Market recap for 1 March 2021

Nifty50: 14,761 ▲ 232 (+1.6%) 

Sensex: 49,849 ▲ 749 (+1.5%)

The markets opened with a gap-up and, despite a volatile session, closed in the green. Bharti Airtel (-4.2%) was the only stock in the Nifty50 to end lower today. 

The positive trend continued in the Nifty sectoral indices, with only the PSU Bank (-0.3%) closing marginally in the red. The Media (+4.3%) and Auto (+2.3%) indices posted the strongest gains. 

Here are the top stories of the day. 

February sales drive up auto stocks

• Auto sales witnessed an uptick across categories for the month of February. Two-wheeler major Bajaj Auto (+0.7%) reported a 6% YoY rise in total sales on account of a 13% rise in exports. Domestic two-wheeler sales grew at a meagre 1%. Meanwhile, Chennai-based TVS Motor (+3.5%) reported an 18% rise in total sales, supported by 23% growth in two-wheeler exports.  
• Among passenger vehicle (PV) makers, sales of Maruti Suzuki (+2.2%) were up 12% YoY, chiefly led by its utility and compact-vehicle segments. Tata Motors (+1.4%) and M&M (+1.5%) reported strong growth of 119% and 41%, respectively, in their domestic PV sales. 
• In the commercial vehicles (CV) segment, buses continued to show weak demand. However, truck sales were upbeat in line with the economic recovery. Tata’s total CV sales grew 21% and that for Ashok Leyland (+0.5%) grew by 19%. 

Reliance upbeat on JioPhone plan launch

• Reliance Jio unveiled its new JioPhone plan, wherein it will provide new users with a feature phone, unlimited voice calling and 2GB of data per month for two years, enabling nearly 300 million 2G users to seamlessly migrate to 4G technology.
• With this plan, the company has slashed tariffs by 11-25%. Industry analysts believe that the move will help RIL to not only retain its existing Jiophone subscribers but also pull users from competitors. Shares of RIL gained 0.8% today, whereas Bharti Airtel (-4.2%) and Vodafone Idea (-1.7%) reacted negatively.

Apollo Tricoat soars on merger plan

• The steel tubes and pipe maker has announced a merger of itself with APL Apollo. Under the merger scheme, Apollo Tricoat’s shareholders will receive one equity share in APL Apollo for every equity share held, implying a premium of 16% to its previous closing price.
• The merger will simplify the growth structure and is expected to boost overall margins and EPS. Shares of Apollo Tricoat gained 5.5% and that of APL Apollo rose (+1.1%) today.  

Puravankara enters plotted development

• The Bengaluru-based realty company aims to invest ₹825 crore as part of its foray into the plotted development segment. The company says it is looking to cater to the growing number of customers who want to buy plots. 
• As per reports, the company will start six projects in the next 6-7 months. Three of these projects will be launched in Bengaluru, two in Chennai and one in Coimbatore. Land parcels have already been tied up for the project. The stock rose 2.2% today.

Closing bell

After a sharp fall on Friday, the market bounced back with full support from all corners. Barring one, all sectoral indices and Nifty50 stocks closed in the green today. The India VIX cooled off by about 9%. Further, the manufacturing PMI, which came in at 57.5, indicated that the manufacturing sector continues to be in expansion mode. 

Major equity markets across the world were also upbeat. Such a bounce back in the markets is quite normal after a steep fall. This week, the Indian markets are likely to take cues from international news, mainly regarding the US Treasury yields and commodity price trends.

Good to know

What is a write-off?
A write-off is a reduction in the recorded amount of an asset. A write-off occurs when a company realises that an asset can no longer be viably sold, provide further use to a business, or has lower or no market value. The write off amount is deducted from the total taxable revenue.

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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.