Share Market LIVE: Sensex resumes upward march, closes 222 pts higher, Nifty ends above 15,150; RIL gains 4%

Sensex and Nifty back in black. Benchmark indices resumed their upward trajectory as they closed with gains on Thursday. Sensex jumped 222 points while Nifty 50 closed above 15,150.

After being hit by the coronavirus aided pandemic and an economic slowdown, India’s chemical industry was hit severely in the previous year. However, now as the economy recovers and normalcy resumes, chemical space is among the first to recover. “We have assessed the current situation of the industry and our analysis compels us to uphold our positive stance on our specialty chemicals universe,” said domestic brokerage and research firm HDFC Securities. Now, post lockdown, capital expenditure seems to be on the cards for a number of chemical sector firms.

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Mukesh Ambani's Reliance Industries was the top Sensex gainer so far on Thursday. The stock price soared over 2.7% during the day.

Sensex was up 84 points at 1:15 PM while Nifty 50 was just below 15,150 mark. Reliance Industries, Sun Pharma, and Bharti Airtel were up more than 2% each.

Since the Union Budget, five of Rakesh Jhunjhunwala owned stocks have outperformed the benchmark indices by quite some margin. The seven-day rally in domestic equities, followed by two days of flat moves may have helped Rakesh Jhunjhunwala, who is often called the big bull of domestic stock markets, pocket a massive Rs 663 crore in just little over a week of trading. In the aftermath of the Union Budget, Sensex and Nifty have so far zoomed 11% each to scale fresh all-time highs, recouping all the losses they had suffered in the previous week.

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Nifty index opened flattish and took a pause in the positive momentum after a streak of making record highs from the last seven consecutive sessions. The index broke its previous day’s low and took a breather to close the day on a flat to negative note. It formed a Doji candle on daily scale with a long lower shadow indicating dips were being bought in the market. Now, Nifty has to hold above 15000 to continue its bullish momentum towards 15200 and 15250 zones while on the downside major support can be seen around 14850 and 14750 zones.

Expiry day point of view : Overall trend is bullish with buy on small declines strategy. Option traders are suggested to be with positive to range bound bias for an up move towards 15200 zones. Buy nearby 15050 and 15100 Call or Bull Call Ladder Spread.

Option Writing : Aggressive Option writers can sell 15300 Call and 14700 Put with strict double stop loss            

Sensex was again trading flat, trimming nearly 100 points from the highs. Nifty 50 was still above 15,100. Reliance Was the top gainer on Sensex.

The Rs 3,800-crore Brookfield India Real Estate Trust (REIT) initial public offer (IPO), which was subscribed nearly 8 times, will finalise the basis of share allotment on Thursday. It was the third REIT IPO after Embassy Office Parks REIT in 2019 and Mindspace Business Parks REIT in 2020. The issue was sold in the price band of Rs 274-275 per share. The shares of Brookfield India REIT will be listed on both BSE as well as the National Stock Exchange (NSE). 

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While the performance history is limited for this index, it seems to be a good alternative to buying the Nifty 50 index, given its lower risk and higher return profile historically. Given its value tilt, the index is trading at more favourable valuations (lower P/E, lower P/B) as compared to Nifty 50. The Nippon India Nifty 50 Value 20 Index Fund is also expected to have a lower drawdown as compared to Nifty 50.: INDmoney

Risk of a sharp deterioration in the asset quality of five of the largest PSU banks now seems to be abating with the economic recovery picking up pace, said Moody’s Investors Service in a recent note. However, despite this, the rating agency cautioned that such public sector lenders are likely to remain starved of sufficient capital to absorb unexpected shocks and support credit growth. Banks were expected to see a sharp rise in NPAs last year when the pandemic slowed the Indian economy down but despite the economic slump, the asset quality of banks has seen mild improvement.

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"The distinct trend in the market for the last several months - DII selling & FII buying - continues. The redemptions in mutual funds may be due to the mediocre performance of many funds relative to their benchmarks. Part of the money may be getting shifted to fixed income too. The texture of the market presently is Buy on Dips. Dips are immediately bought into. This is a reflection of the underlying strength of the market. The impressive Q3 corporate results indicate a robust recovery in the economy and corporate sector. High valuations, however, remain a concern," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

State-owned RailTel Corporation of India Ltd’s initial public offering (IPO) will open for subscription next week on February 16 and close on February 18, 2021. The price band of the public issue has been fixed at Rs 93-94 per share of the face value of Rs 10 each. RailTel Corporation of India Ltd public issue is entirely an offer for sale (OFS) of 8.71 crore equity shares by the government; the government could raise up to Rs 819 crore at the higher end of the price band. 

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Sensex opened flat with negative bias but soon slipped further into the red. Nifty 50 has given up 15,100 on the opening bell. 

Sensex moved 144 points lower as the Nifty 50 settled below 15,100 in the pre-open session. 

Nifty slipped below 15,100 and Sensex moved marginally lower as both the benchmark indices gave up their initial gains in the pre-open session.

Sensex was trading flat with a positive bias in the pre-open session on Thursday morning. Nifty was holding above 15,100. 

Domestic equity market benchmarks BSE Sensex and Nifty 50 were likely to see a gap-down start on Thursday as suggested by trends in SGX Nifty. Headline indices closed little unchanged in the previous session for the second day on the trot. While in the broader market, both midcap and smallcap indices ended with decent gains. Analysts seeing a healthy pause after the budget up move which is more of a time-wise consolidation so far.

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The Nifty has convincingly reversed the recent downtrend by moving up from a trend line support and convincingly closing above the 50 day SMA last Monday on the back of the Budget. With the uptrend intact, the Nifty now comfortably trades above the 20 day SMA. While there could be corrections in the very near term, we expect the index to make new life highs in the coming sessions.

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Banking and financial services stocks underperformed the benchmarks in calendar year 2020, with Bank Nifty delivering a negative return of 2.8%, against Nifty’s 14.9%. This could change this year as the banking sector is set to witness a re-rating on account of improving economic outlook and the focus on growth and profitability. Market experts believe that the Nifty Bank could outperform the markets in 2021.

"Going ahead, the overall long term structure of the market remains positive given confluence of economic recovery, containment of COVID-19, earnings beat, and an expansionary Budget. However, with markets hitting multiple new highs and valuations largely factoring in an earnings recovery, one should trade cautiously with stock specific actions and book profit intermittently. In the near term, market would actively track key macro data like IIP, CPI and WPI data along with global cues," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

State-run ports in the country, termed ‘major ports’, will get to determine the tariffs for various port-related services as well as the terms for private developers who team up with them, with Parliament on Wednesday passing the Major Ports Authority Bill, 2020.

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PM Modi cited the examples of telecom and pharma sectors to note as to how the robust presence of private firms in these fields has helped people, with even the poor using smart phones, and mobile calls costing virtually nothing due to competitiveness. If India is able to serve humanity during the COVID-19 pandemic, it is also due to the role of the private sector, he said.

Prime Minister Narendra Modi on Wednesday stressed on the private sector’s vital role in the economy and asserted that the culture of “abusing” it for votes is no longer acceptable. If the public sector is important, the role of the private sector is also vital, he said during his reply in Lok Sabha to the discussion on the motion of thanks to the President’s address.

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