The domestic equity benchmarks ended with decent gains on Wednesday amid positive global cues. The Nifty closed above the 15,150 mark. Trading was volatile due to expiry of weekly index options. Barring the Nifty PSU Bank index, all the sectoral indices on the NSE ended in the green. IT, metal and pharma shares rallied.
The barometer index, the S&P BSE Sensex, added 254.03 points or 0.50% to 51,279.51. The Nifty 50 index gained 76.40 points or 0.51% at 15,174.80.
Bajaj Finance (up 2.34%), Axis Bank (up 2.02%), Infosys (up 1.66%) and HDFC (up 0.79%) were major index movers.
The Sensex has risen 1.73% and the Nifty has climbed 1.58% in three consecutive sessions.
In the broader market, the BSE Mid-Cap index rose 0.77% and the BSE Small-Cap index gained 0.95% on Wednesday. Both these indices outperformed the benchmarks.
The market breadth was positive. On the BSE, 1629 shares rose and 1350 shares fell. A total of 178 shares were unchanged.
Global shares advanced as falling US bond yields eased concerns about surging inflation. The pullback for yields on Tuesday came as investors watched for the final passage of the Democrats' $1.9 trillion stimulus package in Congress.
On Tuesday, the US House of Representatives voted to advance President Joe Biden's $1.9 trillion COVID-19 relief bill, clearing the way for the measure to be considered on Wednesday, when it is expected to pass.
The Indian stock market will remain shut on Thursday (11 March 2021) on account of Mahashivratri.
Economy:
The Organisation for Economic Co-operation and Development (OECD) on Tuesday projected that the Indian economy will bounce back to grow at 12.6% in FY22, the highest among G20 countries. OECD increased India's growth estimate for FY22 by 4.7% from 7.9% projected in December. For FY21, it expected the economy to contract 7.4%.
OECD said the global economy is set to grow at a faster pace this year than projected earlier due to an accelerated roll-out of vaccinations against the coronavirus and a better outlook for the US on the back of a huge stimulus boost.
The Paris-based think tank raised the global GDP growth forecast for this year to 5.6% from 4.2% seen in December in its latest Interim Economic Outlook report. The global economy is projected to expand 4% in 2022, which is faster than the 3.7% forecast in December. World output is expected to reach pre-pandemic levels by mid-2021, but the pace and duration of the recovery will depend on the race between vaccines and emerging variants of the virus, the OECD said.
Separately, rating agency CRISIL projected the Indian economy to grow at 11% in FY22 driven by the flattening of the COVID-19 affliction curve, rollout of the vaccination programme, people learning to live with the new normal, and investment-focused government spending.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 6.247% as compared with 6.206% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 72.9150, compared with its close of 72.93 during the previous trading session.
MCX Gold futures for 5 April 2021 settlement fell 0.31% to Rs 44,720.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.10% to 92.05.
In the commodities market, Brent crude for May 2021 settlement rose 9 cents at $67.61 a barrel. The contract fell 72 cents, or 1.06% to settle at $67.52 a barrel in the previous trading session.
Foreign Markets:
Shares in Europe and Asia advanced on Wednesday as investors returned to risky assets, confident that a massive US stimulus package will soon be approved.
U.S. stocks rose on Tuesday after a decline in bond yields caused investors to rotate back into the beaten-up technology sector. The 10-year Treasury yield fell more than 5 basis points to 1.54%. The benchmark rate traded as high as 1.62% on Monday.
Democrats in the U.S. House of Representatives are aiming to pass the $1.9 trillion coronavirus relief bill on Wednesday so that Biden can sign it by the weekend. The legislation extends a $300 per week jobless benefit boost and programs expanding unemployment aid to millions more Americans through September 6.
Stocks in Spotlight:
Max Healthcare Institute rose 0.77%. The QIP issue committee of board of directors of the company approved allotment of 6.14 crore equity shares to eligible qualified institutional buyers at the issue price of Rs 195.40 per equity share, aggregating to Rs 1,200 crore. The QIP issue opened on 4 March 2021 and closed on 9 March 2021.
AU Small Finance Bank rose 1.94%. The capital raising committee of the board of directors of the bank, at its meeting held on 9 March 2021, authorised the opening of qualified institutional placement (QIP) issue and approved the floor price of Rs 1181.06 per equity share, the small finance bank said in a regulatory filing made after market hours yesterday.
Godrej Properties added 0.46% after the company launched a QIP of equity shares on Tuesday (9 March 2021). In a regulatory filing, the company said the QIP committee of the board of directors, in its meeting held on Tuesday, approved and adopted the preliminary placement document in connection with the issue. It also approved the opening of the issue from 9 March 2021. The panel approved the floor price for the issue at Rs 1,513.39.
Indian Bank shed 0.37%. The state-owned bank on Tuesday said its committee of directors has given approval for raising of equity capital of the bank aggregating up to Rs 4,000 crore through qualified institutions placement (QIP) in one or more tranches.
Cerebra Integrated Technologies jumped 5.15% after the company entered into an agreement with Iron Mountain to provide the IT Assets Disposition services to various organizations in India for recycling of IT e-waste. The company has received a purchase order against the agreement.
Indian Energy Exchange (IEX) gained 2.41% after the company announced a strategic divestment of 26% of its equity holding in Indian Gas Exchange (IGX) to National Stock Exchange of India and additional 5% equity holding to ONGC.
Under the agreement, NSE will purchase 1,92,07,500 equity shares having a face value of Rs 10 each representing 26% stake of IGX from IEX for Rs 19.20 crore. Meanwhile, ONGC will purchase 36,93,750 equity shares representing 5% stake in IGX from IEX for Rs 3.69 crore.
Lupin gained 2.31% after the drug major announced the launch of the authorized generic version of Alinia (nitazoxanide) tablets, 500 mg of Romark Laboratories. Nitazoxanide tablets are indicated in the treatment of diarrhoea caused by Giardia lamblia or Cryptosporidium parvum in patients 12 years of age and older. According to IQVIA MAT data, nitazoxanide tablets had estimated annual sales of $56 million.
Dr. Reddy's Laboratories advanced 1.15%. In a regulatory filing during market hours today, Dr. Reddy's said, "The audit of our API manufacturing plant at Middleburg, New York has been completed by the US FDA. We have been issued a Form 483 with 3 (three) observations." Currently, the company does not have any sales from this plant.
Primary Market:
The initial public offer (IPO) of Easy Trip Planners received bids for 240.27 crore shares as against 1.50 crore shares on offer, according to the stock exchange data at 17:00 IST on Wednesday (10 March 2021). The issue was subscribed 159.33 times.
The issue opened for bidding on Monday, 8 March 2021, and it will close today, 10 March 2021. The price band for the IPO is set at Rs 186-187 per share.
The IPO comprises an offer for sale (OFS) of equity shares aggregating up to Rs 510 crore (including anchor portion of 1,22,72,727 equity shares). The post issue promoters shareholding in the company would decline to 74.9% from 100%.
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