Sensex Ends 441 Points Lower; Nifty Settles Below 15,000-Mark
Closing

Indian share markets witnessed huge selling during closing hours today and ended their day lower.

Benchmark indices ended lower for the second straight session amid volatility triggered by the Fed Reserve chair's statement on market intervention.

At the closing bell, the BSE Sensex stood lower by 441 points (down 0.9%). Meanwhile, the NSE Nifty ended down by 143 points (down 1%).

ONGC was among the top gainers today. IndusInd Bank and Wipro, on the other hand, were among the top losers today.

SGX Nifty was trading at 14,950, down by 156 points, at the time of writing.

The BSE Mid cap index and the BSE Small cap index ended down by 1.9% and 1.5%, respectively.

On the sectoral front, metal stocks, banking stocks and IT stocks were among the hardest hit.

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Shares of Avenue Supermarts and Adani Gas hit their respective 52-week highs today.

Asian share markets ended on a negative note today. The Nikkei ended lower by 0.2% while the Hang Seng ended down by 0.5%.

Rising US bond yields put European share markets under pressure after Federal Reserve Chair Jerome Powell's remarks failed to soothe investor concerns about a recent surge in borrowing costs.

While Powell said the rise in yields was "notable", he did not consider it a "disorderly" move, or one that pushed long-term rates so high the Fed might have to intervene in markets more forcefully to bring them down.

The comments fueled a sell-off on Wall Street overnight, pushing the tech-heavy Nasdaq to erase its yearly gains.

US stock futures are trading lower today indicating a weak opening for Wall Street indices with the Dow Futures trading down by 115 points (down 0.3%).

Gold prices for the latest contract on MCX are trading down by 0.5% at Rs 44,305 per 10 grams.

The rupee is trading at 73.01 against the US$.

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Speaking of the current stock market scenario, note that the BSE Small-cap index broke past the 21,000- barrier earlier this week.

The index had crashed to a multi-year low of 8.6k back in March 2020. Who would have thought that in less than a year, the index will come roaring back and go up a massive 133%?

While caution is indeed warranted, Richa Agrawal, Research Analyst at Equitymaster, thinks there is still a lot more steam left to this smallcap rally.

Despite rallying more than 130% since the March 2020 lows, Richa believes small-cap stocks are set for a massive up move in 2021 and beyond.

Here's what she wrote in a recent edition of Profit Hunter...

  • The P/E for smallcap index doesn't make sense. There are thousands of listed small companies. Some have negative earnings. The base is not a valid data to work with.

    That said, the closest proxy to relative valuations is the Smallcap to Sensex ratio,

    Historically, this ratio has averaged 0.43x. In the previous mega runs of the smallcap index, this ratio has gone as high as 0.75x.

    In January 2018, when smallcaps peaked, the ratio was at 0.58x.

    Guess where this ratio is now after a 100% run up in the smallcap index?

    0.38.

    It's lower than the median over 2 decades.

Richa believes if you focus on the quality of business, margin of safety in valuations, and an optimum asset allocation, you are likely to create huge wealth for yourself.

In latest developments from the IPO space...

The public issue of MTAR Technologies was subscribed 178.4 times so far at the time of writing, on the final day of bidding.

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The reserved portions for retail and non-institutional investors was subscribed 27.9 times and 552.6 times, respectively. The portion set aside for qualified institutional buyers witnessed a subscription of 161.4 times.

The Rs 5.96-billion public offer received bids for 1,295 million equity shares against the issue size of over 7.3 million equity shares, the subscription data available on the exchanges showed.

The company mopped up Rs 1.8 billion through anchor book on March 2, hence the issue size has been reduced to 7.3 million equity shares from over 10.3 million shares.

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.

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

In the grey market, MTAR Technologies shares were commanding a strong grey market premium of 85% over the issue price of Rs 575 apiece. The shares of precision engineering solutions company were trading at Rs 1,060 per share in the grey market, implying an upside of Rs 485 apiece.

How the IPO performs on listing day remains to be seen.

Speaking of stock markets, in his latest video for Fast Profits Daily, India's #1 trader Vijay Bhambwani talks about how inflation is affecting your money in the market and why you need to keep a close eye on it.

Tune in to the video below to find out more:

Moving on to stock specific news...

Vodafone Idea was among the top buzzing stocks today.

Shares of Vodafone Idea slipped over 5% today amid reports that the debt-laden telco's fund-raising plans have hit a snag.

Vodafone Idea's talks with the Oak Hill consortium have not led to a binding agreement as there were unresolved issues around funding terms, guarantees and claims to the struggling telco's assets in case of a payment default, a report by Economic Times stated.

The report added that while talks between the two sides have not fallen through completely, the telecom JV between UK's Vodafone Group and Aditya Birla Group is already exploring other potential funding partners and is confident of securing funding by the end of this month.

The exclusive period for talks between the group of potential lenders consisting of Oak Hill, Pacific Investment Management Co, Sixth Street, Twin Point Capital and Varde Partners and Vodafone Idea was extended by a month from January 30 to February 28 but no agreement could be signed.

Vodafone Idea share price ended the day down by 3.3%.

Market participants were also tracking Quick Heal Technologies share price.

Shares of Quick Heal Technologies surged up to 8% to hit fresh 52-week high of Rs 187 after the company said its board will consider a share buyback on March 10, 2021.

Quick Heal Technologies is one of the leading providers of IT security and data protection solutions with a strong footprint in India and an evolving global presence.

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


Sensex Trades Marginally Lower; Dow Futures Down by 39 Points
12:30 pm

Share markets in India are presently trading marginally lower.

The BSE Sensex is trading down by 160 points, down 0.3% at 50,685 levels.

Meanwhile, the NSE Nifty is trading down by 66 points.

ONGC and GAIL is among the top gainers today. IndusInd Bank and Wipro are among the top losers today.

The BSE Mid Cap index trading down by 1.3%.

The BSE Small Cap index is trading down by 0.8%.

On the sectoral front, stocks from the telecom sector are witnessing most of the selling pressure.

On the other hand, stocks from the energy sector are witnessing most of the buying interest.

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

Nasdaq Futures are trading down 34 points (down 0.3%) while Dow Futures are trading down by 39 points (down 0.1%)

The rupee is trading at 72.83 against the US$.

Gold prices are trading down 0.6% at Rs 44,293 per 10 grams.

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In global markets, gold continued its downward trend with prices declining 0.2% to US$ 1,693.8 per ounce.

Amid weak global cues, gold prices suffered further losses today in domestic markets. On MCX, gold futures were down 0.3% to Rs 44,400 per 10 grams in its eighth day of decline in past nine sessions that has taken prices to more than 10-month lows.

Note that the precious metal is down more than 2% this week amid a hardening of US bond yields and a stronger US dollar. Higher yields increase the opportunity cost of holding bullion, which pays no interest.

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 Indiabulls Housing Finance.

Indiabulls Housing Finance has raised US$150 million (Rs 10.9 billion) by issuing foreign currency convertible bonds, the company said on March 4, 2021.The FCCBs, set to mature on March 4, 2026, bear a coupon rate of 4.5%. The bonds are proposed to be listed on Singapore Exchange Securities Trading Limited.Indiabulls said as many as 45 million equity shares of the company would be in the trade-off with the FCCBs.

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This is Indiabulls Housing's debut convertible bond issuance. Besides, it is also the first FCCB by a financial institution from India in the last ten years.The housing finance company already raised Rs 26.7 billion through a qualified institutional placement (QIP) in September 2020, and a partial stake of its investment in the London based OakNorth Bank.

On tapping various sources to raise funds, CEO of IBH Sandeep Banga said convertibles have emerged as an alternative source of capital for Asian corporates, having raised US$ 40 billion of capital through convertibles in the last 3 years.With this issuance, Indiabulls Housing Finance has one of the most diversified sources of funding among Indian corporates," he said.The company said macros have strongly turned for the residential housing market in India and it is on the cusp of an extended period of growth. IBH hopes to realise better yields on its retail loans and also to diversify its loan book and customer base.

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

At the time of writing, Indiabulls Housing Finance share price was trading down by 4.2% on the BSE.

Speaking of the stock markets, Brijesh Bhatia, Research Analyst at Equitymaster, discusses why he thinks there is a possibility of the rupee falling to Rs 80 against the dollar in 2021, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

Moving on to news from the power sector...

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Reliance Power Defaults on Repayment to Lenders

Reliance Power has defaulted on repayments to Axis Bank, Yes Bank and Lakshmi Vilas Bank (LVB) due on January 31, 2020.

As per regulatory disclosures, the company has defaulted on repaying Rs 7.8 million to Axis Bank, Rs 10.9 million to Yes Bank and Rs 12.5 million to LVB. The firm had taken a loan of Rs 750 million from Axis Bank, Rs 630 million from Yes Bank and Rs 200 million from LVB. Total borrowings from financial institutions stood at Rs 13.5 billion as of March 3, 2021.

Reliance Power had earlier disclosed during the December quarter that the group was confident of meeting its obligations by generating sufficient and timely cashflows through time-bound monetisation of gas-based power plant equipment and other assets of certain subsidiaries. The firm also hopes to realize the amount from ongoing regulatory arbitration claims.

"Considering the dependence on these material uncertain events and realization of assets, the group is confident that such cashflows would enable it to service its debt and discharge its liabilities in the normal course of its business," Reliance Power said.

The power generation firm had posted a 6% year-on-year (YoY) rise in its consolidated net profit at Rs 522.9 million during the December quarter. Total income also rose around 6% YoY to Rs 20 billion during the quarter from Rs 18.9 billion a year ago.

In November 2020, ICRA had said that the ratings of Reliance Power would continue to remain under the 'issuer non-cooperating category' since the time it was last rated in August 2019.

"The liquidity profile of the company continues to remain poor as evident from the considerable decline in its net cash accruals in the last two fiscals and net-worth erosion due to significant impairment of assets," ICRA had said.

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

Speaking of the power sector, it is interesting to note that the power exchanged in India is about 4.5% of the overall power production, as can be seen in the chart below:

As per Tanushree Banerjee, India's power sector is currently in transition. It is driven by increasing reliance on short-term contracts and electricity spot markets. This transition to the short-term market is happening due to quickly evolving industry dynamics.

Tanushree believes the Indian power sector will see a surge in spot power volumes due to certain factors.

In August 2020, Tanushree recommended a high quality stock from this space. Subscribers can read the report here (requires subscription).

If you are not a StockSelect subscriber, here's where you can sign up.

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


Indian Share Markets Open Lower; IndusInd Bank & Wipro Top Losers
09:30 am

Asian stock markets are trading on a negative note today as rising US Treasury yields again rattled equity investors while hoisting the dollar to a three-month high, which in turn dragged the Japanese yen to an eight-month trough.

The Nikkei is trading down by 2% while the Hang Seng is down 0.9%. The Shanghai Composite is trading on a flat note.

In US stock markets, Wall Street's main indexes dropped sharply on Thursday after Federal Reserve Chair Jerome Powell disappointed some investors by not indicating that the Fed might step up purchases of long-term bonds to hold down longer-term interest rates.

The 10-year Treasury yield jumped back above 1.5% following Powell's comments. The benchmark rate had stabilized earlier this week after a spike to 1.6% last week amid higher inflation expectations.

The Dow Jones Industrial Average ended lower by 1.1%. Meanwhile, the tech-heavy Nasdaq Composite tumbled 2.1%, taking it down about 10% from its record closing high on February 12 and putting it in correction territory.

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Back home, Indian share markets have opened on a negative note, following the trend on SGX Nifty and amid weak signals from Asian markets.

Heranba Industries is slated to list its shares on bourses today. The issue price has been fixed at Rs 627 per share. The issue was subscribed 83 times, with the retail investors portion getting subscribed 11 times.

The BSE Sensex is trading down by 279 points. Meanwhile, the NSE Nifty is trading lower by 83 points.

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

The BSE Mid Cap index has opened down by 0.2%. The BSE Small Cap index is trading higher by 0.4%.

Sectoral indices are trading on a mixed note with stocks in the oil & gas sector witnessing buying interest.

Banking stocks, finance stocks and metal stocks, on the other hand, are trading in red.

Shares of Adani Gas and Balrampur Chini hit their 52-week highs today.

The rupee is trading at 72.99 against the US$.

Gold prices are trading down by 0.4% at Rs 44,381 per 10 grams.

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Gold slumped to near nine-month low and is headed for a third straight weekly decline after Federal Reserve Chair Jerome Powell disappointed investors with his view on rising yields that pushed up the dollar and bond yields.

Speaking of stock markets, in his latest video for Fast Profits Daily, India's #1 trader Vijay Bhambwani talks about how inflation is affecting your money in the market and why you need to keep a close eye on it.

Tune in to the video below to find out more:

In news from the automobile sector, putting at rest all speculation around a partnership with Tesla, Tata Sons chairman N Chandrasekaran said on Wednesday that there is "no dialogue" with the Elon Musk-owned car company for a partnership in India.

"There is no dialogue with Tesla. With us, there is nothing," Chandrasekaran told as he spoke about the aggressive plans of Tata Motors and its British subsidiary Jaguar and Land Rover in the electric vehicles space.

The Tata Sons chief said products under Tata Motors and JLR have been performing well, and there is no need for any outside partner at this time.

Note that there have been widespread speculation in the media about an impending partnership between the Tata Group and Tesla as the latter is now entering the Indian market.

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The above news had also contributed to the spike in Tata Motors share price. But it had also moved up due to the strong performance of the company's car business in India.

Tesla has registered an office in India (Tesla Motors India & Energy Pvt Ltd) and this has been done in Bangalore. It is expected that the company is currently laying the groundwork.

Tata Group is going strong in electric vehicles business. Chandrasekaran said all electric products of JLR will be in India too.

We will keep you updated on all the latest developments 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.

Moving on to news from the IT sector, Wipro is among the top buzzing stocks today.

Wipro, in its biggest acquisition so far, has signed an agreement to buy London-based Capco, a global management and technology consultancy, for US$ 1.45 billion.

Capco provides digital, consulting and technology services to financial institutions in the Americas, Europe, and the Asia Pacific.

The deal is an all-cash one and will be funded through internal accruals and debt. The acquisition is subject to customary closing conditions and regulatory approvals and is expected to close in the June quarter.

Rishad Premji, chairman, Wipro, said, "With this deal we are joining select service providers that bring end-to-end consultative, digital cloud, and IT-driven solutions at scale to our customers. This deal will bring scale to Wipro's BFSI (banking financial services, and insurance) play."

The company said this acquisition would make Wipro one of the largest end-to-end global consulting, technology and transformation service providers to the banking and financial services industry.

It will add revenues of US$ 700 million and will see 5,000 technology and business consultants joining Wipro.

Wipro share price has opened the day down by 2%.

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


SGX Nifty Plunges 158 Points; Indicates Gap-Down Opening for Indian Stock Markets
SGX Nifty

The SGX Nifty opened on a negative note today.

At 8:10 am, it was trading down by 158 points, or 1.1% lower at 14,912 levels.

Trends on SGX Nifty indicate a gap-down opening for Indian stock markets.

Asian stock markets are trading on a negative note today as rising US Treasury yields again rattled equity investors while hoisting the dollar to a three-month high, which in turn dragged the Japanese yen to an eight-month trough.

China restored its annual economic growth target, setting it at above 6%, and pledged to create more jobs in cities than last year, as the world's second-biggest economy emerged from a year disrupted by the effects of Covid-19.

The Nikkei is trading down by 1.7% while the Hang Seng is down 2.1%. The Shanghai Composite is trading lower by 1.3%.

In US stock markets, Wall Street's main indexes dropped sharply on Thursday after Federal Reserve Chair Jerome Powell disappointed some investors by not indicating that the Fed might step up purchases of long-term bonds to hold down longer-term interest rates.

The 10-year Treasury yield jumped back above 1.5% following Powell's comments. The benchmark rate had stabilized earlier this week after a spike to 1.6% last week amid higher inflation expectations.

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The Dow Jones Industrial Average ended lower by 1.1%. Meanwhile, the tech-heavy Nasdaq Composite tumbled 2.1%, taking it down about 10% from its record closing high on February 12 and putting it in correction territory.

US stock futures are trading lower today indicating a negative opening for Wall Street indices. Dow Futures are trading down by 146 points while Nasdaq futures are down 0.9%.

All eyes will be on February jobs report, which is set to be released later today. Economists expect to see that 210,000 payrolls were added in February, compared to just 49,000 in January.

Crude oil prices rose today, adding to big gains overnight after OPEC and its allies agreed to not increase supply in April as they await a more solid recovery in demand from the coronavirus pandemic.

Here are the key events due later today:

  • US - Non-Farm Payrolls & Unemployment Rate
  • Germany - Factory Orders
  • India - Forex Reserves

Back home, Adani Ports & SEZ and Welspun India will be among the top buzzing stocks today.

In his latest video for Fast Profits Daily, India's #1 trader Vijay Bhambwani talks about how inflation is affecting your money in the market and why you need to keep a close eye on it.

You can watch the video here: Inflation & Your Investments

To know the top cues in today's stock market session, check out the pre-open commentary here.

Stay tuned for more updates on Indian stock markets in the upcoming commentary.


Indian Oil Corporation Asset Monetisation Plan, MTAR and Easy Trip Planners IPO, and Buzzing Stocks Today
Pre-Open

Indian share markets witnessed huge selling yesterday and ended their day deep in the red.

Benchmark indices broke their three-day winning streak yesterday on the back of selling seen in the metal stocks.

At the closing bell yesterday, the BSE Sensex stood lower by 598 points (down 1.2%). Meanwhile, the NSE Nifty ended down by 164 points (down 1.1%).

UltraTech Cement was among the top gainers.

JSW Steel and HDFC, on the other hand, were among the top losers.

The BSE Mid cap index and the BSE Small cap index ended up by 0.5% and 0.8%, respectively.

On the sectoral front, metal stocks, banking stocks and finance stocks were among the hardest hit.

Shares of UltraTech Cement and Dilip Buildcon hit their respective 52-week highs yesterday.

At 8:00 am today, the SGX Nifty was trading down by 167 points, or 1.1% lower at 14,905 levels. Indian share markets are headed for a gap-down opening today following the negative trend on SGX Nifty.

Gold prices for the latest contract on MCX were trading down by 0.3% at Rs 44,835 per 10 grams at the time of closing stock market hours yesterday.

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Speaking of the stock markets, Brijesh Bhatia, Research Analyst at Equitymaster, discusses why he thinks there is a possibility of the rupee falling to Rs 80 against the dollar in 2021, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

Top Stocks in Focus Today

Among the buzzing stocks today will be Welspun India.

Home textiles major Welspun India's board has approved raising up to US$ 100 million (approximately Rs 7.5 billion) in one or more tranches.

The board of directors approved raising or borrowing up to a maximum of US$ 100 million in one or more form of instruments, including but not limited to loans, ESG Bonds, nonconvertible debentures (NCDs), etc.

The money may be raised in form of domestic or overseas issuance in one or more tranches.

Adani Ports & SEZ share price will also be in focus today.

Adani Ports and Special Economic Zones has agreed to buy a Rs 19.54-billion stake in Gangavaram Port (GPL) from Warburg Pincus.

Adani Ports is acquiring about 163 million shares at Rs 120 apiece, which works out to Rs 19.54 billion.

Windy Lakeside Investment, an affiliate of the private equity firm, will sell its 31.5% in the port to the Adani Group firm, according to an exchange filing.

Adani Ports is also in talks with promoters DVS Raju and Family for their 58.1% stake (about 300 million shares) in the port. The remaining 10.4% is held by the Government of Andhra Pradesh.

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Indian Oil Corporation Planning to Monetise Pipeline Assets

In news from the energy sector...

As per an article in The Economic Times, Indian Oil Corporation (IOC) is planning to monetise its hydrogen-producing facilities to raise about Rs 100 billion.

The nation's largest oil refiner is aiming to hive off some of its hydrogen-producing units and sulphur recovery facilities at its refineries to a separate entity and sell stakes in it to one or more private companies.

The company has proposed the idea to the government, which is studying it. The plan to monetise the hydrogen-producing facilities was in response to the government's proposal to sell stakes in oil and gas pipelines of IOC, GAIL and HPCL.

The government expects IOC, GAIL and HPCL to raise Rs 170 billion by selling stakes in their pipelines through the infrastructure investment trust route in the next financial year. Of this, Rs 80 billion is targeted from Indian Oil's pipelines and the remainder equally from GAIL and Hindustan Petroleum.

Indian Oil's executives are of the view that monetisation of some of its hydrogen-producing units can help generate Rs 100-120 billion, although it would mean selling a significant stake in them to private companies.

We will keep you updated on all the developments from this space. Stay tuned.

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IPO Buzz: MTAR Technologies IPO Gets 8x Bids; EaseMyTrip IPO to Open Next Week

Hyderabad-based MTAR Technologies which opened its Rs 5.96-billion initial public offering (IPO) this week was subscribed 8.6 times yesterday.

The offer received bids for 6.2 crore equity shares at the time of closing stock market hours yesterday against the IPO size of 72.60 lakh equity shares. The IPO size has been reduced to 72.60 lakh shares from over 1.03 crore shares after the closing of the anchor book through which the company raised Rs 1.7 billion.

The portion reserved for retail investors was subscribed 14 times and that of non-institutional investors 6.2 times, while the qualified institutional buyers put in 77% bids against their reserved portion.

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.

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

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.

In other news, Delhi based online travel agency Easy Trip Planners plan to raise Rs 5.1 billion through an initial public offering (IPO). The issue opens for subscription on March 8, 2021, and closes on March 10, 2021.

The company aims to raise R 5.1 billion through its public issue which is a complete OFS. Promoters Nishant Pittie and Rikant Pittie, holding 49.8% and 49.7% respectively in the company, will sell up to Rs 2.5 billion worth of shares each.

The company and selling shareholders in consultation with merchant bankers will decide the price band and the minimum bid today (March 3, 2021) and the anchor book will open on Friday (March 5, 2021).

EaseMyTrip.com is operated by Easy Trip Planners Private Limited.

For the calendar year 2021, Easy Trip will be the tenth issue, after Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft, Brookfield India REIT, Nureca, RailTel Corporation of India, Heranba Industries and MTAR Technologies.

How the above IPOs sail through remains to be seen. Meanwhile, stay tuned for more updates from this space.

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