Thank you readers! Here are the key highlights from today’s session
– Market Closes Higher In A Session Marred By Technical Glitch
– NSE Remained Shut From 11:40 am-3:30 pm Due To Technical Glitch
– Market Breadth Favours Advances; Advance-Decline Ratio At 2:1
– Nifty Ends 274 Points Higher At 14,982 After Briefly Hitting 15,000
– Sensex Ends 1,030 Pts Higher At 50,781; Midcap Index 237 Pts Higher At 23,300
– Financials Lead The Rally In Indices With Nifty Bank Surging Nearly 4%
– Pvt Banks Rise After Embargo On Grant Of Govt Biz To Private Sector Lenders Lifts
– Shares Of ICICI Bank, Axis Bank & HDFC Bank Jump 4-5%
– Coal India, HDFC Bank, Axis Bank & ICICI Bank Are Top Nifty Gainers
Closing Bell: Sensex ends over 1,000 points higher, Nifty above 14,950; Nifty Bank rallies 4%
The Indian indices ended 2 percent higher on Wednesday, in an extended trading session, led mainly by gains in banking and financials stocks with the Nifty Bank surging over 1,400 points. The Sensex ended 1,030 points higher at 50,781 while the Nifty50 rose 274 points to settle at 14,982. Earlier during the day, trading at the NSE index was suspended due to a technical issue. The benchmark Nifty50 was frozen at 14,820.45-level up 112.65 points or 0.77 percent since 10.08 am. However the index later reopened at 3:45 pm. On the Nifty50 index, four of the top five gainers were from the BFSI space. Coal India, HDFC Bank, Axis Bank, ICICI Bank and Bajaj Finance were the top gainers while UPL, Powergrid, Dr Reddy’s TCS, and JSW Steel led the losses.
India will surprise on the upside; Nifty could hit 100K by 2030, says Rakesh Jhunjhunwala
Billionaire investor Rakesh Jhunjhunwala has made a bold prediction about Nifty50, stating that it could touch 90,000-1,00,000 levels by the year 2030 — a 580 per cent rise from now. In an interview with CNBC on Tuesday, he said, “India is going to surprise on the upside. I can’t tell you the depth or direction as it depends on so many factors. India is on a roll and the stock market will be on a roll.” Back in 2014, Jhunjhunwala, who is referred to as ‘India’s Warren Buffet’, had shown a similar optimistic outlook, predicting Nifty would cross 1,25,000 points by 2030. To that, he said, “I won’t rule it out but I think I was too optimistic. People are underestimating the kind of change that is taking place in India.” More here
Nifty Bank jumps over 1,100 points post FM Sitharaman’s comment; all constituents in green
The Nifty Bank index jumped 3.5 percent or over 1,100 points on Wednesday with all its constituents in the green after Finance Minister Nirmala Sitharaman said that embargo has been lifted on the grant of govt businesses to private banks. Private banks can now be equal partners in the development of the Indian economy, furthering Govt’s social sector initiatives, and enhancing customer convenience, FM Nirmala Sitharaman tweeted on Wednesday. Other banking indices Nifty PSU Bank and Nifty Private Bank were also up over 3 percent post the comment.
Haven’t increased price; focussing on growth over pricing, says AkzoNobel India MD Rajiv Rajgopal
AkzoNobel India, the owner of the brand Dulux, delivered a good set of Q3 results in a weak environment. In an interview to CNBC-TV18, Rajiv Rajgopal, managing director of the company, spoke at length about how the demand is shaping up and what the company is expecting in the coming quarters. Speaking about growth, he said, “The raw material prices have been going up to an extent of about 8-10 percent. As of now we have not taken any price increases. In 2019 we had taken a price increase ahead of the industry.” He said at this point the company is focused on making sure that it deliver the growth agenda and that is the strategy for the next 3 years. More here
Expect to see strong pick-up in growth: Morgan Stanley’s Chetan Ahya
A big problem for global financial markets over the past week has been the rise in the US bond yields and there is an ongoing fear that this could perhaps put a stop to the ongoing equity rally. CNBC-TV18’s Latha Venkatesh spoke to Chetan Ahya, the Chief Economist and Global Head of Economics at Morgan Stanley, about his views on the same. “There is going to be a strong pick-up in growth. We have been calling for a demand surge from March-April and the market is more and more getting confident on that outlook,” he said. Stronger growth and inflation is getting priced in the bond market, he shared. He believed that in the US the markets were moving ahead of the Fed in terms of discounting the better growth and inflation environment. Watch the full interview here
Suzuki Motor chairman Osamu Suzuki to retire: Report
Suzuki Motor Corp’s 91-year old chairman, Osamu Suzuki, is retiring, the Nikkei newspaper reported on Wednesday. The chairman told some executives about his intention to retire, the Nikkei reported. A Suzuki Motor spokesman said the Nikkei report was not something that the automaker announced. Japan’s fourth-biggest automaker earlier said it was announcing a management plan later in the day.
Market timings to be as follows:
F&O Segment Normal Market will Re-open as follows:
Normal Market open time: 15:45 hrs
Normal Market close time: 17:00 hrs
Trade Mod cut off time: 17:30 hrs
CD Segment Normal Market will Re-open at 15:30 hrs
COM Segment Normal Market will Re-open at 15:30 hrs
SLB Market will Re-open at 15:30 hrs
CM Segment Market will Re-open as follows:
Pre-Open open time: 15:30 hrs
Pre-Open* close time: 15:38 hrs (random closure in last minute)
Normal Market open time: 15:45 hrs
Normal Market close time: 17:00 hrs
Call Auction Illiquid session open time (1 session of 1 hour): 16:00
Post close start time: 17:10 hrs
Post close end time: 17:30 hrs
Trade Mod cut off time: 17:45 hrs
IIFL Finance raises Rs 100 crore via NCDs
IIFL Finance on Wednesday said it has raised Rs 100 crore through issuance of non-convertible debentures (NCDs) on private placement basis. It said NCDs will be listed on the National Stock Exchange (NSE). Finance committee of the board of directors of the company… approved allotment of 1,000 NCDs…of face value of Rs 10 lakh each, for cash at par, aggregating to Rs 100 crore, on private placement basis,” IIFL Finance said in a regulatory filing. The NCDs will carry interest rate of 7.7 percent per annum.
Blackstone-owned Sona Comstar to launch IPO to raise Rs 6,000 crore
Auto component maker Sona Comstar is set to launch an initial public offering (IPO) to raise around Rs 6,000 crore. This is the largest IPO by an Indian auto components company locally. The company is owned by American private equity giant Blackstone, which owns a 66 percent stake in the firm while the remaining is held by Sunjay Kapur, chairman of the company. Quantum of the stake sale is not ascertained yet. This is the second proposed IPO by a Blackstone-owned company this year. In January, Blackstone-owned Aadhar Housing Finance filed the DRHP with SEBI for an initial public offering to raise up to Rs 7,300 crore. Blackstone owns a 98 percent stake in the NBFC. More here
Oil prices slip on surprise build in US crude stocks
Oil prices were lower on Wednesday after industry data showed a surprise build in US crude stocks last week as a deep freeze in the southern states curbed demand from refineries that were forced to shut. Crude stockpiles rose by 1 million barrels in the week to Feb. 19, the American Petroleum Institute (API) reported on Tuesday, against estimates for a draw of 5.2 million barrels in a Reuters poll. API data showed refinery crude runs fell by 2.2 million bpd. Brent crude futures slipped by 6 cents, or 0.1 percent, to USD 65.31 a barrel at 0748 GMT, but narrowed losses earlier in the session that sent it to as low as USD 64.80.
HDFC Securities continues to prefer IT, large banks post Q3 earnings
The December quarter was another strong quarter, beating expectations across most sectors, led by margin surprises. Sales also continued to rebound in Q3 at a faster pace than costs post the lockdown. In a results review note, HDFC Securities pointed out that the Q3 margins beat estimates across multiple sectors such as Cement, IT, Chemicals, Paints, Durables due to cost efficiencies and improved pricing power. It added that the festive season and unlocking of the economy led to a sharp demand rebound and larger companies gained market share. Collection trends also improved for lenders while the commodity costs rising sharply helped oil and metals sectors while gross margin pressures were visible in autos/durables etc, it stated. More here
JUST IN: Hang Seng posts biggest daily percentage fall since May 22, 2020
Fortis-IHH Deal Case | SC grills Fortis Healthcare on Rs 4000 cr IHH deal, questions it on the ‘influence’ of Singh brothers even after resignation.
SC directs Fortis Healthcare for details of the IHH deal & Singh brothers’ role by March 1 pic.twitter.com/XALvXxG1tV
— CNBC-TV18 (@CNBCTV18Live) February 24, 2021
Dilip Buildcon share price hits new 52-week high on new project
Dilip Buildcon share price gained over 2 percent to hit 52-week high after the company was declared the lowest bidder for 2 NHAI HAM projects. Dilip Buildcon Limited has been declared as L-l bidder for two new HAM proiects “Bangalore-Chennai Expressway under Bharatmala Pariyoina in the state of Karnataka, Phase -l worth Rs 2,439 crore, the company said in an exchange filing. The completion period is two years and operation period is 15 years. The cost of operation and maintenance in first year will be Rs 3 crore, the company added.
State government bonds rate soars to 11-month high of 7.19%
Despite near record low interest rates, the pricing of state government bonds skyrocketted to an 11-month high of 7.19 per cent, at the latest auction of Rs 23,806 crore market borrowings on Tuesday. It can be recalled that at the first auction of state bonds on April 7, 2020, Kerala was forced to offer 8.96 per cent on its Rs 6,000 crore market borrowing. This happened a fortnight after the RBI unveiled a slew of measures to ensure liquidity. This was the highest any state paid in interest cost for a market borrowing in recent years.
Nava Bharat Ventures surges 15% as board to consider buy back proposal
Shares of Nava Bharat Ventures surged 15 percent after the company announced that its board will consider share buyback proposal on Friday, February 26. The firm, on Tuesday after market hours, informed the stock exchanges that the meeting of the board of directors will be held on February 26, 2021, to consider the proposal for buyback of equity shares of the Company. A buyback, also known as a share repurchase, is when a company buys its own outstanding shares to reduce the number of shares available in the open market. A company buys back shares for a number of reasons, such as to increase the value of remaining shares available by reducing the supply, or to return surplus cash to shareholders.
NSE clarifies, no confirmation about pre-opening session resuming at 1 pm and normal trade at 1:15 pm
Clients with cover orders could get hit because of NSE trading disruption
Trading has been halted on the National Stock Exchange since 11:40 pm as prices for the cash as well as derivatives segments were not updating for more than an hour. NSE has said that trading will resume at 1 pm with a pre-open session and normal trading from 1:15 pm onwards. The exchange has communicated to brokers that all pending orders in the system when trading was halted, will be cancelled, and fresh orders will have to be put in during the pre-open session. Brokers told CNBC-TV18 that clients who have put in cover orders could be hit if the prices on resumption are below the stop loss (for traders with long trades) or above the stop loss (for traders with short trades). More here
BSE continues trading normally: Here are its top gainers and losers at this hour
NSE Spokesperson on the glitch
“NSE has multiple telecom links with two service providers to ensure redundancy and we have received communication from both the telecom service providers that there are issues with their links due to which there is an impact on NSE system. We are working on restoring the systems as soon as possible. In view of the above all the segments have been closed at 11.40 and will be restored as soon as issue is resolved.”