Key benchmark indices ended with strong gains on Thursday, rising for the third consecutive session. The Nifty closed near 15,100 mark. Positive global cues boosted investors' sentiment. Trading was volatile as the February 2021 F&O contracts expired today. Metal stocks surged while FMCG stocks lagged the broader rally.
The barometer index, the S&P BSE Sensex, rallied 257.62 points or 0.51% at 51,039.31. The Nifty 50 index added 115.35 points or 0.77% at 15,097.35. Both these indices have risen over 2.5% each in three consecutive sessions.
Strength in ONGC (up 4.66%), Reliance Industries (up 3.84%), Axis Bank (up 2.94%) and TCS (up 1.41%) supported the uptrend on Thursday.
The rally was broad based. The BSE Mid-Cap index rose 1.09% and the BSE Small-Cap index gained 1.42%.
Buyers outpaced sellers. On the BSE, 1,782 shares rose and 1,171 shares fell. A total of 175 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 11,25,53,318 with 24,97,419 deaths. India reported 1,51,708 active cases of COVID-19 infection and 1,56,705 deaths while 1,07,38,501 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 6.184% as compared with 6.147% at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 72.43, compared with its close of 72.3550 during the previous trading session.
In the commodities market, Brent crude for April 2021 settlement rose 15 cents at $67.19 a barrel. The contract rose $1.67, or 2.55% to settle at $67.04 a barrel in the previous trading session.
Foreign Markets:
Shares in Europe and Asia advanced on Thursday, following reassuring comments from Federal Reserve Chairman Jerome Powell on the inflation outlook.
US stocks edged higher on Wednesday, as a selloff in technology-related stocks eased and a rotation into cyclical shares continued.
The moves on Wall Street came as U.S. Federal Reserve Chair Jerome Powell continued to downplay the threat of inflation, saying it could take three years to reach the central bank's target consistently.
In Wednesday's testimony in front of the House Financial Services Committee, Powell said inflation could be volatile as the economy reopens and there's increased demand. Still, the Fed chair does not expect inflation to run hot and said the central bank has tools to combat it if it should.
Meanwhile, on Wednesday, the Food and Drug Administration's staff endorsed Johnson & Johnson's single-shot COVID-19 vaccine for emergency use, bringing in a third vaccine to the U.S.
New Listing:
Shares of Nureca hit an upper circuit of 5% at Rs 666.65 on the BSE, and trading a premium of 66.66% over the initial public offer (IPO) price of Rs 400. The stock was listed at Rs 634.95, a premium of 58.7% to IPO price. So far the stock hit a high of Rs 666.65 and low of Rs 603.25. On the BSE, 78 lakh shares were traded on the counter so far. The IPO of Nureca received bids for 5.59 crore shares as against 14.01 lakh shares on offer, according to the stock exchange data. The issue was subscribed 39.93 times.
Buzzing Segment:
Shares of Rane Group companies saw strong demand. Rane (Madras) (up 20%), Rane Brake Lining (up 14.49%), Rane Engine Valve (up 10%) and Rane Holdings (up 6.70%) advanced.
Stocks in Spotlight:
HDFC fell 0.74%. HDFC Property Ventures (HPVL), a wholly-owned subsidiary of HDFC, has sold 50,000 equity shares of Rs 10 each, representing 50% of the issued and paid-up share capital of Magnum Foundations. The aggregate sale consideration is Rs 13,11,54,505. Subsequent to the sale of entire stake in Magnum by HPVL, Magnum has ceased to be an associate of HDFC.
Max Financial Service (MFSL) surged 4.20% after the company said it has received a formal approval from the insurance regulator for the acquisition of upto 12% stake in Max Life Insurance by Axis Bank and its subsidiaries. As per the proposed transaction, Axis Entities have the right to acquire up to 19% stake in Max Life, of which, Axis Bank proposes to acquire up to 9%, and Axis Capital and Axis Securities together propose to acquire up to 3% of the share capital of Max Life in the first leg of the transaction. In addition, Axis Entities have the right to acquire an additional stake of up to 7% in Max Life, in one or more tranches, which they intend to acquire over the course of the next few years
Piramal Enterprises gained 5.34% after the company said its subsidiary, Piramal Pharma, has completed the acquisition of Convergence Chemicals on 24 February 2021. On 28 October 2020, Piramal Enterprises announced that its subsidiary, Piramal Pharma (PPL), will acquire additional stake in Convergence Chemicals (CCPL) for an aggregate cash consideration of Rs 65.10 crore. The transaction is now closed.
Just Dial hit an upper circuit of 20% at Rs 767.50 after the company launched its B2B portal, Jd Mart, across various platforms for users. Jd Mart is an exclusive B2B portal for a new wholesale experience. B2B buyers can discover quality vendors offering a wide selection of products to choose from, spread across various categories to suit all their B2B needs.
Ashok Leyland rose 3.23%. The commercial vehicles maker on Thursday announced that it will acquire 38% stake in Hinduja Tech (HTL) from Nissan International Holding BV. Consequently, HTL will become a wholly-owned subsidiary of Ashok Leyland. HTL is engaged in the business of IT & ITeS. HTL had a consolidated revenue of Rs 226 crore and profit after tax of Rs 15.95 crore as on 31 March 2020.
Angel Broking added 3.50% after the stock broker said it has partnered with Vested Finance to allow domestic investors to invest in US‐based stocks. The tie up will make investments in US-stocks and ETFs easy at the touch of a button.
IIFL Securities fell 1.16% to 55.50, reversing from the day's high of Rs 65.60 in early trade. The company emerged as the successful bidder for demat accounts held by Karvy Stock Broking with NSDL and CDSL. IIFL Securities will get access to 11,06,108 accounts from Karvy Stock Broking. The custody value of these accounts as of 31 January 2021 is Rs 3,01,407 crore.
Cadila Healthcare gained 0.83% after the drug maker said it received a final approval from the US drug regulator to market nortriptyline hydrochloride capsules 10 mg, 25 mg, 50 mg and 75 mg. The medication is used to treat mental/mood problems such as depression. The drug will be manufactured at the group's formulation manufacturing facility at the SEZ, Ahmedabad.
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