Domestic equity benchmarks ended with robust gains in the extended trading session on Wednesday. The Nifty ended near the 15,000 mark. Barring the Nifty IT index, all the sectoral indices on the NSE ended in the green. Banks shares rallied after the government lifted embargo on grant of government businesses to private banks.
The barometer index, the S&P BSE Sensex, jumped 1,030.28 points or 2.07% to 50,781.69. The Nifty 50 index added 274.20 points or 1.86% to 14,982.
In the broader market, the BSE Mid-Cap index rose 0.77% and the BSE Small-Cap index gained 1.08%. Both these indices underperformed the benchmark indices.
The market breadth was strong. On the BSE, 1863 shares rose and 1068 shares fell. A total of 168 shares were unchanged.
The National Stock Exchange (NSE) and BSE on Wednesday extended their trading hours till 5 PM after NSE halted trading in its cash and derivative segments, citing a technical glitch. NSE and BSE reopened for extended trading from 3:45 PM to 5 PM.
Meanwhile, all the segments on the BSE were operating as usual on Wednesday, 24 February 2021.
Economy:
The government lifted the embargo on private sector banks (only a few were permitted earlier) for the conduct of government-related banking transactions such as taxes and other revenue payment facilities, pension payments, small savings schemes, etc.
This step is expected to further enhance customer convenience, spur competition and higher efficiency in the standards of customer services. Private sector banks, which are at the forefront of imbibing and implementing latest technology and innovation in banking, will now be equal partners in development of the Indian economy and in furthering the social sector initiatives of the Government.
With the lifting of the embargo, there is now no bar on RBI for authorization of private sector banks (in addition to public sector banks) for Government business, including Government agency business. The Government has conveyed its decision to RBI.
Following the update, the Nifty Bank index surged 3.80% to 36,452.30. The index declined by 5.9% in the past six sessions.
HDFC Bank (up 5.36%), Axis Bank (up 5.19%), RBL Bank (up 4.64%), Federal Bank (up 4.62%), ICICI Bank (up 3.85%), IDFC First Bank (up 3.58%), Bandhan Bank (up 3.10%), SBI (up 3.08%), Kotak Mahindra Bank (up 2.41%), PNB (up 2.07%), Indusind Bank (up 1.71%) and Bank of Baroda (up 1.32%) surged.
Stocks in Spotlight:
Tata Consumer Products will replace GAIL (India) in the benchmark Nifty 50 index from 31 March 2021. Tata Consumer Products rose 0.10% to Rs 627.75 while GAIL (India) lost 0.58% to Rs 146.50.
NTPC fell 0.39% to Rs 103.15. The state-run enterprise executed a share purchase agreement with GAIL (India) to buy its 25.51% shareholding in Ratnagiri Gas & Power and exit from Konkan LNG subsequently.
Nava Bharat Ventures soared 12.01% to Rs 65.75 after the company said its board will consider a share buyback on 26 February 2021.
Aditya Birla Fashion and Retail (ABFRL) jumped 6.54% to Rs 179.25 after the company announced a strategic partnership with Indian designer Tarun Tahiliani to form a new entity that will soon launch a contemporary men's ethnic wear brand. ABFRL will hold 80% stake in the new entity while Tarun Tahiliani will hold the remaining 20%. The new brand aims to build a Rs 500 crore business in the next 5 years with more than 250 stores across the country. The brand will launch the first set of retail stores by September 2021.
Tata Power rose 2.07% to Rs 93.90. The power producer said that it had raised Rs 900 crore by allotting 9,000 unsecured, redeemable, taxable, listed, rated NCDs on private placement basis.
SBI Cards and Payment Services gained 1.16% to Rs 1040.90. The stakeholder relationship committee of the company has approved the allotment of 5,500 fixed rate, unsecured, rated, taxable, redeemable, senior NCDs of the face value of Rs 10,00,000 each, at par, under Series 23 aggregating to Rs 550 crore on private placement basis. The tenure of investment is three years with a coupon rate of 5.9% per annum.
Aurobindo Pharma rose 0.72% to Rs 862.15. The company has signed the binding agreements to invest Rs 5.382 crore each in Hyderabad-based NVNR (Ramannapet I) power plant and NVNR (Ramannapet/I) power plant, aggregating to a total of Rs 10.764 crore. The company has invested in the two firms to avail the benefit of captive consumption of solar power, it added.
Mazagon Dock Shipbuilders added 0.74% to Rs 217 after the company executed a Memorandum of Understanding with Mumbai Port Trust to further the economic growth of the region and the country under the Maritime India Summit 2021.
Sanofi India rose 2.23% to Rs 8150 after the company reported a 26.4% jump in net profit to Rs 123 crore on a 12.8% decline in net sales to Rs 720.3 crore in Q4 December 2020 over Q4 December 2019. Profit before tax grew by 5.5% to Rs 170.2 crore in Q4 December 2020 from Rs 161.3 crore in Q4 December 2019. Current tax expense tumbled 35.5% year on year to Rs 46.7 crore in Q4 December 2020.
Meanwhile, the company announced a final dividend of Rs 125 per equity share for the year ended 31 December 2020. It also recommended a special dividend of Rs 240 per equity share for the year ended 31 December 2020, after considering the closure of the slump sale transaction relating to Ankleshwar manufacturing facility. The final dividend and the special dividend, if approved by the shareholders, will be paid on or after 4 May 2021.
Granules India gained 0.96% to Rs 324.95 after the company said that US drug regulator has approved its Abbreviated New Drug Application (ANDA) for acetaminophen, aspirin and caffeine tablets USP, 250 mg/250 mg/65 mg (OTC). The drug is indicated for treating migraine.
Dilip Buildcon added 2.36% to Rs 645 after the company said it was declared as the lowest (L1) bidder for two tenders floated by the National Highways Authority of India on hybrid annuity basis (HAM) in Karnataka.
Spandana Sphoorty Financial rose 1.31% to Rs 645.75. the company's board has approved the issuance of up to 12,000 secured, rated, listed, redeemable, transferable, non-convertible debentures having face value of Rs 1 lakh each, aggregating up to Rs 120 crore on a private placement basis.
Numbers to Watch:
The yield on 10-year benchmark federal paper fell to 6.147% as compared with 6.172% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 72.3550, compared with its close of 72.46 during the previous trading session.
In the commodities market, Brent crude for April 2021 settlement rose 51 cents at $65.88 a barrel. The contract rose 13 cents, or 0.20% to settle at $65.37 a barrel in the previous trading session.
Foreign Markets:
Asian stocks declined across the board while European stocks were trading higher on Wednesday as investors digest remarks from U.S. Federal Reserve Chair Jerome Powell on Tuesday, as he attempted to ease some worries around higher interest rates and inflation.
Wall Street reversed course late Tuesday, with the S&P 500 and the Dow whipsawing to positive territory by the closing bell in a tug-of-war between stocks that thrived amid lockdowns and those that stand to benefit most from a reopening economy.
Powell indicated that the Federal Open Market Committee (FOMC) was nowhere close to pulling back on its support from the economy as it will still take sometime for it to achieve the employment and inflation goals. He added that inflation is still 'soft' and that the Fed is committed to current policy.
The Conference Board released a report showing consumer confidence has improved more than expected in the month of February. The Conference Board said its consumer confidence index rose to 91.3 in February from a downwardly revised 88.9 in January.
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