Share Market Highlights: Sensex ends at record high, Nifty at 14,920 for first time; SBI, ITC top gainers
BusinessToday.In February 5, 2021
Sensex, Nifty LIVE Updates on February 5: Market indices closed at new record highs on Friday, tracking cues from positive global equities that extended rally. Gaining for fifth straight day, Sensex ended 117 points higher to 50,723 while Nifty gained by 28 points to 14,924. Sensex and Nifty hit fresh lifetime highs of 51,073 and 15,014 in early session today. Benchmarks continued trading on a bullish note, after the Monetary Policy Committee (MPC), headed by RBI Governor, decided to keep repo rate unchanged at 4% on February 5. All frontline indices were trading at record highs, with Nifty hitting 15,000, Sensex at 51,000, Nifty Bank at 36,000 and Midcap Index at 23,000. SBI, Kotak Bank, IndusInd Bank, HDFC, ONGC and Axis Bank were top gainers in the Sensex pack. Meanwhile, Q3 earnings announcements by Mahindra & Mahindra, Pfizer, Punjab National Bank, Alkem Laboratories, Aditya Birla Capital, Ashoka Buildcon, Britannia, Cadila Healthcare will also set the tone for the stock market today. The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 1.96% to 23.5775. Yesterday, Sensex ended 358 points higher at 50,614 and Nifty gained 105 points to 14,895.
Here's a look at the LIVE updates of the market action on BSE and NSE today
3. 53 PM: Market closing session
Market indices closed at new record highs on Friday, tracking cues from positive global equities that extended rally. Gaining for fifth straight day, Sensex ended 117 points higher to 50,723 while Nifty gained by 28 points to 14,924. Sensex and Nifty hit fresh lifetime highs of 51,073 and 15,014 in early session today.
3. 48 PM: Outlook on RBI Policy
Dhawal Dalal, CIO-Fixed Income Edelweiss AMC said,"Today's MPC outcome was along the expected lines. The RBI has acknowledged the "growth-oriented" Union Budget and need for running higher fiscal deficits for FY22 and beyond. In that regard, the RBI has assured that the ongoing accommodative monetary policy will continue until the economy recovers fully and inflation remains within the band. The RBI has stated that the burgeoning GOI borrowing for FY22 will be completed in a non-disruptive manner. This is quite reassuring. Bond market participants were concerned with Rs. 23 trillion of gross borrowing in FY22 between the center and states and its impact on bond yields.
He added," While the RBI has decided to unwind 1% CRR cut announced in March 2020 and removing Rs. 1.5 trillion of liquidity, we expect the RBI to use this opportunity to conduct more OMO bond purchases as early as Q1FY22. This will not only infuse liquidity back in the system but also support bond yields. The RBI has revised upward their inflation forecast for H1FY22 despite benign food and vegetable prices. The RBI has acknowledged the recent increase in commodity prices and crude oil. We believe that RBI may be prudent in their stance amid faster-than-expected recovery in the economy and slower-than-expected clearing of supply-side bottlenecks. Based on this, we believe that rate cut cycle may be over. Based on all these, we believe that bond yields may remain volatile and IGB yield curve may remain steeper for some more time. We expect 10Y IGB yields to trade in a range of 6-6.25% in the medium-term."
3. 40 PM: Nifty technical outlook
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities said,"The Nfity-50 & BSE Sensex Index gained more than 9% this week with Sensex breaking the 50,000 market and Nifty-50 close to the 15,000 mark. Market mood has been quite exuberant in the aftermath of the Union Budget along with stronger-than-expected earnings. Banks have further boosted risk on sentiment in the market. Globally earnings season is driving markets which are flirting near their all-time highs. As expected the RBI kept its policy rates unchanged but kept its forward guidance of remaining accommodative to revive growth through liquidity support. Post budget banking sector has come to the forefront in driving up Nifty-50."
He added," We can expect some more future earnings upgrades as we go ahead into the result season. The 34 companies from Nfity-50 that have declared results so far have reported 34% jump in earnings on a yoy basis. This is way ahead of the 20% earnings growth we were forecasting to come from Nifty-50 in Q3FY21earnings season. A combination of positive sentiment, positive FII flows and very healthy earnings could keep markets at elevated levels in the near future."
3. 32PM: Top 20 HNIs park Rs 825 crore in provident fund accounts
Top 20 high-net-worth individuals (HNIs) had kept a staggering Rs 825 crore in their provident fund accounts, government sources said. The interest income earned on Employees' Provident Fund is tax free to help workers' save money, but was being used by HNIs to generate tax-free returns.
In the Union Budget for 2021-22, presented by Finance Minister Nirmala Sitharaman on February 1, the government announced to restrict tax exemption for interest income earned on employees' contribution to various PFs to an annual contribution of Rs 2.5 lakh.
3. 21PM: YES Bank share rises 7%, snaps two-day losing spree
YES Bank share price was trading 7% higher in Friday's volatile session, ranking among the most active banking scrips in terms of volumes on both BSE and NSE.
The stock of private lender opened higher at Rs 16.80 against its previous close of Rs 16.25. The stock gained 7.5% to the day's high at Rs 17.45 and also hit an intraday low of Rs 16.75. It has gained after 2 days of consecutive fall.
3. 12 PM: RBI policy announcement
VP Nandakumar, MD & CEO of Manappuram Finance Limited said," The inclusion of NBFCs in the TLTRO on tap scheme is especially welcome. It will enable NBFCs to significantly step up their lending and expand credit delivery at the last mile."
3. 01 PM: RBI MPC Outlook
Padmaja Chunduru, MD&CEO, Indian Bank said," The key takeways include normalization of CRR in two-phases, reduction in SLR requirement and deferment of implementation of 0.625% of capital conservation buffer. Banks can deduct credit disbursed to new MSME borrowers from NDTL, for CRR calculation. This should give a boost to further lending to MSME sector."
2. 54 PM: Reaction on MPC Announcement
Dr M Govinda Rao, Chief Economic Advisor, Brickwork Ratings said," As expected by BWR, the RBI's MPC maintained the status quo and continued with an accommodative policy stance. The MPC reiterated accommodative liquidity stance to assure the market sentiments. Though there were no major immediate announcements on liquidity reversal, increasing the CRR to 4 percent in phases indicates the beginning of reining in liquidity measures, which were announced during the lockdown period. Growth outlook has improved significantly, but inflationary concerns remain. We expect RBI to continue with its current policy stance for Q1 FY 22 and may gradually start withdrawal of liquidity to rein in surplus liquidity. "
2. 45 PM: RBI MPC outlook
Jimeet Modi, Founder & CEO Samco Group said,"The MPC has once again maintained the status quo by sticking to an accommodative stance on the interest rate front which is inline with expectations, however, there are a couple of major breakthrough decisions which have been taken to supplement a massive Government borrowing program. The RBI has opened its doors for retail investors to directly invest in Government securities online which will place them in direct competition to other banks for attracting retail savings deposits. The inflation estimates are a positive surprise and the expectation that the inflation will be well within the tolerance levels is also cheery for the markets and economy as a whole. Easing liquidity concerns for NBFCs is a welcome step while the normalization of CRR levels by end of this quarter signals that the RBI has given its reassurance that all will be well under control in FY 21-22."
2. 31 PM: Global markets at record highs
Most Asian stocks rose, extending a global rally amid a slew of corporate earnings. Overnight, U.S. stocks finished sharply higher, moving towards new records with investors encouraged by news on the pace of vaccinations in the U.S., the prospect of more fiscal aid from Congress, and a decline in the frenzy of retail trading in heavily shorted stocks.
Meanwhile, the dollar headed for its best weekly gain in three months on Friday, hitting 91.60 for the first time since Dec. 1.
European shares also opened in green today for the firth straight day as investors were hopeful of a swifter global economic recovery amid positivity in terms of better quarterly earnings. Energy shares also helped markets.
2. 23 PM: Should investors apply for Brookfield IPO?
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. Retain investors to first understand the difference between an IPO and a REIT, When an investor invests in REIT it will be the same as buying a commercial property, by investing in a REIT investor get 3 different types of returns such as Interest income, Dividend Income and Market price appreciation.
Brookfield REIT owns an initial portfolio of 4 large campus format office parks which are located in Mumbai, Gurugram, Noida and Kolkata with 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. So retail investors can buy this REIT and hold it for long term such as they have invested in real estate property. Retail investors may get listing gains of 5%-12% on listing day."
2. 12 PM: VIX India today
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 1.96% to 23.5775.The Sensex scaled record high of 51,073.27 while the Nifty hit record high of 15,014.65 level in early trade.The market breadth was negative. On the BSE, 1322 shares rose and 1418 shares fell. A total of 154 shares were unchanged.
2.02 PM: Winners of Budget 2021
Budget 2021 has triggered a record rally in the stock market. From the low of 46,285 on January 29, Sensex has surged 4,788 points or 10.34% to 51,073 in just five sessions. Similarly, Nifty has gained 1,380 points or 10.12% to 15,014 during the period. It closed at 13,634 on January 29. In early trade today, Sensex hit all-time high of 51,073 amid positive global cues. Nifty too scaled an all time high of 15,014 extending the Budget day rally into fifth consecutive session.
1. 47 PM: Alkem Labs Q3 FY21 result preview
HDFC Securities said in its note today," Revenue for the quarter may increase 9.5% yoy at Rs 2389cr. Domestic formulation revenue is expected to grow 10% in Q3 FY21. EBITDA margin may expand 400bps yoy to 24.8%. Company may report 32% yoy increase in net profit at Rs 462cr."
1. 35 PM: RBI Monetary policy outlook
RBI Monetary policy by Mr. Shishir Baijal, Chairman & Managing Director, Knight Frank India said,"The decision to maintain the REPO and reverse REPO rate by the RBI is in line with expectations. While the recent moderation in headline inflation rate has lent comfort, RBI will be cautious of demand side inflation picking up as economic growth momentum picks up. Measures on enhanced bank funding window for NBFCs will also benefit the stressed sectors including real estate.
With a growth focussed budget recently presented by the finance minister, that further supports the government's aim of nurturing the economy, this status quo will further allow demand creation including for high involvement products like real estate. As most global agencies have touted, India is expected to recover faster from the COVID induced slowdown mostly based on the restoration of the domestic consumption-which has greatly benefitted from the benign interest rate regime and infusion of liquidity.
As seen in the past few months, housing markets in the country have responded well to low home loan interest rate. Given the interlinkages of the housing market with other sectors of the economy, we believe that low interest rate for a sufficiently long period of time will help build a strong and broad-based demand momentum in the Indian real estate market."
1. 26 PM: Gujarat Gas Ltd Q3FY21 result preview
HDFC Securities said in its note today," Gujarat Gas is likely to report growth in revenue by 20 per cent YoY to Rs 3000 crore and Company could report net profit of 280 crore, which is up by 42.4 per cent (YoY) in Q3FY21. We expect volumes at 10.4 mmscmd with revival in industrial demand. Non-Morbi industrial volumes and expansion of the CNG network remains a key outlook for volume growth."
1. 13 PM: Apollo Tyres Q3 outlook
JM Financil said in its note today,"Apollo Tyres reported adjusted consol. EBITDAM of 17% (+490bps YoY, +80bps QoQ), 260bps higher than JMFe driven by outperformance across Indian and EU operations. In 3Q, domestic volume increased in both OEM and replacement segments with double-digit YoY growth across most of the product categories. The demand momentum is expected to continue through 4QFY21. We expect 11.7% revenue CAGR over FY20-23E driven by resilient performance in India business and ramp-up of Hungary facility. Higher replacement exposure (75%), PCR capacity expansion and ramp-up of the Hungary plant augurs well for the company. We estimate EPS CAGR of 45% over FY20-23E driven by robust demand momentum and margin sustainability. We ascribe a 14x PE to arrive at Mar 22 TP of INR 320 (Maintain BUY). Key risks to our call are second wave of Covid infection, easing of tyre import restriction, uptick in crude derivative prices and delayed ramp-up of EU operations."
1.08 PM: Global shares reach record highs
Global shares closed in on their record peak on Friday, with Asian shares taking their lead from Wall Street, as progress in vaccine distribution prompted bets on further normalisation in the global economy and earnings recovery. MSCI's gauge of Asian shares outside Japan rose 0.4% while Japan's Nikkei rallied 1%.
An index of the world's major 50 markets, MSCI ACWI, extended its gains into a fifth straight day to come within reach of a record high touched about two weeks ago. On Wall Street, each of major indexes rose more than 1% on Thursday, with the Nasdaq Composite Index and S&P 500 setting record highs.
12. 58 PM: SBI share rises 25% in 2 days
State Bank of India (SBI) shares hit a fresh 52-week high of Rs 408.35 apiece on BSE, clocking a 25% jump in two days after the company announced its December quarter earnings.
After closing at a 10% upper circuit of Rs 355.10 yesterday, the stock of SBI opened with a gain of 8.7% today at Rs 386, its day's low and touched a new 52-week high of Rs 408.35 in the early session, rising 15%.
In the last five sessions, SBI stock has risen 41.78%. SBI stock is trading higher than 5, 20, 50, 100 and 200-day moving averages. The stock has risen 42% in one month and 45% year-to-date.
12. 46 PM: View on Monetary Policy
Suvodeep Rakshit, Vice President & Senior Economist at Kotak Institutional Equities said,"The RBI MPC's decision to keep policy rates unchanged was as expected. Today's upbeat policy statements on growth and inflation restates our view that the rate cut cycle is over. Even as headline inflation trends lower, with economic recovery being underway, services gradually starting to open up, and pricing power coming back in some segments, core inflation will likely see some upside pressure through the year. "
He added," However, we see some downside risk to RBI's inflation estimate for 1HFY22 and this could provide some room for RBI to remain accommodative on liquidity for a bit longer even as the cost of that liquidity will inch higher. While expectations had built up post-Budget for a clearer and more affirmative action from the RBI, the policy has kept the room open for reacting to market conditions. The decision to extend the duration of HTM relaxation and two-phase normalization of CRR will provide room for some support to yields. We continue to expect the RBI to normalize liquidity gradually and short term rates to align higher within the repo-reverse repo corridor through the year. We expect the 10-year yield to range between 6-6.75% over the year with the lower bound possible only with sustained OMO purchases from hereon. We will watch for government's decision on any change in the inflation target."
12. 39 PM : RBI MPC outcome outlook
Dr. Joseph Thomas, Head of Research - Emkay Wealth Management on RBI's MPC announcement: "The basis of the RBI policy remains accommodative, and it is reflected in the status quo with respect to the base rate - the repo rate is unchanged. But there is a strand of rationalization of excess liquidity, as is evident from the phased hike in the CRR for its restoration to 4 % , the pre-pandemic level."
12. 23 PM: Mahindra & Mahindra Q3FY21 result preview
HDFC Securities said in its note today," Revenues are expected to increase 16/11% QoQ/YoY to Rs 13440cr on strong volumes growth of 21/2% QoQ/YoY. This was led by 20% YoY growth in the tractor volumes. EBITDA margin at 16.5% to expand by 175bps YoY (-125bps QoQ). PAT growth of 3/38% QoQ/YoY to Rs 13.5bn. Outlook for demand in tractors Amidst rising competition in the SUV segment, timelines."
12. 15 PM: Monetary Policy announcement outlook
Sanjay Kumar, CEO & MD, Elior India said," The RBI announcement has come on the expected lines, continuing to remain accommodative. However, there is a marginal increase in inflation which at this time of the year would be a cause of concern. What is important to note is while FPI and DI inflows are increased, the manufacturing investments continue to lag and whilst the outlook on growth suggests positive, one may have to carefully watch how credit off-take picks up in the next two quarters. Also, private investments will be critical to drive future economic growth. The two indicators to watch out for in the coming quarters would be household consumption alongside credit off-take from banks. This will determine if there is real demand pick up or if we are still riding the pent up demand."
12.03 PM: Outlook on RBI MPC outcome
Deepthi Mathew, Economist at Geojit Financial Services on RBI's monetary policy said," In the expected line, MPC kept the repo rate unchanged and maintained an accommodative stance. Though the Governor assured of more liquidity measures, an increase in the CRR can be seen as the first step towards the normalization of monetary policy. MPC also cautioned about the rise in inflation that could arise from cost-push pressures and rising petroleum prices."
11. 53 AM: Stove Kraft listing
Keshav Lahoti-Associate Equity Analyst, Angel Broking said,"Stove Kraft listed on the exchange at 21% premium to the issue price at the higher price band due to positive market sentiment. We are cautious about its valuation. Company's brand value, margins and return on capital are lower than its peers. Any increase in raw material prices will have a significant impact on the bottom line. Company also do not have a good track record of profitability. Cost reduced in H1FY21 due to Covid-19 such as travelling, advertisement is going to come back once business comes back to normalcy. So H1FY21 margins are not sustainable. We advise investors to book profit."
11. 42 AM: Suzlon Energy Q3 outlook
Amarjeet Maurya - AVP - Mid Caps, Angel Broking said,"During the 3QFY21, Suzlon Energy Ltd (SEL) reported revenue of ~Rs938cr (up 43% YoY) due to strong project execution. On the EBITDA front, the company has reported Rs136cr and EBITDA margin at 14.5% again EBITDA level loss in 3QFY20 due to cost control measures. On the bottom-line front, the company has reported loss of Rs117cr as against Rs736cr in 3QFY20."
11. 30 AM: Stove Kraft share lists at 21% premium to IPO issue price
Shares of Stove Kraft listed at a premium of 21% on BSE on Friday. The share opened at Rs 467 on BSE against issue price of Rs 385. Total 6.11 lakh shares changed hands on BSE in early trade. Market cap of the firm stood at Rs 1,429 crore. Intra day, the share rose 28.71% to Rs 495.55 on BSE.
Stove Kraft IPO was subscribed 18 times on its last day of subscription.
The firm which planned to raise Rs 412.62 crore held its IPO from January 25-28. Portion for qualified institutional buyers (QIBs) category was subscribed 8 times, while that for non-institutional investors was subscribed 32.72 times. Retail individual investors category was subscribed 26 times.
11. 27 AM: Sensex hits 51,000 mark for first time, Nifty crosses 15K
Sensex and Nifty extended their record-setting run for the fifth session in early trade on Friday, ahead of the RBI monetary policy outcome. Rise in global markets also supported sentiment on the Dalal Street. Sensex briefly touched the 51,000-level and Nifty scaled the key 15,000 mark.
With today's rise, Sensex has hit all-time high of 51,073 and Nifty has scaled a record of 15,014.
Market cap on BSE rose to Rs 201.47 lakh crore.
11. 13 AM: Gold and silver outlook
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking said," As of today Traders can go for buy in Gold at 46500 levels with the stop loss of 46200 levels for the target of 47300 levels. They can also for buy in Silver at 67000 levels with the stop loss of 66000 levels for the target of 68500 levels.
He added," On Thursday, Spot Gold prices plunged over 2.2% to close at $1792.3 per ounce as appreciating Dollar on hopes of improvement in the US economy and rising US treasury yield shifted the investors away from Gold. Strengthening of the US Currency made the Dollar denominated Gold less desirable for other currency holders. Also, US private payrolls recovered indicating towards an improvement in the labour market. The losses were capped as additional stimulus measures raised inflation worries which underpinned the demand for the yellow metal. Alarming increase in the covid19 cases around the globe and hopes over additional stimulus by US is expected to levy some support for Gold."
11.08 AM: RBI MPC Highlights
-RBI will come out with a draft paper regulated lenders in MFIs. The RBI also extends MSF relaxation for the next six months.
-Govt to review inflation target for RBI by March 2021
-Vegetables prices likely to remain soft in near term; inflation to be revised to 5.2 pc in Q4 of FY21
-The RBI governor says the central bank will form an expert panel to strengthen primary urban co-op banks.
11.05 AM: GDP growth estimated to be 10.5% in FY22, says RBI
The Reserve Bank of India estimates GDP growth to be 10.5 per cent in 2021-22, said RBI Governor Shaktikanta Das during the MPC meet announcements on Friday. This is the first monetary policy announcement after the presentation of the Union Budget on February 1.
Governor Das said that the need of the hour is to continue supporting growth. "While the year 2020 tested our capabilities and endurance, 2021 is setting the stage for a new economic era in the course of our history," he said.
11.02 AM: HDFC Q3 outlook-Buy rating
Motilal Oswal in its report said,:" HDFC's core PBT grew 21% YoY to INR33.5b (5% beat), driven by a similar beat on NII and higher assignment income recognized during the quarter. Provisions at INR5.9b were much higher than our est. of INR4b. Individual disbursements grew 26% YoY for 3Q, and individual AUM grew 4% QoQ /10% YoY. Adjusted for the Supreme Court (SC) dispensation, GNPL deteriorated by 8bp to 1.91%. In addition, 90bp of AUM has been restructured, of which 50bp belongs to one large corporate account. Write-offs have been higher at INR6.8b, including one-time settlement losses. We largely maintain our estimates. We expect HDFC to report core RoA/RoE of 2%/13% over FY22-23E. Reiterate Buy, with SOTP-based TP of INR3,300 (FY23 SOTP-based)."
10. 51 AM: India's exports expand for second consecutive month in January
MOFL in its daily norning report said," India's merchandise exports and imports expanded for the second consecutive month in January, signalling a turnaround in domestic and external demand after the pandemic devastated the value of trade in Asia's third-largest economy. Imports expanded 2.05% last month while exports grew 5.37%, leaving a trade deficit of $14.75 billion, according to preliminary data released by the commerce ministry. Non-petroleum and non-jewellery imports grew 5.94%, signalling an increase in domestic activities."
10. 43 AM: RBI keeps rate unchanged
The RBI in its February 5 policy meet decided to keep repo rate unchanged at 4%.Reserve Bank of India Governor Shaktikanta Das said the decision to keep the rates unchanged was taken unaimously, and projected 10.5 per cent GDP growth for 2021-22.
The central bank has cut policy rates by 115 basis points since February 2020. The MPC kept the key benchmark rate unchanged in its last three review announcements. The current repo rate -- rate at which RBI lends to banks -- is at a record low of 4 per cent. The reverse repo rate -- rate for funds parked by banks with RBI -- is 3.35 per cent.
10. 34 AM:Manappuram Finance : Close position
Reliance Research said in its note," The stock failed to surpass its short-term resistance (Rs187) and reversed down. On the lower side, the stock found support at around its Oct20 low of Rs153 and bounced to Rs185. Overbought technical indicators on the near-term timeframe chart signal the stock may not to be able to surpass that resistance. Hence, its advised to close the long trade at current juncture (Rs183)."
10. 23 AM: Market opening session view
On markets opening --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"We have hit the 15000 mark and the markets did it with utmost ease! While the Nifty was a tad shy since the last couple of days, it managed to conquer the psychological level. We should scale higher to levels closer to 15200 and this could be achieved by this month itself. 14500 is a good support for the index and intra day corrections can be positively utilised to initiate or add positions."
10. 13 AM: Mrs. Bector Food Specialities outlook and view-Buy rating
Keshav Lahoti, Associate Equity Analyst, Angel Broking said," Mrs. Bector Food Specialities are one of the leading companies in the premium and mid-premium biscuits segment and the premium bakery segment in North India. Company manufactures and markets a range of the biscuits such as cookies, creams, crackers, digestives and glucose under our flagship brand Mrs. Bector's Cremica. Stock has corrected 33% in the last 1 month due to high valuation. We believe now stock is available at reasonable valuation. It is one of the leading brands in biscuits and bakery businesses in North India. Also, Company is the leading exporter of biscuits. For the next few years, we expect the domestic biscuit and bakery market to grow by 9% due to urbanization, increase in disposable income, favorable government policy. On the other hand, the institutional Indian bakery industry is expected to grow by 20% due to increasing market share of QSR chain. We think the company should be able to grow in line with the industry managed by the promoters having more than 25 years of sector knowledge. We advise investors to buy Mrs Bectors."
10. 05 AM: Rupee opens flat ahead of RBI MPC outcome
Kshitij Purohit, Product Manager, Currency & Commodities at CapitalVia Global Research said," The rupee opened on flat at 72.93 against the US dollar in opening trade on Wednesday morning, the rupee open in green at 0.08 paisa. On Wednesday it closed 72.94 against greenback. Investors are waiting for the monitory policy today and will take ques from it. The RBI is also widely expected to communicate its stance on liquidity management. FII buying 1980 CR into domestic equity market provides support to domestic currency. The U.S. Dollar Index is at 91.17 against currency basket. Its trading above 50 Day SMA and likely to go towards 100 days SMA, showing bullish momentum. Asian Equity market trading flat on the morning.
He added,"Technically, USDINR Feb Future closed at 73.1275. Tt is expected to trade with bullish momentum for the day. Spot pair took support of 72.80 and rose up, it took resistance of 21 days SMA placed at 73.08 and closed below it. It is expected to open near 72.90, strong dollar index, RBI are defending 72.80 levels very strongly."
10.00 AM: Market opening session outlook
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said," The market will be keenly watching the monetary policy due today, particularly the nuances of the policy and indications coming from the central bank. The policy rates are likely to remain unchanged but there can be indications on liquidity management, going forward. The RBI has a crucial role to play in growth recovery by pursuing an accommodative stance for an extended period of time. Low-interest rates have turned out to be a strong tailwind for sectors like housing and automobiles. A major macro concern is the possibility of high fiscal deficit fuelling inflation shortly. If this happens the MPC will be forced to tighten rates with its negative consequences on growth. The RBI has a challenging task ahead"
9. 54 AM: Global markets
Geojit Financial said in ite note today," Overseas, Asian stocks rose on Friday after overnight gains stateside that saw the S&P 500 and Nasdaq posting record closing highs.
U.S. stocks jumped on Thursday, extending the rally into a fourth straight day as investors assessed a new batch of corporate earnings and solid economic data. The S&P 500 and Nasdaq posted record closing highs.
On the stimulus front, Democrats are moving forward with President Joe Biden's $1.9 trillion Covid-19 relief proposal. Republicans have countered with a more modest $618 billion package, which includes new stimulus checks of $1,000 per person."
9. 41 AM: Market outlook
Ajit Mishra, VP - Research, Religare Broking said," The outcome of the MPC's monetary policy review meeting, which is scheduled for Feb 5, will be closely watched by the participants. The majority expect status quo on interest rates but the commentary on inflation and economic outlook would hold importance. Amid all, we reiterate our view to focus on the selection of stocks and continuing with the "buy on dips" approach. Nifty has the potential to test 15,200 zone ahead."
9. 38 AM: Market hits new high
Market indices continued trading on a bullish note Friday, ahead of the outcome of RBI MPC policy, amid positive global equities. SGX Nifty on the Singapore Exchange was rising by 90 points, indicating a positive trend in domestic grounds today. Sensex gained 450 points higher to 51,031 for the very first time, while Nifty gained by 95 points to 15,004. Sensex and Nifty hit fresh lifetime highs of 51,073 and 15,014 during today's session.
9. 34 AM: Q3 earnings today
Mahindra & Mahindra, Pfizer, Punjab National Bank , Alkem Laboratories, Aditya Birla Capital, Ashoka Buildcon, Britannia, Cadila Healthcare, Equitas Holdings, Fortis Healthcare, GlaxoSmithkline Pharma, Gujarat Gas and Jubilant Life Sciences among others will be reporting their financial results for the October-December period on Friday.
9. 21 AM: RBI MPC outcome today
The Monetary Policy Committee (MPC), headed by RBI Governor, will announce its interest rate decision today, 5 February 2021. All frontline indices are trading at record highs, with Nifty hitting 15,000, Sensex at 51,000, Nifty Bank at 36,000 and Midcap Index at 23,000.
9. 18 AM: Nifty outlook
Reliance Research said in its note," NSE-NIFTY explored uncharted territory and recorded new high of 14,914. 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 were positively poised. We continue to believe that 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 14,700-level initially and 14,400-level subsequently.
As for the day, support is placed at around 14,769 and then at 14,642 levels, while resistance is observed at 14,968 and then at 15,040 levels. "
9. 10 AM: Opening session
Market indices continued trading on a bullish note Friday, ahead of the outcome of RBI MPC policy, amid positive global equities. SGX Nifty on the Singapore Exchange was rising by 90 points, indicating a positive trend in domestic grounds today. Sensex gained 450 points higher to 51,031 for the very first time, while Nifty gained by 55 points to 14,952. Sensex and Nifty hit fresh lifetime highs of 51,031 and 14,980 during today's session.
9.00 AM: FII action
Foreign portfolio investors (FPIs) bought shares worth Rs 1,936.74 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 768.55 crore in the Indian equity market on 4 February, provisional data showed.
8. 50 AM: Rupee closing
On the domestic currency market, the Indian rupee ended unchanged at 72.96 per US dollar on Thursday even as the domestic equity markets scaled fresh highs. Traders said investors turned cautious ahead of Reserve Bank of India's monetary policy decision on Friday.
8. 45 AM: Closing on Thursday
Rallying for the fourth successive session, equity benchmark indices closed at record highs on Thursday, in line with positive global equities. After a volatile session, Sensex ended 358 points higher at 50,614 and Nifty gained 105 points to 14,895. Sensex and Nifty hit fresh lifetime highs of 50,678 and 14,913 during today's session.