Morning Update for 2 March 2021

Previous close (1 March 2021)

Nifty50: 14,761 ▲ 232 (+1.6%) 

Sensex: 49,849 ▲ 749 (+1.5%)

Nifty Bank: 35,296 ▲ 492 (+1.4%)

In the news

Tractor sales show double-digit growth

• Mahindra and Mahindra (+1.5%) reported a 25% YoY surge in its tractor sales in February. The sales were supported by a 43% boost in exports. 
• Escorts recorded an even stronger 30% YoY growth in sales during the same period. The company attributes the growth to strong macroeconomic conditions and strong rural demand. However, the stock witnessed selling pressure on Monday and closed 1.8% lower. 

Hero MotoCorp posts tepid sales growth

• The two-wheeler major posted a 1.4% YoY sales growth in February. Overall growth was affected by motorcycle volumes, which contracted by 3.2%.   
• Meanwhile, the company saw its scooter sales more than double from last year. A similar growth trend was seen in TVS’s scooters segment, which grew by 56%. The stocks of Hero and TVS rose nearly 4% each yesterday. 

Sterlite Tech wins big in MEA region

• The telecom equipment maker has bagged orders worth $100 million in the Middle East and Africa to build network and infrastructure for 5G wireless services.
• With the two orders, the company's order book has grown to a record high of about ₹11,300 crore. The stock closed 3.7% higher yesterday.

Excise duty cut on fuel likely

• After the OPEC+ meeting scheduled on 4 March, Indian government could take a call on reduction in excise duty on petrol and diesel, reports suggest. 
• This is to put a check on the record high fuel prices in the country. Further, high prices worsen inflation as the transportation cost of goods rises.

Events of the week

• Wednesday: Services PMI (India), Crude oil inventories, Services PMI (US)
• Thursday: Initial jobless claims (US)

Sectoral indices (Previous closing)

Global markets (at 8:30 am today)

Fact of the day

IKEA is named after the initials of founder Ingvar Kamprad, Elmtaryd—the farm on which he grew up—and Agunnaryd, the nearby village in Sweden.
Source: IKEA

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