MARKET WRAP: Sensex gains 196 pts, Nifty tops 10,850; PSBs jump up to 12%

Here's a look at all that happened in Friday's session.

10:04 AM

MSCI to quadruple weighting of China A-shares in its global benchmarks

Global index provider MSCI will quadruple the weighting of Chinese mainland shares in its global benchmarks later this year, it said on Thursday, potentially drawing more than $80 billion of fresh foreign inflows to the world's second-biggest economy. MSCI also announced that it will add Chinese mid-cap stocks to its emerging market benchmark in November, boosting the number of Chinese constituents. READ MORE

9:52 AM

Escorts gains over 2% post February sales nos

9:50 AM

Investment value of top FPIs in Indian shares more than double in 5 years

Despite sustained outflows seen last year, overseas investors continue to keep the faith in the country’s long-term growth potential. The investment value of 25 top foreign portfolio investors (FPIs) in Indian shares has more than doubled in the past five years between December 2013 and December 2018, the data collated from PRIME Database shows. READ MORE

9:48 AM

NEWS ALERT | Escorts Agri Machinery records 12% growth in February tractor sales at 7,240

9:43 AM

NEWS ALERT | Tata Sons bought additional 88.5 lakh shares in Tata Motors via open market on Feb 26

9:41 AM

NEWS ALERT | Bajaj Auto's February sales up 10% at 3.93 lakh units

9:32 AM

Nifty Metal index is trading 1.33% higher led by gains in SAIL

9:29 AM

SBI Life slips post block deal

9:28 AM

Sectoral trends on NSE

9:23 AM

Top gainers and losers on S&P BSE Sensex

9:22 AM

COMMENT :: Nomura on GDP data

We expect growth to slow further to 6.0-6.5% in H1 2019 (6.6% in 2019 vs 7.3% in 2018), owing to tight financial conditions (constraining consumption), the global growth slowdown and political uncertainty (constraining investment and exports). These factors are likely to more than offset the positives from easier macro policies and lower oil prices in the near term.

On monetary policy, with the RBI’s inflation projection below 4% for end-2019 and growth prospects dull, we believe the RBI will deliver another 25bp rate cut at its April policy meeting and we attach a 20% probability to another rate cut in Q3.

9:20 AM

Jet Airways up over 4% as Naresh Goyal agrees to step down as chairman

9:17 AM

Market at open

At 9:17 AM, the S&P BSE Sensex was trading at 36,068, up 219 points while the broader Nifty50 was ruling at 10,853, up 60 points.

9:14 AM

F&O WATCH

On the last day of February series, stock Futures rollovers stands at 87% with roll levels around ~46-48bps (cost to long rollers) indicating longs have rolled next series with positive bias. March series will start with market-wide future OI of INR 1.2tn as against INR 1.27tn seen at the start of the February expiry.

 

Nifty futures rollover stands at 60% vs. average rollovers of 69% (last three series). Nifty roll levels (cost to long) were ~40-42bps. Nifty futures will start the March series with an OI of INR 161bn (~14.93mn shares) compared to an OI of INR 203bn (~18.69mn shares) seen at the start of February series. Nifty futures OI (shares) is at the lowest level since Aug 2015 expiry.

 

The light nature of OI structure sets a strong base for move on either side. However we believe the case for a move upwards is pretty strong.  With expiry, MSCI re-bal and B22 ETF redemptions all coming together, it was a charged up day with respect to volumes. Weak cues kept a check on Nifty throughout the session. Selling action intensified in the VWAP. For the February expiry Nifty closed on a flat note (down by 36bps)

(Source: Edelweiss Research)

9:13 AM

Rollover stats

February was no different from the last 2 months as Nifty struggled to break out of the trading range of 10500 and 11000. Adding to the uncertainty creeping from the impending general elections, geo-political escalations are now keeping the equity market on tenterhook.

 

We believe Nifty is now undergoing a time correction which should conclude once the current state of regional instability recedes. On the upside, 11,000 has been a major hurdle and sustained closing above this should pave way for a strong pre-election rally. In the event of 11000 being taken out, index should race towards 11400 levels.

 

On the downside, 10600 will continue to act as a strong support. At the same time, we believe mid-caps now look ripe for a fresh round of outperformance vis-à-vis the large caps. Our conviction stems from the fact that even in the current round of weakness, mid-caps have stood apart. Few interesting picks here are LICHF, GRAN, SUNTV, BHFC, VOLT and APTY. Rollovers have ended on a very strong note.

(Source: Edelweiss Research)