Sensex Rallies 584 Points; Kotak Mahindra Bank & HDFC Bank Among Top Nifty Gainers
Closing

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

Investor sentiment turned positive amid global economic recovery prospects and the passage of a US$ 1.9 trillion stimulus bill.

US treasury secretary Janet Yellen had said on Monday that President Joe Biden's coronavirus aid package would provide enough good resources to fuel a 'very strong' US economic recovery.

Investor nerves also calmed a bit after the US labor department reported stronger than expected jobs data for February.

At the closing bell, the BSE Sensex stood higher by 584 points (up 1.2%).

Meanwhile, the NSE Nifty closed higher by 142 points (up 1%).

Kotak Mahindra Bank and HDFC Bank were among the top gainers today. ONGC and Power Grid, on the other hand, were among the top losers today.

The SGX Nifty was trading at 15,150, up by 183 points, at the time of writing.

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The BSE Mid Cap index and the BSE Small Cap index ended down by 0.7% and 0.4%, respectively.

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

Metal stocks and oil & gas stocks, on the other hand, witnessed selling pressure.

Market participants were tracking shares of Mindtree and Thermax as they hit their respective 52-week highs today.

Market participants were also tracking Tata Steel share price and Tata Steel PP share price.

While dismissing a petition for staying a move to recover income tax and interest of Rs 12.2 billion for the years 2009-10 to 2014-15, the Income Tax Appellate Tribunal was particularly not amused that Tata Steel rushed to it directly only when the IT department wanted to adjust a due refund of Rs 4.4 billion against the money it wanted to recover as past dues.

Asian share markets recovered from earlier losses, lifted by firmer US equity futures and central bank comments aimed at soothing fears about rising by inflation. A pullback in US bond yields also buoyed equity markets.

The Shanghai Composite stood lower by 1.8% while the Nikkei ended up by 1%. The Hang Seng ended higher by 0.5%.

US stock futures are trading higher today indicating a positive opening for Wall Street indices with the Dow Futures trading up by 201 points (up 0.6%).

The rupee is trading at 72.89 against the US$.

Gold prices for the latest contract on MCX are trading up by 0.7% at Rs 44,520 per 10 grams.

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Speaking of stock markets, in his latest video for Fast Profits Daily, India's #1 trader Vijay Bhambwani explains why you shouldn't go long on crude oil and in fact you can actually short crude oil.

Tune in to the video below to find out more:

In news from the automobile sector, retail sales of passenger vehicles rose by 10.6% in February 2021 to 2,54,058 units from 2,29,734 units in the year ago period, while two-wheeler sales dropped by 16.1% to 10,91,288 units from 13,00,364 units in the corresponding period last year.

While the tractor segment reported 18.9% growth in sales, the CV segment saw a fall of by 29.5%, according to data from the Federation of Automobile Dealers Associations (FADA), the apex body of the automobile industry in India.

Automobile registrations across the country dropped by more than 13% in February, said FADA.

FADA said that the passenger vehicle waiting period continued to remain as high as 8 months as scarcity of semi-conductors continued to linger around.

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FADA President, Vinkesh Gulati, said that while tractors continued to outperform the broader market, passenger vehicles witnessed double digit growth on a low base of last year as India started transitioning from BS-IV to BS-VI emission norms.

FADA urged the government to hold diplomatic discussions with countries manufacturing semi-conductors so that the momentum which was built thus far in automobile sales is not lost and automobile industry continues to fuel the recovery process.

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

Moving on to stock specific news...

SBI Life Insurance was among the top buzzing stocks today.

Shares of SBI Life Insurance gained 5% to hit a 52-week high of Rs 984 after reporting more than 60% growth in new business premiums (NBP) in the month of February. NBP is the premium acquired from new policies for a particular year.

February 2021 saw life insurers recording 21% growth in NBP to Rs 224.3 billion, compared with Rs 185.3 billion in the same period a year ago.

Life Insurance Corporation of India (LIC) recorded 24% growth in NBP to Rs 129.2 billion, compared with Rs 104.1 billion.

Private insurers, on the other hand, saw their NBP growing 16% in February to Rs 95.1 billion compared with Rs 81.3 billion.

SBI Life remained the largest private insurer in terms of individual weighted received premium (WRP) YTD during FY21. On an un-weighted basis, the company was also the largest private insurer with a market share of 7.7%.

SBI Life Insurance share price ended the day up by 5%.

Moving on to news from the defence sector, shares of BEML witnessed selling pressure today.

Tata Motors, Ashok Leyland and Mahindra and Mahindra (M&M) are among at least six companies looking to buy the government's 26% stake in state-run defence and construction equipment manufacturer BEML.

Besides, Bharat Forge and Megha Engineering and Infrastructure are also likely to submit Expression of Interest (EoI) for acquiring a stake in the company.

The Department of Investment and Public Asset Management had in January invited EoI to offload its 26% stake in BEML. The government currently holds a 54% stake in BEML.

SBI Capital Markets has been appointed as the transaction advisor for managing the disinvestment process on behalf of the government.

With the stake sale, management control of BEML will also be transferred to the successful bidder. The deadline for submission of EoI was March 1, 2021, which was later extended to March 22, 2021.

The government has set a disinvestment target of Rs 1.75 lakh crore for FY22.

BEML, previously Bharat Earth Movers, is an Indian Public Sector Undertaking, with headquarters in Bengaluru, Karnataka, India. It manufactures a variety of heavy equipment, such as that used for earthmoving, transport and mining.

BEML operates under three major business verticals - defence and aerospace, mining and construction, and rail and metro.

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

Speaking of the defence sector, have a look at the chart below which shows the top 5 military spending countries in the world as of 2019:

According to a SIPRI (Stockholm International Peace Research Institute) report, India was the third largest military spending country in the world in 2019.

Here's what we wrote about it in one of the editions of Profit Hunter:

  • If you look at the chart closely, you will realise it is likely to remain among the top spenders in the coming years.

    It's because of the second largest spender shown in the chart, China.

    With rising tensions between the two countries, the incentive is strong for India to keep up with China.

    It all makes sense for the government to focus on this sector in a big way in the near future.

    The government's 'Atmanirbhar' push will get a massive boost through local defence manufacturing. This will create profitable opportunities in defence stocks for astute investors.

Co-head of Research at Equitymaster, Tanushree Banerjee keeps a close watch on stocks in the defence space. As per Tanushree, defence will be a big wealth-creating opportunity.

Back in June 2020, she recorded a video about India's best defence stocks.

You can watch the video here: The Upside in India's Best Bulletproof Defence Stocks.

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 Up by 165 Points
12:30 pm

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

The BSE Sensex is trading up by 299 points, up 0.6% at 50,739 levels.

Meanwhile, the NSE Nifty is trading up by 80 points.

SBI Life and Grasim Industries are among the top gainers today. BPCL and GAIL are among the top losers today.

The BSE Mid Cap index is trading down by 0.2%.

The BSE Small Cap index is trading up by 0.2%.

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

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

US stock futures are trading higher today, indicating a positive opening for Wall Street.

Nasdaq Futures are trading up by 96 points (up 0.8%) while Dow Futures are trading up by 165 points (up 0.5%)

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The rupee is trading at 73.14 against the US$.

Gold prices are trading up by 0.4% at Rs 44,390 per 10 grams.

In global markets, gold prices edged higher but gains were capped amid a stronger US dollar and higher US Treasury yields. The US benchmark bond yields hovered around a 12-month high on concerns that the government massive stimulus package will stoke inflation.

Gold prices in India edged higher today after a slump in the previous session. On MCX, gold futures were up 0.3% to Rs 44,360 per 10 grams, after falling to Rs 44,150 in the previous session.

Note that gold prices have fallen to near 11-month lows in India after being in a downtrend since hitting a record high of Rs 56,200 in August. And from the start of this year, gold is down about Rs 5,500 per 10 grams.

Speaking of the precious yellow metal, how lucrative has gold been as a long-term investment in India?

The chart below shows the annual returns on gold over the last 15 years...

As you can see, barring just two years - 2013 and 2015, gold has delivered positive returns in 13 of the last 15 years.

The recent price volatility in the bullion market has rattled many traders. Even with the recent volatility in prices, gold remains among the best performing commodities this year to combat the fallout from the coronavirus pandemic.

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

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Moving on to stock specific news...

Among the buzzing stocks today is BEML.

Tata Motors, Ashok Leyland and Mahindra and Mahindra are among at least six companies looking to buy the government's 26% stake in state-run defence and construction equipment manufacturer BEML.

Besides, Bharat Forge and Megha Engineering and Infrastructure are also likely to submit Expression of Interest (EoI) for acquiring a stake in the company.

The Department of Investment and Public Asset Management had in January invited EoI to offload its 26% stake in BEML. The government currently holds a 54% stake in BEML.

SBI Capital Markets has been appointed as the transaction advisor for managing the disinvestment process on behalf of the government.

With the stake sale, management control of BEML will also be transferred to the successful bidder. The deadline for submission of EoI was March 1, 2021, which was later extended to March 22, 2021.

The government has set a disinvestment target of Rs 1.75 lakh crore for FY22.

BEML, previously Bharat Earth Movers Limited, is an Indian Public Sector Undertaking, with headquarters in Bengaluru, Karnataka, India. It manufactures a variety of heavy equipment, such as that used for earthmoving, transport and mining.

BEML operates under three major business verticals -- defence and aerospace, mining and construction, and rail and metro.

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

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At the time of writing, shares of BEML were trading up by 2.4% on the BSE.

Speaking of stock markets, India's #1 trader, Vijay Bhambwani talks about why you should be wary of the new and exciting metals  supercycle theory, in his latest video for Fast Profits Daily.

Tune in here to find out more:

In news from the power sector, market participants are tracking shares of NTPC.

State-run power giant, NTPC on March 7, 2021, announced a special recruitment drive for women executives on the eve of Women's Day.

The recruitment drive includes plans for recruiting only women executives across its areas of operations. The company believes that this will empower women and enhance gender diversity as parameter for it.

Share of NTPC are currently trading down by 1.2%.

Moving on to news from the mining sector...

Coal India Approved 32 Mining Projects till January In FY21

State-owned Coal India on March 8, 2021, said its board has approved 32 coal mining projects till January 2021, indicating an incremental capital of around Rs 473 billion.

While 24 of the 32 projects are an expansion of the existing ones, the remaining are greenfield (new) units, Coal India (CIL) said in a statement. "Scripting a record high...Coal India has approved 32 coal mining projects in the current fiscal till January 2021," the PSU said.

The combined incremental peak capacity of these projects is projected at 193 million tonnes per annum (MTPA). This will be in addition to the already sanctioned capacity of 303.5 MTPA.

Of the 193 MTPA capacity of 32 projects, Coal India's three subsidiaries South Eastern Coalfields (SECL), Central Coalfields (CCL) and Mahanadi Coalfields (MCL), with 167 MTPA, form the bulk at 86.5%. SECL with six projects at an estimated incremental investment of Rs 186.6 billion accounts for 63.5 MTPA, followed by CCL at an investment of Rs 75.2 billion for 10 projects of 56.6 MTPA.

MCL with three projects would add up to 47 MTPA at an investment of Rs 140.6 billion. The rest, nearly 26 MTPA, would be met through Eastern Coalfields, Northern Coalfields and Western Coalfield with the remaining investment between them.

CIL accounts for over 80% of the domestic coal output.

How these expansion projects pan out remain 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.


Sensex Zooms 500 Points; Grasim Industries & HDFC Bank Top Gainers
09:30 am

Asian share markets are trading on a mixed note tracking a mixed Wall Street session following a big downturn in tech shares.

Stocks fell despite prospects of global recovery and the passage of a US$1.9 US trillion stimulus bill.

The Nikkei is trading up by 1% while the Hang Seng is up 1.3%. The Shanghai Composite is trading lower by 0.2%.

In US stock markets, Wall Street indices settled on a mixed note. The Dow Jones Industrial Average rose 306 points, or 1% while the Nasdaq Composite dropped 311 points, or 2.4%.

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

The BSE Sensex is trading up by 461 points. Meanwhile, the NSE Nifty is trading higher by 138 points.

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

Both, the BSE Mid Cap index and the BSE Small Cap index have opened higher by 0.7%.

Barring oil & gas stocks, all sectoral indices are trading in green with stocks in the finance sector and banking sector witnessing most of the buying interest.

The rupee is trading at 73.18 against the US$.

Gold prices are trading up by 0.3% at Rs 44,351 per 10 grams.

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Crude oil prices rose today on expectations of a recovery in the global economy after US Senate approval of a US$ 1.9 trillion stimulus bill and on a likely drawdown in crude oil inventory in the United States.

Note that Brent crude futures surged above US$ 70 a barrel on Monday for the first time since the Covid-19 pandemic began, while US crude touched its highest in more than two years, following reports of attacks on Saudi Arabian facilities.

Speaking of crude oil, in his latest video for Fast Profits Daily, India's #1 trader Vijay Bhambwani explains why you shouldn't go long on crude oil and in fact you can actually short crude oil.

Tune in to the video below to find out more:

In news from the telecom sector, as per an article in The Economic Times, the government is likely to amend the telecom licence norms this month to incorporate the guidelines of national security directive on telecommunication sector that will help in controlling installation of network equipment from China and other non-friendly countries.

Here's an excerpt from the article:

  • Under the provisions of this directive, the government will declare a list of trusted sources and trusted products for installation in the country's telecom network.

    "DoT is almost ready to amend licence conditions to incorporate guidelines NSD (national security directive). It should be done in the coming week."

The list of the trusted source and product for installation in telecom networks will be decided based on the approval of a committee headed by the deputy national security advisor.

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While the government has not barred procurement of equipment from Chinese companies, it amended the general financial rules (GFR) 2017 to enable the imposition of restrictions on bidders in public procurement from countries that share a land border with India on grounds of defence of India, or matters directly or indirectly related thereto, including national security.

In other news from the telecom sector, the telecom department has sent notices to Reliance Jio, Bharti Airtel and Vodafone Idea, demanding around Rs 219.2 billion as upfront payment for spectrum bought in the just ended auctions. The carriers need to pay up in 10 working days.

In the 4G spectrum auctions ended on March 2, the government sold airwaves worth Rs 778.14 billion, or 37% of the over 2308 MHz of spectrum of sale.

Jio and Bharti Airtel bulked up on crucial airwaves to cater to the surge in data usage and future-proof themselves ahead of 5G rollouts, while Vodafone Idea bought spectrum needed to beef up its 4G holdings.

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

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In news from the steel sector, market participants are tracking shares of Tata Steel and Tata Steel PP.

While dismissing a petition for staying a move to recover income tax and interest of Rs 12.2 billion for the years 2009-10 to 2014-15, the Income Tax Appellate Tribunal was particularly not amused that Tata Steel rushed to it directly only when the IT department wanted to adjust a due refund of Rs 4.4 billion against the money it wanted to recover as past dues.

Shares of Tata Steel have opened the day up by 1.4%.

Moving on to news from the FMCG sector, Hindustan Unilever (HUL) is among the top buzzing stocks today.

HUL will eliminate the word 'normal' from packaging and advertising of all its beauty and personal care brands to demolish stereotypes as consumer activism and awareness towards building an inclusive society takes centre stage the world over.

India's largest packaged consumer goods company, which makes marquee beauty brands including Dove, Lifebuoy, Axe and Sunsilk, will remove 'normal' from its communication as part of the worldwide drive by its parent Unilever.

HUL's executive director, Priya Nair said the decision to remove 'normal' is one of the many steps they are taking to challenge narrow beauty ideals.

Citing data from extensive research by Unilever, Nair said that in India, over eight in ten people think that using the word 'normal' on beauty products has a negative impact.

In addition to removing 'normal', HUL has also decided to not digitally alter a person's body shape, size, proportion or skin color in its brand advertising.

Last year in July, HUL had dropped the word 'fair' from its biggest skincare brand Fair & Lovely and renamed it Glow & Lovely amidst global outage and anti-racism protests.

The face care segment in India is estimated at Rs 100 billion with HUL leading the category with 43% share.

HUL share price has opened the day up by 0.5%.

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.

We are keeping a close eye on FMCG stocks and will keep you updated on all the news from this space. Stay tuned!

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


SGX Nifty Trades Higher, Mutual Fund Buying Activity in February, Easy Trip Planners IPO, and Buzzing Stocks Today
Pre-Open

Indian share markets ended their day on a flat note yesterday.

At the closing bell yesterday, the BSE Sensex stood higher by 35 points (up 0.1%).

Meanwhile, the NSE Nifty closed higher by 18 points (up 0.1%).

GAIL and UPL were among the top gainers.

IndusInd Bank was among the top losers.

The BSE Mid Cap index ended up by 0.3%. The BSE Small Cap index ended up by 0.6%.

Sectoral indices ended on a mixed note. Gains were largely seen in the capital goods sector and energy sector.

At 8:05 am today, the SGX Nifty was trading up by 96 points, or 0.6% higher at 15,080 levels. Indian share markets are headed for a firm opening today following the positive trend on SGX Nifty.

Gold prices for the latest contract on MCX were trading down by 0.6% at Rs 44,403 per 10 grams at the time of closing stock market hours yesterday.

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Speaking of stock markets, India's #1 trader, Vijay Bhambwani talks about why you should be wary of the new and exciting metals supercycle theory, in his latest video for Fast Profits Daily.

Tune in here to find out more:

Top Stocks in Focus Today

Among the buzzing stocks today will be Adani Ports & SEZ.

Windy Lakeside Investment, a unit of private equity firm Warburg Pincus, will invest Rs 8 billion for a 0.5% stake in Adani Ports and Special Economic Zone (APSEZ), the latter confirmed in a regulatory filing on March 7, 2021.

The Board of Directors of APSEZ took the decision to issue up to 10 million equity shares to Windy Lakeside Investment (Windy) at a price of Rs 800 per equity share (at a premium of Rs 798 per equity share), for an aggregate consideration of up to Rs 8 billion, APSEZ said in the notice issued to the exchanges.

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Apart from this, the board approved the issue of notice convening an extraordinary general meeting (EGM) of the shareholders of the company to be held on April 6, 2021 through video conferencing.

Aarti Drugs share price will also be in focus today as a wholly owned unit of the bulk drugmaker received an approval accorded under India's scheme to offer incentives to boost local pharma ingredients capacity.

Aarti Specialty Chemicals has received approval for 2-methyl-5-nitro-imidazole, with a committed production capacity of 4,000 million tonnes per annum, under the production-linked incentive scheme, according to an exchange filing on Monday.

The rate incentive will be 10% of the total sales value per annum for a period of six years. The approval will be valid until FY28.

Market participants will also track Titan share price today as India's largest watch maker on Friday introduced a range of products under its youth centric Fastrack brand, expanding offerings in the wearables segment as well as entering the audio accessories market as it plans to corner a bigger share in the country's growing market for wearables and audio products.

Fastrack Reflex was launched in 2017, marking its entry into the smart wearable devices. Fastrack by Titan is largely targeted towards younger consumers or GenZ.

On Friday, the company announced multiple launches -- Fastrack Reflex 3.0 smart bands, Fastrack Reflex 2C Pay -- a fitness band that enables contactless payments in association with YONO SBI, and smart audio accessories under Fastrack Reflex Tunes.

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Mutual Funds Pull Out Rs 163 Billion from Equities in February

In news from the mutual funds space...

Mutual funds pulled out Rs 163.1 billion from equities in February, making it the ninth consecutive monthly outflow as small investors booked profit amid a rally in stock markets.

Overall, mutual funds withdrew a net amount of over Rs 564 billion in 2020, data available with the markets regulator showed.

According to the data, MFs have been continuously withdrawing money from equities since June 2020 and pulled out over Rs 1.24 lakh crore till February.

On a month-on-month basis, MFs withdrew Rs 163.1 billion from equities in February, 130.3 billion in January, Rs 264.3 billion in December, Rs 307.6 billion in November, Rs 144.9 billion in October, Rs 41.3 billion in September, Rs 92.1 billion in August, Rs 92 billion in July and Rs 6 billion in June.

However, they have invested over Rs 402 billion in the first five months (January-May) of 2020. Of this, Rs 302.9 billion was invested in March last year.

On the other hand, mutual funds invested Rs 81.6 billion in debt markets in the month under review.

The surge in markets, despite the withdrawals from mutual funds in the last few months, has continued to rise on robust flows from FPIs.

Benchmarks Sensex and Nifty have risen over 70% from their lows of March 2020 till date, while the BSE Midcap index has risen 95% and BSE Smallcap index rose over 120% in the same period.

Foreign Portfolio Investors (FPIs) have put in Rs 257.9 billion in the Indian stock markets in February after investing Rs 194.7 billion in January and Rs 1.7 lakh crore in the entire 2020.

How this trend pans out in the coming months remains to be seen. Meanwhile, we will keep you updated on the latest developments from this space. Stay tuned.

Easy Trip Planners IPO: Company Raises Rs 2.2 Billion from Anchor Investors

In latest developments from the IPO space...

Delhi based online travel agency Easy Trip Planners kicked off its Rs 5.1-billion initial public offering (IPO) for subscription yesterday.

The online travel company on Friday raised a little over Rs 2.2 billion from anchor investors, ahead of its initial share-sale.

A total of 1,22,72,727 shares have been allocated to 35 anchor investors at Rs 187 per share, which is the upper end of the price band.

Among the investors that have been allocated shares are HSBC Global Investment Funds, Nomura Funds Ireland Public Limited Company, Tata Trustee Company, Aditya Birla Sunlife Insurance Company, Sundaram Mutual Fund, Bajaj Allianz Life Insurance Company and Nippon Life India Trustee Company.

The issue closes for subscription on March 10, 2021.

The company aims to raise Rs 5.1 billion through its public issue which is a complete offer-for-sale (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.

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 IPO sails 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.