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NSE Intra-day chart (05 March 2021)
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Market Commentary 08 March 2021
Markets to make optimistic start amid positive global cues


Indian equity benchmarks fell for second straight session on Friday on the back of losses in metal, power and telecom stocks amid weak global cues as rising bond yields spooked investors. Markets made negative start and stayed in red for whole day, as India's tally of coronavirus cases has risen to 11,173,572, with a daily increase of 16,824 in total cases. Death toll has reached 157,584, with 113 fatalities in a day. India's count of active cases has jumped to 177,967. The country continues to be second-most-affected globally, and ranks 13th among worst-hit nations by active cases. Maharashtra, the most affected state overall, has reported 9,000 new cases. The state has added nearly 80,000 cases in the past 10 days. Traders also remain worried as the Economic Survey 2021 tabled in the state Legislature said Maharashtra's economy is expected to see an eight per cent negative growth during 2020-21 with industry and services sectors bearing the maximum brunt of the COVID-19 pandemic and the subsequent lockdown. Traders took note of private report stating that the Centre is likely to first privatise profit-making state-run companies, a shift from the previously announced strategy of focusing on loss-making units. The NITI Aayog, which is identifying public sector units (PSUs) for privatisation, could put out the first list of companies in April. However, markets managed to trim some losses in late afternoon deals, taking support from the government data showing that foreign direct investment (FDI) in India grew 40 percent to $51.47 billion during April-December 2020-21. India has attracted 22 percent higher FDI inflow (including re-invested earnings) of $67.54 billion during the first nine months of the current fiscal as against $55.14 billion in the same period of 2019-20. However, the markets failed to hold recovery and ended around a percent lower even after Prime Minister Narendra Modi said production linked incentive (PLI) scheme, which is aimed at boosting domestic manufacturing and exports, is expected to increase the country's production by $520 billion in the next five years. Modi said the government is continuously carrying out reforms to boost domestic manufacturing. Meanwhile, RBI will conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) on March 10. RBI will purchase four government securities of different maturity dates aggregating to Rs 20,000 crore and sell three securities aggregating to Rs 15,000 using the multiple price auction method. Finally, the BSE Sensex fell 440.76 points or 0.87% to 50,405.32, while the CNX Nifty was down by 142.65 points or 0.95% to 14,938.10.


The US markets ended volatile session significantly higher on Friday as traders continued to keep a close eye on activity in the bond markets following the recent increase in yields. Yields spiked early in the session following the release of upbeat jobs data, contributing to a continued sell-off by stocks in early trading. However, bond yields gave back ground over the course of the session, with the yield on the benchmark ten-year note ending the day nearly flat after reaching a more than one-year high above 1.6 percent. The pullback by yields inspired traders to pick up stocks at relatively reduced levels following the weakness seen in recent sessions. The volatility in the markets followed the release of the Labor Department's closely watched monthly jobs report, which showed much stronger than expected job growth in the month of February. The Labor Department said non-farm payroll employment jumped by 379,000 jobs in February after climbing by an upwardly revised 166,000 jobs in January. Street had expected employment to increase by 182,000 jobs compared to the uptick of 49,000 jobs originally reported for the previous month. The stronger than expected job growth was primarily due to a rebound in employment in the leisure and hospitality industry, which added 355,000 jobs. The report also said the unemployment rate unexpectedly edged down to 6.2 percent in February from 6.3 percent in January. Street had expected the unemployment rate to remain unchanged. The modest decrease pulled the unemployment rate down to its lowest level since hitting 4.4 percent last March, when coronavirus-related lockdowns began to take effect.


Crude oil futures ended higher for third straight session on Friday reacting to the decision of the Organization of the Petroleum Exporting Countries (OPEC) and its allies to maintain their output reduction agreement through end of April. Saudi Arabia said it will retain its 1 million barrel-a-day voluntary production cut in order to support crude prices. Also, with the economy showing signs of a quick recovery, it is widely expected that energy demand will see a significant jump across the world. According to the report released by Baker Hughes, US energy firms added oil and natural gas rigs for a second week in a row amid rising crude prices. The oil and gas rig count in the US rose to 403 this week, an addition of one rig from a week earlier. Crude oil futures for April rose $2.26 or about 3.5 percent to settle at $66.09 barrel on the New York Mercantile Exchange. May Brent crude surged $2.63 or 3.91 percent to settle at $69.37 a barrel on London's Intercontinental Exchange.


Continuing previous session losses, Indian rupee depreciated against dollar on Friday as rebound in the US dollar and downfall in domestic equities weighed on investor sentiment. Traders shrugged off report of the commerce and industry ministry's latest data stating that that Foreign direct investment (FDI) in India grew 40 percent to $51.47 billion during April-December 2020-21 as against $36.77 billion in the same period of 2019-20. Adding pessimism, treasury yields spiked in reaction to the latest comments from Federal Reserve Chair Jerome Powell that he expects some inflationary pressures in the time ahead. On the global front, pound lost ground against a resurgent dollar on Friday, as currency traders took some risk off the table amid rising U.S. bond yields. Finally, the rupee ended at 73.02, 19 paise weaker from its previous close of 72.83 on Thursday.


The FIIs as per Friday's data were net buyer in equity segment, while net seller in debt segment. In equity segment, the gross buying was of Rs 13265.69 crore against gross selling of Rs 11907.29 crore, while in the debt segment, the gross purchase was of Rs 268.67 crore with gross sales of Rs 428.06 crore. Besides, in the hybrid segment, the gross buying was of Rs 4.81 crore against gross selling of Rs 14.13 crore.


The US markets ended higher on Friday after a rollercoaster session, as healthy February employment data overcame worries of impending inflation, which hit equities earlier in the week. Asian markets are trading mostly in green on Monday after the US Senate passage of a $1.9 trillion stimulus bill and a surprisingly strong payrolls report augured well for a global economic rebound. Indian markets ended lower on Friday amid weak global cues as rising bond yields spooked investors. Today, the start of new week is likely to be optimistic tracking positive global cues. Traders will be taking encouragement as FICCI's Overall Business Confidence Index has witnessed a decadal high of 74.2 in the current round on account of improvement in present conditions as well as expectations. Some support will come with the finance ministry's statement that the Indian economy is likely to do better than the projection of an 8 per cent shrinkage in the current fiscal as economic activity gathers pace with mild stiffening of pandemic curve and the rollout of vaccines. Moreover, Prime Minister Narendra Modi said the production-linked incentive (PLI) scheme would lead to output worth $520 billion in India in the next five years, while industry asked for clarity on implementation across sectors. However, a spike in crude oil prices may play spoilsport. Traders may be concerned as the coronavirus cases in India jumped to 11,229,271 with 18,691 new infections reported across the country, according to Worldometer. The death toll meanwhile reached 157,890 with 99 fatalities in the last 24 hours. There may be some cautiousness as the finance ministry flagged global and domestic inflation as a downside risk to India's growth momentum. Also, the RBI data showed that India Inc's overseas direct investment fell by 31 percent to USD 1.85 billion in February this year. There will be some buzz in IT stocks with the RBI data on performance of private sector corporate showing that Information technology (IT) sector remained in the positive terrain throughout the COVID-19 pandemic period and its sales increased by 5.2 per cent year-on-year in the third quarter of 2020-21. Financial sector stocks will be in focus as Chief Economic Advisor (CEA) Krishnamurthy Subramanian said the country's financial sector has not really grown as fast as it should have and is still very, very small. There will be some reaction in chemical sector stocks as the government is considering launching a production linked incentive (PLI) scheme in the chemical sector to boost domestic manufacturing and exports. Meanwhile, the Rs 510 crore initial public offer (IPO) of Easy Trip Planners will kick off on Monday. The issue is entirely an offer for sale (OFS) by two promoters, who are offering Rs 255 crore worth of shares each, in the Rs 186-187 price band.


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



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Indian Oil Corporation






  • Wipro has signed an agreement to acquire Capco, a global management and technology consultancy providing digital, consulting and technology services to financial institutions in the Americas, Europe and the Asia Pacific. 
  • ICICI Bank has reduced home loan interest rate to 6.70%. 
  • Kotak Mahindra Bank has divested 10 per cent stake in ECA Trading Services to one of its subsidiaries for nearly Rs 2 crore. 
  • Bajaj Auto has launched 115 cc bike Platina 110 in the country priced at Rs 65,920 (ex-showroom).
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