Sensex Ends 447 Points Higher; Automobile & IT Stocks Rally
Closing

Indian share markets witnessed buying interest during closing hours and ended today's volatile session higher.

Benchmark indices ended on a strong note amid positive cues from Asian peers and a record close by S&P 500, as global worries around inflation calmed down.

GST collection numbers further indicated some positive trend with GST revenues over Rs 1 lakh crore for the 5th time in a row. Post hitting a new high in terms of GST collections in January 2021, the collections in February 2021 too, were 7% higher YoY.

At the closing bell, the BSE Sensex stood higher by 447 points (up 0.9%).

Meanwhile, the NSE Nifty closed higher by 158 points (up 1.1%).

M&M and NTPC were among the top gainers today. ONGC and HDFC, on the other hand, were among the top losers today.

The SGX Nifty was trading at 14,975, up by 176 points, at the time of writing.

Both, the BSE Mid Cap index and the BSE Small Cap index ended up by 1.6%.

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On the sectoral front, gains were largely seen in the automobile sector and IT sector.

Paper stocks rallied today as China producers hiked prices.

Asian share markets fell today after a top regulatory official expressed concerns about the risk of bubbles bursting in foreign markets.

The Shanghai Composite stood lower by 1.2% while the Nikkei ended down by 0.9%. The Hang Seng ended lower by 1.2%.

European share markets are trading on a mixed note as investors sought to guess the bond market's next move, while weak German retail sales were a stark reminder of continued Covid-19 fallout on the region's biggest economy.

The dollar rose to its highest level in a month as underlying concerns about rising bond yields drove investors back into safe-haven assets.

The rupee is trading at 73.37 against the US$.

Gold prices for the latest contract on MCX are trading up by 0.1% at Rs 45,359 per 10 grams.

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Speaking of the stock markets, India's #1 trader, Vijay Bhambwani talks about why it's prudent to be extra cautious during the month of March, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

In latest developments from the IPO space...

Hyderabad-based MTAR Technologies will open its Rs 5.96-billion initial public offering (IPO) for subscription on Wednesday.

The IPO comprises a fresh issue of 2.15 million shares and an offer-for-sale (OFS) of 822.4 million shares and will close on March 5.

MTAR is a leading maker of nuclear, defence and aerospace equipment, fabrication facilities and fuel cells. The company recently sold 185.1 million shares at Rs 540 apiece in a pre-IPO placement to schemes of SBI Mutual Fund and Axis Mutual Fund.

The price band has been fixed at Rs 574-575 apiece for the IPO.

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According to the company's prospectus, proceeds from the fresh issue will be used for repayment or pre-payment of its borrowings and funding working capital requirements.

The company has three key customers in the fuel cell, nuclear, and space and defence segments.

In the fuel cell segment, Bloom Energy is its largest customer. In the nuclear segment, Nuclear Power Corporation of India is the company's key customer. In the space and defence segment, clients such as the Indian Space Research Organisation (ISRO) and Defence Research and Development Organisation (DRDO) are the key customers of the company.

How this IPO sails through remains to be seen.

Moving on to stock specific news...

Nestle India was among the top buzzing stocks today.

In a recently held analysts' meet, Nestle India's management said it expects to sustain volume-led double-digit growth.

Nestle registered a volume growth of 6% in CY20 aided by strong growth in Maggi Noodles (approximately 20% in Q4 CY20) and KitKat (more than 20% in H2 CY20).

Some key challenges faced by the company during the pandemic were supply constraints in the noodles category in Q2 CY20 and demand contraction from out of home channels in the beverage segment.

The company also maintained its strong focus on driving increased distribution reach in the rural markets.

The FMCG major, typically known for its urban-centric business model, is aiming to reach an unprecedented 120,000 villages by 2024, backed by rural-focused SKUs.

From 1,000-odd villages in 2017, Nestle grew its presence to 89,000 by 2019. During the period, the share of the rural market in its sales grew from less than 15% to 25%.

However, it had to slow down its product innovation in 2020 due to higher focus on protection of core brands in a muted demand environment. But the management has now indicated that more than 40 new products in the pipeline.

Nestle India share price ended the day up by 1.7%.

Speaking of the FMCG sector, have a look at the chart below which shows the performance of BSE Sensex and BSE FMCG index since 2009:

While the Sensex has offered 393% returns since 2009, the BSE FMCG index has gone up a staggering 532% returns over the same period.

Richa Agarwal, lead Smallcap Analyst at Equitymaster, believes this outperformance could continue for many years.

With a rising population and standards of living, Indian's consumption demand for FMCG products will skyrocket over the coming years.

Moving on to news from the automobile sector, shares of Tata Motors ended at their highest level since May 2018 after the company's sales growth in the month of February outperformed sector peers across domestic commercial vehicle (CV) & passenger vehicle (PV) segments.

The auto major reported a 51.1% increase in total sales at 61,365 units in February. It had sold a total of 40,619 units in the same month last year.

The Tata group company reported 54% year-on-year (YoY) growth in domestic sales at 58,473 units in the month of February 2021.

It retained the positive momentum in PV segment and reported 119% YoY jump at 27,225 units. The February sales have been the highest-ever sales for Tata Motors PV in nearly 9 years, the company said.

The company's CV segment, too, reported volumes of 33,966 units, up 21% YoY and 3.2% on month-on-month (MoM) basis.

Tata Motors share price ended the day up by 5.4%.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex Trades Over 200 Points Higher; Dow Futures Down by 90 Points
12:30 pm

Share markets in India are presently trading on a strong note.

The BSE Sensex is trading up by 209 points, up 0.4% at 50,058 levels.

Meanwhile, the NSE Nifty is trading up by 76 points.

BPCL and Mahindra & Mahindra is among the top gainers today. ONGC and HDFC are among the top losers today.

Both the BSE Mid Cap and BSE Small Cap index are trading up by 0.9%.

On the sectoral front, stocks from the automobile sector are witnessing most of the buying interest.

On the other hand, stocks from the banking sector are witnessing most of the selling pressure.

US stock futures are trading lower today, indicating a negative opening for Wall Street.

Nasdaq Futures are trading down 43 points (down 0.3%) while Dow Futures are trading down by 90 points (down 0.3%)

The rupee is trading at 73.37 against the US$.

Gold prices are trading down 0.2% at Rs 45,223 per 10 grams.

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In international markets, gold prices showed mixed trends. Gold prices fell amid better-than-expected US ISM manufacturing data and strength in the dollar index.

Tracking a muted trend seen in international spot prices, India Gold MCX April futures edged lower today. On MCX, April gold contracts were trading lower by 0.6% at Rs 45,050 for 10 grams in early trade.

To know more about gold, check out our article on how to invest in gold here: How to Invest in Gold?

Moving on to stock specific news...

Among the buzzing stocks today is BPCL.

Privatization-bound Bharat Petroleum Corporation (BPCL) on March 1, 2021, said it will exit the Numaligarh refinery in Assam by selling its entire stake to a consortium of Oil India and Engineers India for Rs 98.7 billion.

The sale of Numaligarh Refinery clears the way for the privatization of India's second-largest fuel retailer.

In keeping with the Assam Peace Accord, the government had decided to keep Numaligarh Refinery (NRL) in the public sector. As part of this, BPCL was to sell its entire 61.7% stake to state-owned firms. A consortium of Oil India, Engineers India, and the Government of Assam expressed interest in buying the stake and the BPCL board on Monday approved the sale.

"The board of directors of BPCL at the meeting held on March 1, 2021, has approved the proposal for sale of entire equity shares of Rs 44.5 billion held by BPCL in NRL to a consortium of OIL and EIL and to Government of Assam," the firm said in a filing to the stock exchanges.

The total consideration would be Rs 98.7 billion.

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NRL operates a 3 million tonnes per annum oil refinery in Assam. OIL currently holds 26% equity in NRL while the Government of Assam has around 12.4%. Post NRL sale, BPCL would be left with three refineries at Mumbai, Kochi (Kerala) and Bina (Madhya Pradesh).

Note that the sale of NRL is the first step towards the disinvestment of BPCL. The government has already indicated that it expects to complete BPCL privatization by the first half of the fiscal beginning April (FY22). The sale is key to achieving the Rs 1,750 billion disinvestment target set for FY22.

BPCL will give the buyer ownership of around 15.3% of India's oil refining capacity and 22% of the fuel marketing share.

How this pans out remains to be seen. Meanwhile stay tuned to more updates from this space.

At the time of writing, BPCL share price was trading down by 3.7% on the BSE.

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani talks about why it's prudent to be extra cautious during the month of March, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

Moving on to news from the automobile sector...

Delhi Government Suspends Subsidy on Tata Nexon EV

The Delhi government has suspended the subsidy offered on Tata Nexon Electric Vehicle (EV) owing to complaints claiming the battery-powered car wasn't meeting the per-charge range claimed by Tata Motors.

The company responded by terming it 'unfortunate' and underlined the claim of Nexon EV running 312 kilometres per charge as per the Automotive Research Association of India (ARAI).

Delhi transport minister Kailash Gehlot earlier in the day pointed to complaints from several Nexon EV owners who stated that the range of their car wasn't what was being claimed by Tata Motors.

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"The Delhi government has decided to suspend subsidy on an EV car model, pending the final report of a Committee, due to complaints by multiple users of sub-standard range performance," he said. "We are committed to supporting EVs, but not at the cost of trust & confidence of citizens in claims by manufacturers."

After the suspension of subsidy on Nexon EV, a Tata Motors spokesperson said the company will continue to work with customers while underlining the certified range of the vehicle. "It is unfortunate to receive this order from the Delhi Transport Commission. We will continue to engage constructively to protect the interests of our customers," he said.

"As with conventional vehicles (with IC engines), the actual range achieved in EVs is dependent on AC usage, individual driving style and the actual conditions in which the vehicle is driven. The range achievement is also a function of familiarity with the new technology, and customers report improvements upwards of 10% within 4-6 weeks of familiarity."

We will keep you posted on more updates from this space. Stay tuned.

Speaking of electric vehicles, note that the power ministry has approved setting up 2,636 electric vehicle charging stations across 62 cities in 24 states.

Here's what Co-Head of Research at Equitymaster, Tanushree Banerjee wrote about electric vehicles in one of her editions of Profit Hunter:

  • 106 public and private entities have approached the government for permissions to set up about 7,000 EV charging stations.

    This clearly shows the vehicle manufacturers have enough incentive to capture this latent demand.

    The tax benefit in terms of a lower GST rate (at 5%) is a further shot in the arm of the EV industry.

As per Tanushree, electric vehicles are very much on their way to invading Indian roads. The threat of disruption in this era is something you cannot ignore.

Tanushree believes one of the companies manufacturing lithium ion batteries for powering electric cars will be a key catalyst for the Rebirth of India.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex Opens 450 Points Higher; BPCL Jumps 4%
09:30 am

Asian share markets are trading on a mixed note today as stocks extended the global rally as a halt in a recent bond markets sell-off eased investor nerves and lifted riskier assets.

The Nikkei is trading down by 0.6% while the Hang Seng is down 1.1%.

In US stock markets, Wall Street indices rallied overnight with the S&P 500 posting its best day in nearly nine months, as bond markets calmed after a month-long selloff.

All eyes will be on Australia's central bank, which holds its monthly policy meeting today. Analysts expect the Reserve Bank of Australia to hold key rates at a historic low but focus will shift to commentary about its quantitative easing programme.

The Dow Jones Industrial Average rose over 600 points to close with gains of 2%, while the tech-heavy Nasdaq Composite jumped 3%.

Back home, Indian share markets have opened on a positive note, following the trend on SGX Nifty.

The BSE Sensex is trading up by 481 points. Meanwhile, the NSE Nifty is trading higher by 137 points.

NTPC is among the top gainers today. ONGC, on the other hand, is among the top losers today.

The BSE Mid Cap index has opened up by 1%. The BSE Small Cap index is trading higher by 1.2%.

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All sectoral indices are trading in green with stocks in the IT sector and finance sector witnessing most of the buying interest.

Shares of Linde India and Just Dial hit their 52-week highs today.

The rupee is trading at 73.43 against the US$.

Gold prices are trading down by 0.5% at Rs 45,080 per 10 grams.

Speaking of stock markets, in the latest episode of Investor Hour, India's #1 trader Vijay Bhambwani discusses stock markets, the best sectors, ETFs, gold, silver, inflation, cryptos, oil and gas prices, the best investment for the long term, and a lot more.

In the video, Vijay also talks about his new targets for gold and silver and the best long-term investment opportunity.

Tune in to the below video to find out more:

In news from the shipping sector, the government has received multiple bids for privatisation of Shipping Corporation of India, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said on Monday.

In December, DIPAM had invited expressions of interest (EoI) for strategic disinvestment of its entire stake of 63.75% in Shipping Corp of India, along with the transfer of management.

The last date for submitting the bids was February 13, which was later extended to March 1.

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In November last year, the Cabinet had given an in-principle approval for strategic divestment of Shipping Corp and Container Corporation. However, the plans were delayed due to the pandemic.

In her Budget speech for 2021-22 Finance Minister Nirmala Sitharaman had said, "a number of transactions namely BPCL, Air India, Shipping Corp of India, Container Corp of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam among others would be completed in 2021-22."

For 2021-22, the government has set a disinvestment target of Rs 1.75 lakh crore, over five times what it is aiming to raise in the current financial year. In the revised estimates, the target has been set at Rs 320 billion for current fiscal.

How the above developments pan out remains to be seen. Meanwhile, we will keep you updated on the latest developments from this space.

Moving on to news from the banking sector, HDFC Bank is among the top buzzing stocks today.

India's largest private lender, HDFC Bank said issues related to internet banking were resolved after some customers faced the second outage in three months.

"There were intermittent issues in accessing Net Banking and Mobile Banking, faced by some of our customers. The issue stands resolved," the bank's spokesman said in a text message.

Note that the nation's most valuable lender has been facing repeated technical glitches for its netbanking platform, an issue which prompted the central bank to take rare steps recently including an external audit of the bank's technology infrastructure, and curbing digital and credit card launches.

Digital payments have jumped to a record high in India as the coronavirus pandemic dissuades people from going out and using cash.

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Meanwhile, HDFC Securities, the brokerage arm of the bank, also experienced technical glitches on Monday. It said investigations are on to identify the root cause of the outage.

HDFC Bank share price has opened the day up by 1.5%.

Note that, HDFC Bank is one that has always adapted to changing times.

HDFC Bank wanted to transform itself from a leader in the physical banking to a leader in online banking. Since then, HDFC Bank has constantly focused on going digital.

In 2004, only 10% of customer transactions were initiated through internet and mobile. The number has gone up to 92% in 2019.

HDFC Bank's Digital Transformation

It is a great example of a company which has taken advantage of its scale and embraced disruption rather than fear it.

These are traits that one should look for in picking stocks. They not only withstand the disruption but also gain from it in the long-run.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


SGX Nifty Up 81 Points, 4 Factors Behind the Sensex Rally, Maruti Suzuki February Sales, and Buzzing Stocks Today
Pre-Open

Indian share markets witnessed positive trading activity throughout the day yesterday and ended on a strong note.

Benchmark indices rebounded amid broad-based buying after they suffered their biggest one-day drop last week on Friday.

At the closing bell yesterday, the BSE Sensex stood higher by 750 points (up 1.5%).

The NSE Nifty closed higher by 232 points (up 1.6%).

Power Grid and ONGC were among the top gainers.

The BSE Mid Cap index ended up by 1.5%, and the BSE Small Cap index ended up by 1.6%.

On the sectoral front, gains were largely seen in the automobile sector, metal sector and power sector. Telecom stocks, on the other hand, witnessed selling pressure.

At 8:10 am today, the SGX Nifty was trading up by 81 points, or 0.6% higher at 14,875 levels. Indian share markets are headed for a firm opening today following the trend on SGX Nifty.

Gold prices for the latest contract on MCX were trading up by 0.6% at Rs 45,989 per 10 grams at the time of closing stock market hours yesterday.

Gold edged higher yesterday, recovering from an eight-month low touched in the previous session, as a weaker dollar lifted bullion's appeal.

Physical gold demand in India gained momentum last week as retail buyers and jewellers lapped up bullion at near eight-month low prices, while Singapore continued to see steady interest for both gold and silver.

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Why Indian Share Markets Rallied Yesterday...

Firm Global Cues: Asian share markets bounced back yesterday after their worst drop in almost a year last week after a spike in global bond yields spooked investors already uneasy about the market's stretched valuation.

Japan's Topix Index jumped the most in seven months, as a pause in selloffs in US treasuries boosted the tech-heavy Nasdaq index and lifted domestic shares of chipmakers.

The Nikkei ended up by 2.4%. The Shanghai Composite ended up 1.2%. It fell 5.1% last week, its biggest weekly percentage drop since February 2020.

Encouraging GDP Numbers: Indian share markets also reacted to encouraging Q3 GDP data announced after market hours on Friday.

India's GDP grew 0.4% in October to December, compared with a revised contraction of 7.3% in July to September.

Macro Data: Manufacturing activity in India eased marginally in February but remained above the long-term average level. The IHS Markit India Manufacturing Purchasing Managers' Index was 57.5 in February compared to 57.7 in January but remained above its long-run average of 53.6.

US Stimulus Package: The rebound in global bond markets and developments related to the US stimulus package buoyed markets in Asia and India.

US House of Representatives passed a US$ 1.9 trillion coronavirus relief package early Saturday. Democrats who control the chamber approved the sweeping measure by a mostly party-line vote of 219 to 212 and sent it to the Senate, where Democrats planned a legislative move to allow them to pass it without the support of Republicans.

We will keep you updated on how these factors develop in the coming days and what effect they have on Indian stock markets. Stay tuned!

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Speaking of stock markets, in the latest episode of Investor Hour, India's #1 trader Vijay Bhambwani discusses stock markets, the best sectors, ETFs, gold, silver, inflation, cryptos, oil and gas prices, the best investment for the long term, and a lot more.

In the video, Vijay also talks about his new targets for gold and silver and the best long-term investment opportunity.

Tune in to the below video to find out more:

Top Stocks in Focus Today

Among the buzzing stocks today will be Reliance.

Reliance Strategic Business Ventures (RSBVL), a wholly owned subsidiary of Reliance Industries (RIL), has acquired an additional equity stake in its investee company skyTran Inc, the company announced on February 28, 2021.

The additional equity stake was acquired by RSBVL for a consideration of US$ 26.8 million, increasing its shareholding to 54.5% on a fully diluted basis, said the statement.

skyTran, a technology company incorporated under the laws of Delaware, US, in 2011, has "developed breakthrough passive magnetic levitation and propulsion technology for implementing personal transportation systems aimed at solving the problem of traffic congestion globally", the statement said.

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Telecom stocks will also be in focus today as the India's telecom spectrum auction kickstarted yesterday, for the fourth-generation (4G) mobile networks.

Note that the Union Cabinet, on December 16, 2021 had approved the auction of 2,251 megahertz (MHz) of the spectrum by the end of FY21 at a reserved price of Rs 3,920 billion.

The government will offer spectrum across seven bands-700 MHz, 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, and 2,500 MHz, according to a notice issued by the Department of Telecommunications (DoT) in January.

The three big telecom companies - Airtel, Vodafone Idea, and Reliance Jio will participate in the auction. The spectrum bought will be valid for 20 years.

Maruti Suzuki Reports 11.8% Increase in Wholesales in February

Moving on to news from the automobile sector...

Country's largest carmaker Maruti Suzuki reported a 11.8% increase in wholesales to 1,64,469 units in February. The company had sold 1,47,110 units in February last year.

Domestic sales increased 11.8% to 1,52,983 units last month, as against 1,36,849 units in February 2020.

Sales of mini cars, comprising Alto and S-Presso, declined by 12.9% to 23,959 units, as compared to 27,499 in the same month last year.

Sales of compact segment vehicles, including models Swift, Celerio, Ignis, Baleno and Dzire, increased by 15.3% to 80,517 units, as against 69,828 cars in February last year.

Sales of mid-sized sedan Ciaz, however, declined by 40.6% to 1,510 units, as compared to 2,544 units in February 2020.

Utility vehicle sales, including Vitara Brezza, S-Cross and Ertiga, rose 18.9% to 26,884 units, as compared to 22,604 units in the year-ago month.

Exports in February were up 11.9% at 11,486 units, as against 10,261 units in the corresponding month last year.

How these numbers show up in the coming months remains to be seen. Meanwhile, we will keep you updated on all the developments from this space.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.