Hemang Jani, Head Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services
Nifty and Sensex were down 1.25 percent today despite positive statements by US Fed on the interest rate outlook and continuance of accommodative policy. The Indian market has been in a corrective phase for the past 10 days, due factors like high bond yields in US, slew of QIPs and IPOs taking away liquidity from the system and an increased no of COVID cases being reported across the country. The market may remain dull over in the near term but once the Q4 earning previews start flowing in there would be a renewed interest by market participants.
Ajit Mishra, VP – Research, Religare Broking
Markets swung both ways and finally ended with a cut of more than a percent. The benchmark witnessed gap up opening on the back of positive global cues as the US Fed kept the interest rate unchanged and maintained the dovish stance, which boosted the investors’ sentiment. However, the gains fizzled in the latter half, citing profit-taking in the global markets and continuous rise in the COVID cases.
With all the major events behind us, global cues and COVID updates will dictate the trend. Nifty tested the critical support at 14,500 today and its breakdown will pave the way for further decline. Traders should maintain extra caution and limit leveraged positions.
Manish Shah, Founder, Niftytriggers.com
Nifty has shown six red candles in a row as Nifty has declined for five consecutive days of lower close. Nifty does now seems to be getting streached on the lower side and we can expect a bounce bank that may last for a couple of days.Nifty moves in a range between of 14,450-15,430 since mid-February 2021. When we look at price action we see a range bound action and this could be a rectangle a possible continuation pattern. If the support a 14,350-14,450 holds should be seeing a rally to 15,250. Buy at support could be the best reward to risk trade that a trader can hope for.
Market At Close
– Market Erases Gains, Ends With Deep Cuts Amid Rising US Bond Yields, Rising COVID Cases
– Nifty 300 Points Off Highs, Ends Near 3-week Low, At 14,558
– Sensex Gives Up All Gains Since Budget Day, Ends At 49,216
– Nifty Bank At Over 6-Week Low, Dragged Most By ICICI Bank & Kotak Mahhindra Bank
– ITC, Bajaj Auto, Hindalco End As Top Gainers While IT & Pharma Stocks Top Losers
– Bharti Turns +ve After Announcing TPG’S Investment In Airtel Africa’s Mobile Money Business
– Morgan Stanley Initiates Coverage On ITC; Stock Ends 4% Higher
– Amendment In Bajaj Auto’s Dividend Distribution Policy Sends Stock 3% Higher
– Most Large Cap Auto Stocks Higher After Gadkari’s Comments On Scrappage Policy
– Midcap Index Ends Lower For 3rd Session; Advance-Decline Ratio At 1:5
Closing Bell | Indian equity indices ended more than 1 percent lower Thursday as a rise in US bond yields spooked investors.The Sensex declined 585.10 points, or 1.17 percent to end at 49,216.52, while the Nifty closed at 14,557.85, down 163.45 points, or 1.11 percent. Selling was witnessed in IT, banks and financial stocks, while metal and FMCG indices ended in the green Small and midcap indices closed over 1 percent lower each.
On the Nifty50, HCL Technologies, Infosys, Divi’s Laboratories,Dr Reddy’s Laboratories and Hero MotoCorp led the losses, while ITC, Bajaj Auto, Hindalco Industries, Grasim Industries and Bharti Airtel were the top gainers.
The Rise Fund to invest $200 million in Airtel Africa’s mobile money business
Airtel Africa announced the signing of an agreement under which The Rise Fund, the global impact investing platform of leading alternative investment firm TPG, will invest $200 million in Airtel Mobile Commerce BV, a wholly owned subsidiary of Airtel Africa plc.
Yes Securities on Suryoday Small Finance Bank IPO
Suryoday Small Finance Bank’ IPO pricing at 2.1x current P/ABV (post-money) is at par with listed larger like Equitas Small Finance Bank and Ujjivan Small Finance Bank. However, considering the gaps in the franchise and execution capabilities (management depth), we believe that IPO valuation is relatively unattractive. Suryoday SFB does not face any regulatory overhang (no promoter holding co. and promoter shareholding well below 40%) like Equitas and Ujjivan, but the latter can hope for respite with a recent RBI’s Internal Working Group report discussing harmonization of guidelines (convergence to new guidelines) and a non-mandatory NOFHC structure if there is no other group entity and allowance for reverse merger in such cases.
Varroc Engineering | The company has entered into an arrangement with Canada-based Delta-Q Technologies Corp for contract manufacturing of battery chargers in India.
Bullish on aviation sector with eye on valuations: Avendus Capital’s Vaibhav Sanghavi
Its the season of tapping into the markets as companies cue up to make their Dalal Street debut by launching their respective Initial Public Offerings (IPOs). How does this augur for the aviation sector? Avendus Capital’s Vaibhav Sanghavi helped read the situation.
Talking about IPO in the airline industry he said, “It is a great time for IPOs and from airline industry perspective one of the biggest variables we all know is the prices of oil and the sentiment around that kind of keeps on getting impacted. As I said what are the valuations they are probably coming at and then probably one needs to take a call.” Continue reading.
Fed has done well in laying out much clearer framework, says Deutsche Bank’s Sameer Goel
The much-awaited Federal Open Market Committee or FOMC meeting is over. The action as expected was a pause and a promise of a long pause at that. The FOMC statement said in 3 places that it wants US inflation to remain over 2 percent for a period of time before it changes its view. It sees inflation at 2.4% this year, 2% next year and 2.1% in 2023.
Despite this, the FOMC believes the Fed rate of 0.25% is appropriate. But as of now financial markets are still iffy and skittish. But will they settle down and will equities restart their rally given the Fed’s improved GDP outlook or will bonds continue to be another for the bulls. Read more.
I reject thesis of being bullish in PSUs, says Helios Capital’s Samir Arora
Worries in relation to rising bond yields may be getting over soon as it is clear that the US Fed will not raise interest rates this year, said Helios Capital’s Samir Arora on Thursday. The Fed is indicating they are staying the course and has shown no panic, he added. “In relation to bonds, I think those worries may be over soon or getting over,” he told CNBC-TV18. Arora also said that themes like financials, consumer & tech have potential. The valuations of key stocks in us much lower than those in India. Watch here.
Adani Green Energy | The company has raised $1.35 billion senior debt facility with participation from 12 international banks to finance its under-construction renewable portfolio. It would initially finance the 1.69 GW hybrid portfolio of solar & wind renewable projects to be setup in 4 SPVs in Rajasthan.
Edelweiss Financial Services | The company has clarified that Edelweiss Asset Reconstruction Company has not received any intimation on any inspection by the Ministry of Corporate Affairs. ‘We deny each and every allegation, contention in media report. CDPQ continues to hold CCPS contrary to what is stated in media reports,’ the company said.
ABB Power Products bags BALCO order; sees big opportunities from Railways
ABB Power Products & Systems in focus after it received a Rs 124 crore project for Bharat Aluminium Company’s Chhattisgarh Plant. N Venu, CEO & MD of the company said that BALCO is a key strategic client for them and they are supplying state the artfully engineered 400 kilovolts (KV) gas-insulated switchgear (GIS) substation to them.
“The 400 kilovolt (KV) gas-insulated switchgear (GIS) order from BALCO, which is our industrial customer is a key strategic order for us. We continue to serve utilities, but also focus on industries, infrastructure, and new segments such as data centres. So, this is exactly fitting into our strategy,” he said in an interview with CNBC-TV18. Read more.
Just In | US 10-year Treasury yield rises to 1.712%, highest since January 2020.
Shapoorji Pallonji Real Estate to invest Rs 300 cr to build 440 flats in Bengaluru
Shapoorji Pallonji Real Estate will invest Rs 300 crore to construct around 440 luxury apartments in Bengaluru. The company has launched a new phase of its 46-acre luxury residential project Parkwest in Binnypet, Central Bengaluru. The new phase will have around 440 luxury apartments, ranging from 462.10 sq ft to 1,185.07 sq ft. The residences are available between the price range of Rs 72 lakh to Rs 2.06 crore. Read here.
Transport Minister @nitin_gadkari says India will be an automobile manufacturing hub in 5 years.
He says the draft scrappage policy will be in public domain for 30 days & makes an appeal to MPs to switch to electric & bio fuels pic.twitter.com/cNf7xGvHzv
— CNBC-TV18 (@CNBCTV18Live) March 18, 2021
Suryoday Small Finance Bank IPO sees lukewarm response; issue subscribed 67% on day 2 so far
The initial public offering (IPO) of Suryoday Small Finance Bank received a lukewarm response even on day 2 of bidding. The issue was subscribed 67 percent so far on March 18 after witnessing a 44 percent subscription on Day 1. The IPO will close on March 19 (Friday). Investors put in bids for only around 1.2 crore equity shares against the offer size of 1.9 crore shares.
The portion reserved for retail investors was the only one oversubscribed. Retail investors bid for 1.36 times their quota whereas non-institutional investors bid for 7 percent and employees subscribed 9 percent of their quota. Meanwhile, qualified institutional buyers have not yet started to bid for their quota.
Nazara Technologies IPO Day 2: Issue subscribed 5.8 times so far; retail portion booked 23 times
The initial public offering (IPO) of Nazara Technologies has been subscribed 5.82 times so far on March 18 (Thursday), the second day of the bidding. The offer has received bids for 1.69 crore equity shares against the IPO size of 29.20 lakh equity shares, as per the subscription data available.
Retail investors have shown a strong response to the issue as their reserve portion has been subscribed 23 times, while that of non-institutional investors is subscribed 4.70 times. The employees’ portion is booked 2.70 times. The company has reserved shares worth Rs 2 crore for its employees. The reserved portion for Qualified institutional buyers’ has been subscribed 37 percent.
Bajaj Auto amends dividend distribution policy
Earlier, dividend distribution policy was around 50% of PAT on standalone financials. Here is the updated policy pic.twitter.com/uDQLK7WEm1
— CNBC-TV18 (@CNBCTV18Live) March 18, 2021
Kalyan Jewellers IPO subscribed 1.46 times so far on last day of bidding
The initial public offering (IPO) of Kalyan Jewellers has been subscribed 1.46 times so far on March 18 (Thursday), the last day of the bidding process. The issue has received bids for 13.94 crore equity shares against the offered size of 9.57 crore shares, as per data available on exchanges. The reserved portion for retail investors was subscribed 2.11 times and that of non-institutional investors was subscribed 93 percent. Qualified institutional buyers’ portion was subscribed by 66 percent. The employees’ portion has been booked 2 times, as of 11:40 am. The IPO comprises of issuance of fresh equity up to Rs 800 crore and an offer for sale (OFS) worth Rs 375 crore. The last day for subscribing to the issue is March 18 (Thursday). More here
Gold rate today: Yellow metal rises above Rs 45,200 per 10 grams on US Fed stance
Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Thursday tracking gains in the international spot prices as the dollar weakened after the US Federal Reserve kept the interest rates unchanged. At 11:05 am, gold futures for April delivery jumped 0.96 percent to Rs 45,272 per 10 grams as against the previous close of Rs 44,840 and opening price of Rs 44,892 on the MCX. Silver May futures traded 1.58 percent higher at Rs 68,291 per kg. The prices opened at Rs 67,260 as compared to the previous close of Rs 67,227 per kg. International gold prices rose to a more than two-week high on Thursday after the US Federal Reserve reaffirmed its stance to keep interest rate near zero until 2023, although the safe-haven metal’s gains were capped by its forecast of a strong economic rebound, a Reuters report said. More here