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NSE Intra-day chart (01 March 2021)
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Market Commentary 02 March 2021
Markets likely to open higher following Asian peers


Indian equity benchmarks rebounded on Monday amid a broad-based buying after the benchmark indices suffered their biggest one-day drop on Friday. Markets, after a gap-up start, traded with optimism throughout the session, as India's Gross Domestic Product (GDP) grew by 0.4 per cent for the October-December quarter (Q3) of current fiscal (FY21). The GDP growth has returned the economy to the pre-pandemic times of positive growth rates. It is also a reflection of a further strengthening of V-shaped recovery that began in Q2 of 2020-21, after a large GDP contraction in Q1 followed one of the most stringent lockdown imposed by Government relative to other countries. Sentiments remained up-beat as data released by the Ministry for Commerce and Industry showed that the core sector index, which measures output of eight infrastructure industries, rose marginally by 0.1 per cent in January, indicating a wobbly recovery from the pandemic shock. Output in five of the eight crucial sectors fell on a year-on-year (YoY) basis. However, the strong trade turned mildly volatile in the noon deals as they trimmed most of gains, after Indian manufacturing activity eased marginally in the month of February but it remains above the boom-or-bust line of 50 that separates expansion from contraction, as firms responded to strong increases in new work intakes by lifting production, input buying and stocks of purchases. As per the survey report, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) - a composite single-figure indicator of manufacturing performance - stood at 57.5 in February as against 57.7 in January.  But, markets regained traction to end higher, taking support from the labour ministry stating that retail inflation for industrial workers eased to 3.15 per cent in January against 7.49 per cent in the same month last year, mainly due to lower prices of certain food items. Adding more optimism on the street, India Ratings and Research (Ind-Ra) upgraded its FY21 credit growth estimates to 6.9 per cent from 1.8 per cent, given the improved economic environment in 2H FY21 and the government's focus on higher -- spending especially on infrastructure. Finally, the BSE Sensex rose 749.85 points or 1.53% to 49,849.84, while the CNX Nifty was up by 232.40 points or 1.60% to 14,761.55.


The US markets ended higher on Monday on rising hopes about additional stimulus after the House passed a $1.9 trillion coronavirus relief bill. The market also reacted positively to report that Johnson & Johnson's (JNJ) single-shot Covid-19 vaccine received emergency use authorization from the FDA on Saturday, paving the way for its distribution. A drop in Treasury yields contributed as well to the bullish sentiment in the stock market. The yield on the benchmark ten-year note is moving lower for the second straight session after ending last Thursday's trading at its highest closing level in a year. Yield on 10-year US Treasury Note eased to almost 1.4 percent on Monday, after having surged to 1.6 percent last week. On the economic data front, the Institute for Supply Management (ISM) released a report showing US manufacturing activity grew at an accelerated rate in the month of February. The ISM said its manufacturing PMI rose to 60.8 in February from 58.7 in January, with a reading above 50 indicating growth in the manufacturing sector. Street had expected the index to inch up to 58.8. A separate report released by the Commerce Department showed US construction spending increased by much more than anticipated in the month of January, rising by 1.7 percent to an annual rate of $1.522 trillion, after jumping by 1.1 percent to a revised rate of $1.497 trillion in December. Street had expected construction spending to climb by 0.8 percent.


Crude oil futures ended lower on Monday as traders eyed tensions between the US and Saudi Arabia. An intelligence report released by the Biden administration said Saudi Arabia's crown prince likely approved an operation to kill or capture US-based journalist Jamal Khashoggi in the Saudi consulate in Istanbul. The US has sanctioned Saudi Arabia's Intervention Force, called the Tiger Squad. as well as a former Saudi intelligence officer for the involvement in Khashoggi's murder, but has not sanctioned the prince. Meanwhile, the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, scheduled to meet on Thursday, may consider increasing output levels. Crude oil futures for April declined 86 cents or 1.4 percent to settle at $60.64 barrel on the New York Mercantile Exchange. May Brent crude fell 73 cents or 1.1 percent to settle at $$63.69 a barrel on London's Intercontinental Exchange.


Continuing previous session losses, Indian rupee ended lower against dollar on Monday weighed down by significant foreign fund outflows and rising crude oil prices. Traders were worried despite report that as India is now out of a technical recession after witnessing two successive quarters of revised negative growth at 7.3% in the July-September period and a 24.4% decline in the first quarter of the financial year 2020-21 (FY21). India's Q3 GDP grew by 0.4% after witnessing a negative growth of 7.5% and 23.9% in Q2 and Q1 respectively of FY21 as economic activity limps back to normality after Covid-19 pandemic shock. Meanwhile, Indian equities continued to scale new highs post the Union Budget for FY22, the net foreign portfolio investments (FPI) into the Indian equities in February was Rs 25,787 crore. On the global front; sterling edged higher against both the euro and the dollar on Monday as a swift coronavirus vaccine roll out supported the pound and fuelled hopes of economic recovery. Finally, the rupee ended at 73.55, 8 paise weaker from its previous close of 73.47 on Friday.


The FIIs as per Monday's data were net seller in both equity and debt segment. In equity segment, the gross buying was of Rs 22786.29 crore against gross selling of Rs 30957.77 crore, while in the debt segment, the gross purchase was of Rs 935.20 crore with gross sales of Rs 1792.96 crore. Besides, in the hybrid segment, the gross buying was of Rs 22.41 crore against gross selling of Rs 76.49 crore.


The US markets ended higher on Monday as bond markets calmed after a month-long selloff, while another COVID-19 vaccine getting US approval and fiscal stimulus bolstered expectations of a swift economic recovery. Asian markets are trading mostly in green on Tuesday as a halt in a recent bond markets sell-off calmed investor nerves and lifted riskier assets, although oil prices were on the defensive on fears of slowing Chinese energy consumption. Indian markets ended over 1.5 percent higher on Monday, recovering from a 3 percent decline in the previous session, as bond markets calm triggering a rally in the global peers. Today, the markets are likely to open higher, extending gains for another session, following a rally in global peers. Some support will come with the finance ministry stating GST collections crossed the Rs 1 lakh crore-mark for the fifth month in a row in February, rising 7 per cent annually to over Rs 1.13 lakh crore, indicating economic recovery. Goods and Services Tax (GST) collections had risen for two straight months to touch record Rs 1,19,875 crore in January and Rs 1.15 lakh crore in December. Besides, the Reserve Bank of India (RBI) remained net buyer of the US dollar in December after it purchased $3.991 billion from the spot market. Also, the government is aiming to attract investment worth Rs 3.39 lakh crore during Maritime India Summit 2021 in various projects. However, traders may be concerned as India's count of active cases has risen to 169,786. On Monday, the country registered 11,563 fresh Covid-19 cases, taking its the caseload tally to 11,123,619. India continues to be second-most-affected globally, and ranks 13th among worst-hit nations by active cases. There may be some cautiousness with a private report that food inflation in India will probably accelerate in the coming months on stronger prices of fruits, vegetables and chicken following poor supplies. Meanwhile, India's market regulator SEBI proposed tighter eligibility and appointment rules for independent directors of listed companies, a move seen aimed at protecting minority investors. The Securities and Exchange Board of India (SEBI) proposed that if listed companies in India wish to appoint or remove independent directors they should require the dual approval of shareholders and a majority of the company's minority investors. There will be some buzz in banking sector stocks as RBI data showed bank credit grew by 6.58 per cent to Rs 107.04 lakh crore, while deposits rose by 11.75 per cent to Rs 147.81 lakh crore in the fortnight ended February 12. Aviation stocks will be in focus as rating agency ICRA said there could be a delay in the commercialisation of expanded capacity by 9-12 months, and expecting domestic air passenger traffic to return to the pre-COVID-19 level by the financial year 2022-23 and international by 2023-24.


Support and Resistance: NSE (Nifty) and BSE (Sensex)



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NSE Nifty




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Nifty Top volumes





Previous close (Rs)

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Bharti Airtel





Oil & Natural Gas Corporation





Indian Oil Corporation





State Bank of India






  • Reliance Industries' subsidiary -- Reliance Strategic Business Ventures has raised its shareholding in investee company skyTran Inc to 54.46 percent. 
  • M&M has reported that its overall auto sales for the month of February 2021 stood at 28,777 vehicles, compared to 32,476 in February 2020. 
  • SBI's subsidiary company -- SBI General Insurance has tied-up with IOB for a bancassurance partnership for selling its non-life products. 
  • Axis Bank's board has approved a proposal to reclassify UIICL as a public shareholder category investor in the bank from promoter category.
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