Market recap for 15 March 2021

Nifty50: 14,929 ▼ 101 (-0.6%)

Sensex: 50,395 ▼ 397 (-0.7%)

After a weak opening, the markets kept sliding down but saw some buying interest toward the latter half of the session. However, weakness persisted and 27 of the Nifty50 stocks closed in the red. 

Among the Nifty sectoral indices, Metal (+1.0%) and IT (+0.5%) were top gainers, whereas Media (-1.4%) and Pharma (-1.3%) lost the most ground.

Here are the top stories of the day.  

MTAR lists at bumper premium

• Shares of the Hyderabad-based precision engineering company debuted on the NSE with an 83% premium over their issue price of ₹575. The stock was able to hold on to the gains till the close of the day.  
• This week is packed with IPOs. Laxmi Organic and Craftsman Automation opened for subscription, Kalyan Jewellers is due for tomorrow, while Suryoday Small Finance Bank and Nazara Technologies open on Wednesday. You can subscribe to these IPOs with Upstox here.  

JSPL sales volume rises on yearly basis

• Metal major, Jindal Steel and Power reported a 14% YoY growth in sales for February. The company was optimistic about growth and said that it will enhance production further, without any new capex in this fiscal. 
• The share of exports rose to 26% of the total sales volume, after falling for five months in a row. That is because the company focussed on the more profitable international market. The stock gained 2.4% in a weak market. 

Godawari Power cleared for capacity expansion

• The Raipur-based iron-ore pellet maker has received government clearance to enhance the capacity of its plant from 21 lakh to 24 lakh tons per annum. 
• In addition to the capacity expansion, the company has been permitted to modernise the existing plant. The company plans to fund these projects through internal accruals. The stock surged nearly 14% and also hit its 52-week high today. 

Ahluwalia Contracts gains on project win

• Shares of engineering and construction company Ahluwalia Contracts gained (+1.7%) in an otherwise weak market. The company has bagged an order worth ₹128 crore for the construction of a state guest house in Bihar.
• With this, its total order inflow in FY21 stood at ₹2,214 crore. Since the start of 2021, its shares have gained nearly 15%. 

Closing bell

At one point, it seemed that markets would throw in the towel due to the relentless selling pressure. The consumer and wholesale inflation numbers are higher than street expectations. The culprit—fuel prices—are not showing any signs of cooling off. This is the cause of concern for the markets since rising inflation does not leave room for any further rate cuts. Today, the buying in metals and IT supported the benchmark indices. However, if the markets tread lower, traders could lose confidence, at least in the short term.

Good to know

What is technical analysis?

Technical analysis is the study of past market data using charts to forecast the direction of price movement. The three basic principles of technical analysis are a) stock price reveals everything, b) stock price move in trends and c) price patterns repeat.

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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.