Ajit Mishra, VP - Research, Religare Broking
The bears took charge in today’s session as the Nifty index ended with a sharp cut of nearly 2 percent. Weak global cues combined with the news of a new mutant of the COVID-19 in India spooked participants. Though we have not seen any major correction in the benchmark yet, the uneasiness is certainly increasing with the rapid rise in the COVID cases. Besides, global cues are also mixed. We were hoping for some respite from the banking front but it failed to build on the previous session’s gain. Put together, indications are now pointing towards further slide in the index while volatility is likely to remain high due to the scheduled expiry of March month contracts. We reiterate our bearish yet cautious view and suggest maintaining positions on both sides.
Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services
The coronavirus fears are resurfacing as cases have started to tick up all over the world. This is dampening the reopening and recovery optimism and will keep the safe-haven dollar demand intact. However, there is IPO euphoria in the market which is keeping the spot below 73 levels. Until the spot is trading below 73 zone, the trend will be bearish, with crucial support being 72.25.
Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS
Tracking negative global cues, Indian markets came under renewed selling pressure today, with benchmark indices declining over 1.5 percent. Today's selloff suggests that the recovery in Nifty from Friday's low has possibly ended. The daily MACD indicator fell into negative territory today for the first time in 6-months. Furthermore, Nifty also closed below the daily upper Ichimoku cloud for the first time in 6-months. Both these factors indicate that the shorter-term momentum of Nifty has turned bearish.
Based on these, we expect short-term selling pressure to persist until the index is below yesterday's high of 14,878. On the downside, we could see the index testing 14,350 soon, break below which is likely to trigger further correction towards 14,000.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The support range of 14,750 was disrespected and we dropped over 200 points once that level broke. Keeping a stop loss at 14,900, traders can target 14,350-14,400 as a potential target for the index. Until we do not get past 14,900, the short to medium-term trend remains bearish.
Market At Close
- Sensex & Nifty End Near 1-month Low, Nifty Back Around 14,550
- Sensex Ends At 49,180, Down 871 Points & Nifty At 14,549, Down 265 Points
- Broader Market Ends With Cuts Of 2-2.5%; Nifty Bank At Over 7-week Low
- Almost All Nifty Stocks End In The Red Today; Tata Steel Top Loser
- Cipla, Asian Paints & Power Grid The Only Nifty Gainers Today
- HDFC Bk, ICICI Bk & Axis Bk Contribute More Than 60% To Nifty Bk’s Losses
- Hero Moto Ends 1% Lower Despite Announcing Price Hike Yesterday
- All Sectoral Indices End With Losses; Nifty Pharma Just Above Flatline
- Nifty Midcap Index Sheds 450 Points In Trade; Advance-Decline Ratio At 1:3
Closing Bell | Indian equity market ended sharply lower on Wednesday as worries over the economic impact of rising COVID-19 cases across the country spooked investors. The Sensex plunged 871.13 points, or 1.74 percent to 49,180.31, while the Nifty ended 265.35 points, or 1.79 percent lower at 14,549.40. Midcap and smallcap indices also ended 2 percent lower each.
Among sectors, barring pharma, ended the day in the red. The Nifty Metal index fell the most, down 3 percent while Nifty Bank lost 2.6 percent. Nifty Auto also shed 2.6 percent and Nifty Financials declined 2 percent for the day. Meanwhile, Nifty IT, Nifty FMCG and Nifty Energy were down 1-2 percent. On the Nifty50 index, Tata Steel, Tata Motors, Adani Ports & SEZ, Hindalco Industries, and M&M led the losses, while Cipla, Asian Paints, and PowerGrid Corporation were the only stocks in the green.
Market Watch: Sanjiv Bhasin Director, IIFL Securities
L&T, UltraTech Cement, ACC, Ambuja Cement are in our core portfolio and they will remain there, but the real money now is in the corporate facing banks. I think ICICI Bank is going to be leading from the front, so Rs 565-570 is a very good range.
I am not at all bullish on gold but I think that smart money from gold and equities will go into fixed assets. So real estate is here to stay for the next 3-4 years and there are just 2-3 big names now. I have bullish on Godrej Properties from Rs 350 levels. I think this stock is headed to Rs 2,500 in the next one year.
Escorts announces price hike of its tractors w.e.f April 1
Escorts Agri Machinery (EAM), a division of Escorts Ltd, shall be increasing the prices of its tractors effective 1st April 2021. There has been a steady rise in commodity prices necessitating a price hike to offset the impact of the inflation. The increase in prices would vary across models and variants, the company said.
Market Watch: Sanjiv Bhasin Director, IIFL Securities
L&T, UltraTech Cement, ACC, Ambuja Cement are in our core portfolio and they will remain there, but the real money now is in the corporate facing banks. I think ICICI Bank is going to be leading from the front, so Rs 565-570 is a very good range.
I am not at all bullish on gold but I think that smart money from gold and equities will go into fixed assets. So real estate is here to stay for the next 3-4 years and there are just 2-3 big names now. I have bullish on Godrej Properties from Rs 350 levels. I think this stock is headed to Rs 2,500 in the next one year.
Hemang Jani, Head Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services
Anupam Rasayan Ltd (ARL), engaged in the manufacturing of custom synthesis (CSM) and specialty chemicals in India, saw a lacklustre listing today on the exchanges – down 6% against its issue price of Rs555/share. The Rs 760 crore IPO of ARL was subscribed 44 times earlier this month but given market volatility, its grey market premium had fallen substantially to just Rs 100/share. Despite some GMP, the stock made a weak debut at Rs 520/share.
The valuations were a little on a higher side and given the current market sentiment, this led to a weak listing. Further, there are too many IPOs hitting the market at the same time which is resulting in quick rotation of money. Speciality chemical segment is also getting over-crowded; thus companies with over-valuation are not well supported at a time of weak market cues
Cash flow-based lending will become a reality in next few years: Credit Suisse’s Neelkanth Mishra
According to Credit Suisse report called ‘100 Unicorns’, India’s corporate landscape is undergoing a radical change due to a remarkable confluence of changes in the funding, regulatory, and business environment over the past two decades. Speaking to CNBC-TV18, Neelkanth Mishra, MD & India Equity Strategist at Credit Suisse said that cash flow based lending will become a reality in next few years.
“What used to be a concept – cash flow based lending versus asset based lending which India is used to doing, is now becoming a reality in the next 1-2 years. While this is great for a fintech company which is giving loans and their own business models are maturing, it is also great for the economy because a lot of people are going to get those loans. So, I think the virtuous cycle that this triggers and the pace at which the corporate landscape changes is something that I find quite fascinating,” he said. Continue reading.
Adani Enterprises | The company's subsidiary Adani Road Transport Ltd has announced the award of one more Hybrid Annuity Mode (HAM) Road Project from National Highways Authority of India (NHAI). The project includes four laning of NH-365A from Kodad to Khammam in the state of Telangana under Bharatmala Pariyojana on Hybrid Annuity Mode (HAM).
Indian fintechs are both challengers & collaborators to banks, NBFCs: Credit Suisse
Digital payments have played a huge part in the economy, said Ashish Gupta, head of equity research-India & Financials-Asia Pacific at Credit Suisse, on Wednesday. Digital payments and lending seem to be the future, and India is clearly in the game with several fintech unicorns. In an interview to CNBC-TV18, Ashish Gupta spoke at length about what this might spell for India’s financial landscape and its banking sector.
“The corporate landscape in India has been changing and all of us are focused on only one part of the landscape, which is the listed universe. We felt there was lot more activity, value creation, more growth emanating from this universe and much of it is in the private space and that’s what turned our attention to this space," he said. Read more.
Barbeque Nation IPO subscribed 75% so far on Day 1; retail portion booked 3.78 times
The initial public offering (IPO) of causal dining restaurants chain Barbeque Nation Hospitality has been subscribed 75 percent so far on March 24, the first day of bidding process. Investors have put in bids for 37.32 lakh equity shares against the offer size of 49.99 lakh shares, as per the subscription data available on the exchanges.
The reserved portion for retail investors has been subscribed 4.07 times, while that of non-institutional investors is subscribed 4 percent. Employees’ portion is subscribed 12 percent, while qualified institutional buyers have not put in their bids yet. The company has reserved shares worth Rs 2 crore for its employees.
Morgan Stanley maintains 'overweight' rating on Adani Ports; says Gangavaram Port deal a value accretive
Adani Ports & Special Economic Zone (APSEZ) has announced the acquisition of a majority stake in Gangavaram Port, an all-weather, deep water, multipurpose port, which analysts believe will be positive for the company. Brokerage firm Morgan Stanley said that the Gangavaram Port deal was value accretive and maintained an ‘overweight’ rating on Adani Ports with a target price of Rs 733 per share. The brokerage firm states that the Gangavaram Port has a strong balance sheet and generates steady cash flow. It has assigned 15 percent weight to its bull case, 75 percent to base case, and 10 percent to bear case.
Any correction from here good opportunity to accumulate: Kotak MF's Harsha Upadhyaya
Harsha Upadhyaya, CIO-Equity, Kotak Mutual Fund, believes that the market is in a correction mode now and any further correction would be a good opportunity to accumulate. “We seem to be in a correction mode now,” he said in an interview with CNBC-TV18. Upadhyaya believes overall there is going to be a significant earnings growth during the March quarter and that should continue into the June quarter as well.
"When you are staring at large amount of earnings growth over the next two quarters, it is difficult to believe that market will make a very large correction. So to that extent, we believe that correction would be shallow and also more time-wise and that should give us opportunities to fill up our portfolio in pockets where we believe there could be stronger recovery,” he said. Read more.
Global markets witness weakness due to COVID-19 jitters
The market is witnessing weakness because of COVID-19 jitters, not just in India and in the US but more so in Europe as well. It was September 16, 2020, when the COVID-19 cases peaked at 98,000 a day in India. The latest number stands at about 47,000. The worry is that the cases are rising in a pretty alarming fashion. The newsflow from Europe has also deteriorated in the past few days as many of the large cities in Europe still remain under lockdown.
To combat this, the countries are trying their best to accelerate these vaccination programmes quite rapidly. So the medium-term to slightly longer-term still remains upbeat despite what is being seen in the near-term in terms of these COVID jitters coming back. Watch here.
Jyoti Roy - DVP- Equity Strategist, Angel Broking
Barbeque Nation is India’s leading casual dining restaurant (CDR) chain, and International Barbeque Nation Restaurants. While the company has posted revenue growth of 20% CAGR between FY18-FY20 it has been continuously incurring losses at PAT level despite topline growth. The Covid-19 pandemic too has had an adverse impact on the operations of the company hence we expect profits will remain under pressure over the medium term. At the higher end of the price band the company is asking for a valuation of 2.4x FY20 EV/Sales which we believe is expensive given the current environment and hence we recommend a "Neutral" rating to the IPO.
Buzzing | Rail Vikas Nigam shares plunge 8% as government to sell 10% stake via OFS
The share price of Rail Vikas Nigam Ltd (RVNL) declined over 8 percent after the offer for sale (OFS) for the government’s 10 percent stake in the company opened today. The government said it will sell 20,85,02,010 equity shares or 10 percent of total paid-up equity of Rail Vikas Nigam via OFS route on March 24-25. The government will sell additional 10,42,51,005 equity shares or 5 percent shareholding) in the company in case of oversubscription. The floor price for the offer has been fixed at Rs 27.50 per share. Read more.
Continue to like Adani Ports; seeing price correction in pharma: Complete Circle Consultants
Gurmeet Chadha, Co-Founder & CEO of Complete Circle Consultants, on Wednesday said that he continues to be positive on Adani Port as the company is "transforming from a plain port services co to an integrated logistics player". "They have done acquisitions which have been value accretive and also we are seeing global trends of upsizing of containers and vessels and Adani is the only one which is capable of handling that,” he said in an interview to CNBC-TV18. Chadha also said that renewed fears of lockdown have led to rotation in the pharmaceutical sector.
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