Market recap for 26 February 2021

Nifty50: 14,529 ▼ 568 (-3.7%)

Sensex: 49,099 ▼ 1,939 (-3.8%)

Indian markets opened with a significant gap-down and it was a downward slide thereon. Every single Nifty50 stock closed in the red.

The story was no different among the sectoral indices. There wasn’t a single sector that posted gains, while the Nifty Financial Services (-4.9%) and Nifty Bank (-4.7%) were the top losers.

Here are the top stories of the day. 

Banking stocks witness a rout 

• Shares of banks and NBFCs witnessed a sharp fall today as rising bond yields in both Indian and global markets hinted at a possible increase in interest rates in the near future.
• In the short term, banks see a loss in the treasury on their bond holdings (as bond prices fall). In the medium-to-long term, high-interest rates impact the growth of the lending business. The Nifty Bank index was down 4.7% due to a fall in heavyweights such as HDFC Bank (-4.2%), HDFC (-5.3%), Kotak Bank (-5.4%), Axis Bank (-5.8%).

Dilip Buildcon soars on highway deals

• The building and construction company emerged as the lowest bidder for two contracts. One is a ₹2,241 crore contract for four-laning sections of national highways in Tamil Nadu and Puducherry. The second is a ₹1,060 crore deal to construct stretches of the Chennai-Bengaluru expressway in the state of Andhra Pradesh. 
• The stock shot up 4.6% intraday and closed 1.8% higher today. It has gained over 60% in February. 

DHFL hits upper circuit on Piramal deal nod

• The RBI has approved the resolution plan of Piramal Capital and Housing Finance for the Dewan Housing Finance Corporation (DHFL). The approval comes on the heels of Piramal Capital winning the bid to acquire the insolvent housing financier. 
• The DHFL stock was locked in the upper circuit after the news broke out. However, the stock has declined by 11.6% in February. 

RailTel makes a strong debut

• Shares of the state-owned telecom infrastructure provider listed at a 16% premium today, despite weakness in the broader market.
• The company’s IPO was oversubscribed 42 times for an issue price of ₹94. The stock closed with an overall gain of 28% from the issue price. 

Nava Bharat jumps on buyback plan

• The ferroalloy manufacturer Nava Bharat Ventures has announced a ₹150 crore buyback issue comprising about 9.2% of the company’s total equity shares. The company has capped the buyback price at ₹100 per stock, a 37% premium over its closing price on Friday.
• Its shares jumped nearly 8% intraday after the news broke and closed 3% higher. The stock has gained about 26% in February.

Good to know

What is listing gain?
Listing gain is the difference between the opening price of a newly listed stock and its issue price from its public offer.

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Investment in securities markets are subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.