs 651 crores in Q3FY20. EBITDA for Q3FY21 stood at Rs 242 crores up by 30% as compared to Rs 186 crores in Q3FY20. Profit before tax for the quarter at Rs crores in Q3FY21 as compared to loss of Rs 527.4 crores in Q3FY20. Profit after tax for the quarter up by 64% at Rs 177 crores in Q3FY21 as compared to Rs 108 crores in Q3FY20. Indian business has done very well for the company, reported revenue growth of 13%, while USA generic business up by 1% only. Company reported EBITDA margins at 32% which are better than expectations. We have a positive outlook towards Ajanta Pharma limited."
2. 20 PM: Ujjivan Small Finance Bank Q3FY21 result preview
HDFC Securities said in its note today,"Net interest income is expected to increase by 11.8% YoY to Rs 480 crore. The bank is likely to report a 53% YoY growth in pre-provisioning operating profit to Rs 220cr. However higher provisioning would result in 21.5% decline in PAT to Rs 70 crore."
2.01 PM : Market outlook
On markets --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"14750-14760 needs to be crossed for the Nifty to propel further north. Once we get past this, the next level should be 15000. The index has a good support at 14200-14400 range. Keeping a close below this level as a stop, traders can aspire long positions above 14750.
1. 49 PM: YES Bank share trades flat today after 3 days of gain
YES Bank share traded in a narrow range on Wednesday's early trade. YES Bank stock opened at its llast closing price of Rs 16.60 on BSE today. The stock also touched a day's high of Rs 16.65 and a low of Rs 16.25 during today's session.
The stock has fallen after 3 days of consecutive gain. YES Bank stock has gained 1% higher yesterday.
YES Bank stock trades higher than 5 and 100-day moving averages but lower than 20, 50 and 200-day moving averages.
1. 34 PM: Market hits new high
Extending gains for third session after Union Budget 2021, Sensex was trading 695 points higher at 50,478 and Nifty gained 215 points to 14,860. Sensex and Nifty hit lifetime highs of 50,526 and 14,868 during today's session.
1. 29 PM: SBI Retirement Benefit Fund NFO closes today
The solution-oriented retirement linked MF-SBI Retirement Benefit Fund New Fund Offer (NFO) is closing today on February 3, 2021.
The minimum initial investment for the scheme is Rs 5,000 and in multiples of Re 1 thereafter. Meanwhile, the minimum additional purchase amount is Rs 1,000 & in multiples of Re 1 thereafter.
The fund offers four plans- aggressive, aggressive hybrid, conservative hybrid and conservative, where investor's money will be primarily invested in equity and equity-related instruments and also in debt and money market securities.
1. 13PM: Bharti Airtel Q3FY21 result preview
HDFC Seurities said in its note," Bharti Airtel could report 16.6% YoY growth in revenue to Rs 25600 crore in Q3FY21. Company could report net profit Rs 250 crore in Q3FY21 vs. a net loss of Rs 496 crore in Q3FY20. EBITDA margin could ramp up by 600bps YoY to 44.4%. The management commentary on financing strategies and fundraising plans via instruments like debentures, bonds, and loans, as the telecom sector gears up for spectrum auctions and roll-out of new-age technologies, 5G demos, and strategies for client addition would be key monitorables."
12. 56 PM : Dr Reddy's share rises after Sputnik V shows 91% efficacy in trial results
Dr Reddy's Laboratories share rose over 6% in trade today after Sputnik V, which has already been rolled out in Russia and several other countries, was found to be 91.6% effective against Covid-19 cases in trial results published by The Lancet, a leading medical journal.
The pharma stock touched an intraday high of Rs 4,759.1 rising 6.13% against previous close of Rs 4,484.25 on BSE. The share trades higher than 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages.
The stock has gained 48.49% in one year and fallen 10.33% since the beginning of this year. Market cap of the firm rose to Rs 77,601 crore. The stock has risen 5.01% in the last 2 days.
12. 47 PM: Nifty pharma outlook
Yash Gupta Equity Research Associate, Angel Broking said," Nifty Pharma up by 4.05%, trading at 12822. Nifty pharma consolidated for more than 5 months after it doubled from its March low of 6343. We expect nifty pharma can give a run upto previous highs of 13476. We if look at the results reported by the pharma company all are in line with the expectation and even some are better than the expectations, the USA and the domestic market has done well for Indian companies in Q3FY21 while API growth momentum looks weak this quarter. Some stocks like Ajanta Pharma, Sunpharma Lupin have reported better than the expected numbers in Q3FY21 while Dr.Reddy, Granules, Alembic have reported numbers in line with market expectation. We expect a rally in nifty pharma from 12500 to 13500-14000 in the next couple of months. We have a buy call on Cadila Healthcare with a target of 557."
12. 32 PM: Mid day market outlook
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking said," The budget exuberance is still going on in the market and the global optimism is too providing impetus to the move. This financials led rally is likely to drive SENSEX towards 51000 and Nifty at 15000."
12. 29 PM: Rupee rises by 2 paise to 72.94 per US dollar in early trade
The rupee opened on a flat note and edged higher by 2 paise to 72.94 per dollar on Wednesday's opening trade, amid positive domestic equity market and FII inflows. Traders remained cautious ahead of Reserve Bank of India (RBI) monetary policy outcome to be announced on Friday.
The domestic unit opened flat at 72.96 against the US dollar at the interbank forex market and inched higher to 72.94 against the greenback, rising mere 2 paise over its previous close.
Meanwhile, the dollar index, fell 0.16 per cent to 91.05 against a basket of six currencies.
12. 17 PM:India's services sector PMI reaches 52.8 in January
Growth in India's dominant services sector picked up in January as demand improved and consumer optimism was buoyed by the start of a huge COVID-19 vaccination drive, although firms continued to shed jobs, a private survey showed on Wednesday.
That improved sentiment was in line with findings of a Reuters poll last month that predicted Asia's third-largest economy would recover from the coronavirus crisis more strongly than previously thought, lifted by the government's "wealth and wellness" budget announced on Feb.1. ECILT/IN Nikkei/IHS Markit Services Purchasing Managers' Index rose to 52.8 in January from 52.3 in December, staying above the 50-level mark separating growth from contraction for the fourth straight month.
12.09 PM: Home First Finance share lists at 19% premium to issue price
Shares of mortgage financier Home First Finance listed at a 19% premium to its issue price on Wednesday.
The stock made its market debut at Rs 612.15 against issue price of Rs 518 on BSE amid a Budget-driven bullish market.
The stock hit the day's high at Rs 639.50 on BSE and at Rs 640 on NSE. The share later fell on profit-booking and touched day's low at Rs 565 on BSE and NSE.
The initial public offer of Home First Finance Company India, with a price band of Rs 517 to Rs 518 per equity share was fully subscribed on the first day itself on January 21. The issue was subscribed 26.57 times during the three-day share sale that ended on January 23.
11. 44 AM: Glenmark Pharma outlook and view
Yash Gupta Equity Research Associate, Angel Broking said," Glenmark Pharmaceuticals up by 3% on announcement of positive news of receiving ANDA approval for Topiramate Extended-Release Capsules. Glenmark Pharmaceuticals Limited has received final approval by the United States Food & Drug Administration (U.S.FDA) for Topiramate Extended-Release Capsules, the generic version of Qudexy1 XR Capsules, of Upsher-Smith Laboratories, LLC. According to IQVIATM sales data for the 12 month period ending December 2020, the Qudexy XR Capsules, 25 mg, 50 mg, 100 mg, 150 mg, and 200 mg market achieved annual sales of approximately $120.8 million.
This is a positive development for Glenmark Pharmaceuticals, we expect the launch of this product in the USA market shortly. We have a positive outlook for the stock."
11. 28 AM: Sensex hits all-time high of 50,321, Nifty crosses 14,800
Sensex and Nifty hit their all-time highs in early trade as investors were enthused by a Budget aimed at economic recovery amid Covid -19 crisis. While Sensex rose 524 points to record high of 50,321, Nifty gained 163 points to a fresh high of 14,810.
On Tuesday, Sensex closed 1,197 points higher at 49,797 and Nifty rose 366 points to 14,647. Today's rally was led by gains in heavyweights such as index-heavyweights Reliance, TCS and Infosys.
11. 13 AM: Global markets today
Asian markets are trading higher taking cues from overnight jump in US markets. Chinese services PMI data to be released later in the day.
US markets gained yesterday backed by strong quarterly earnings reported by Amazon and Alphabet. Also expectation is ripe for another round of stimulus in US sooner.
European markets closed higher as investors hope for an economic recovery post pandemic and as retail trading frenzy in stocks like GameStop waned.
11.00 AM: Market update
Sensex and Nifty hit lifetime highs of 50337 and 14,828 during today's session. Sensex and Nifty earlier had hit fresh record highs of 50,184 and 14,753, on January 21
10. 50 AM: This Tata Group stock delivered 400% returns in 10 months
Shares of Tata Motors jumped nearly 19 per cent in intra-day trade to hit record high of Rs 332.40, highest since May 11, 2018, on the Bombay Stock Exchange as investors remained buoyed by scrappage policy announced in Union Budget as well as strong monthly sales. The shares of Tata Group company have soared 422 per cent from its 52-week low of Rs 63.60 as on March 24, 2020, while it gained 29 per cent in the last two sessions.
10. 41 AM: Oscillating market adds 8 lakh investors in 8 trading sessions
Indian equities' back-and-forth movement towards reversing its gains after touching the 50,000 milestone and gaining the momentum back has attracted more investors on Dalal Street. Nearly 8.2 lakh new investors jumped on the bandwagon when the benchmark index Sensex clawed back all the lost ground and reclaimed the 50,000-mark after six sessions. On January 21, Sensex breached 50,000 mark and touched a record high of 50,184.
10. 35 AM: Nifty Outlook
Geojit Financial said in ite note today,"Nifty look poised for 15200, with intermediate objective set at 14890. Meanwhile 14490-14415 looks to be a convenient entry point for such a move, but a fall below 14315, while less expected, should sound warning signs."
10. 20 AM: FII action
Foreign portfolio investors (FPIs) bought shares worth Rs 6,181.56 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2,035.20 crore in the Indian equity market on 2 February, provisional data showed.
10. 10 AM: Global markets trade higher today
Overseas, Asian stocks are trading higher on Wednesday following an overnight surge on Wall Street.
US stocks finished sharply higher for a second straight day on Tuesday, helped by gains in Amazon.com and Google-parent Alphabet ahead of their results and by optimism over progress on a US pandemic relief package. Meanwhile, investors will be following stimulus negotiations in Washington, after congressional Republicans made a counteroffer to President Joe Biden's $1.9 trillion stimulus plan on Sunday.
10.00 AM: Morning view on the market
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said,"The risk-on is back in the market with massive FII inflows of Rs 6181 cr yesterday. There is huge delivery based buying in HDFC Twins, Tata Motors, RIL, ICICI Bank and many other bluechips. The growth-oriented bold budget, with emphasis on privatization,has facilitated this return of risk-on in the market with the Nifty spiking by 7% in 2 days. The fundamental support to the market comes from the surprisingly good results from companies. If the present steadily declining Covid incidence trends continue, the economy will bounce back sharply, supporting the rally."
9. 45 AM: Should Retail investors expect any bumper listing of Brookfield India REIT
Yash Gupta Equity Research Associate, Angel Broking said," Brookfield India to Open IPO on 3rd February 2021 with net issue size of Rs 3800 Cr. Brookfield India coming with the REIT (Real Estate Trust), Brookfield is India's only institutionally managed public commercial real estate vehicle. REIT owns an initial portfolio of 4 large campus format office parks which are located in Mumbai, Gurugram, Noida and Kolkata. Reit has an initial portfolio size of 14.0 Msf, comprising 10.3 Msf of completed area, 0.1 under development and 3.7 Msf of future development. We expect listing gains to be very limited upto 10%-15%. Given the uncertainties, weak financials and high debt on book we would recommend a "Neutral" rating on the issue. Long term investors who want to add REIT in their portfolio can apply for the IPO."
9. 33 AM: Stocks to watch today on February 3
Tata Consumer, V-Mart, Infosys, Future Retail, JSW Energy, Tata Motors among others are the top stocks to watch out for in Wednesday's trading session
9. 20 AM: Earnings today
Bharti Airtel, Adani Enterprises, Adani Green, Jubilant FoodWorks, Ramco Cement, Apollo Tyre, City Union Bank, Thermax, Procter & Gamble, VGuard, Sheela Foam, SIS and Bajaj Corp among others are scheduled to report their quarterly earnings on Wednesday.
9. 15 AM: Market hits record high
Market indices touched new record highs on Wednesday's opening session, amid positive global equities. SGX Nifty on the Singapore Exchange was rising by 90 points, indicating a positive trend in domestic grounds today. Sensex was trading 450 points higher at 50,221 and Nifty gained by 104 points to 14,752.
9. 10 AM: Nifty technical outlook
Reliance Research in its note said," NSE-NIFTY extended gain post a strong start for the month and settled at life-time-closing high. Overall market breadth remained in favour of the bulls and major sectors were positive. Due to further rise in the index, its major technical indicators remained in buy mode. The index has potential to explore uncharted territory and will test 15,000-15,250 levels. In case of decline, the index will find support at around 14,200-level initially and 13,950-level subsequently.
As for the day, support is placed at around 14,501 and then at 14,354 levels, while resistance is observed at 14,763 and then at 14,879 levels. "
9.05 AM: Brookfield India Real Estate Trust IPO Outlook & Valuation
Angel Broking said in its note," Though the REIT has incurred losses in FY20 and has not paid out any dividends, they expect to pay a yield of 7.5% in FY23 which we believe is aggressive and may be difficult to acheive. Post the IPO there will also be a debt reduction of ~ ?3,575 crore for the company which will bring down the overall debt. However due to the current uncertainties around Covid-19 and proliferation of work from home we expect that demand for commercial real estate to be muted. Given the uncertainties, weak financials and high debt on book we would recommend a "Neutral" rating on the issue."
8. 50 AM: Nifty outlook
Ashis Biswas, Head of Research at CapitalVia Global Research said," Strong trends in the market and an attempt to overcome the resistance level around the Nifty 50 Index level of 14750 (high as on 21st Jan 2021). While a breakout above 14750 is the key factor from a short-term perspective, the market is likely to maintain momentum and reaches the level of 14950-15000. The momentum indicators like RSI, MACD to recover from their low made in the last week of January 2021. As such odds of a fresh breakout is significantly high."
8. 45 AM: Closing session on Tuesday
Market indices rose another 2.5% each on Tuesday after a 5% budget driven rally in the previous session, with Sensex back at 50K mark and Nifty breaching 14,700. Extending gains for second session after Union Budget 2021, Sensex ended by 1,197 points to end at 49,797 and Nifty gained by 366 points to 14,647, amid positive global equities.