Nifty50: 14,910 ▼19 (-0.1%)
Sensex: 50,363 ▼31 (-0.0%)
The markets opened with a gap-up and stayed in the green in the first half, but slipped back into the red towards the end of the session. The market sentiment was negative overall, as 29 of the Nifty50 stocks declined.
Among the sectoral indices, the Nifty IT (+1.2%) and Nifty FMCG (+0.9%) posted the strongest gains, while the PSU Bank (-1.3%) and Nifty Bank (-1.0%) index were the top losers.
| Top gainers | Today's change |
| Asian Paints | ▲ 4.7% |
| Dr Reddy's | ▲ 2.5% |
| HUL | ▲ 1.5% |
| Top losers | Today's change |
| Cipla | ▼ 1.5% |
| Tata Steel | ▼ 1.5% |
| ICICI Bank | ▼ 1.4% |
Here are the top stories of the day.
Paper stocks up on single-use plastic ban
- Shares of paper manufacturers rose after the government proposed a ban on single-use plastics used in the packaging of ice-cream, cigarettes, sweet boxes, etc. The ban could boost demand for packaging boards used in delivery boxes.
- Further, in the wake of the pandemic, demand for disposable paper cups, bowls, cartons, etc. is expected to rise as substitutes for single-use plastics. Stocks like Emami Paper (+19.9%), West Coast Paper (+7.9%) and Orient Paper (+4.2%) surged today, amid a weak market.
L&T strengthens order book
- The infrastructure major announced that it has secured new orders across its domestic business segments.
- Its water and effluent treatment business bagged two water supply project orders in Orissa, while its buildings and factories division received a contract to build a 10,000 TPD (tonnes per day) cement plant in Rajasthan. The size of the orders is in the range of ₹1,000–2,500 crore. Despite the positive news, the stock closed 0.6% lower in a weak market.
Gland Pharma soars on vaccine deal
- Gland Pharma has reached an agreement with the Russian Direct Investment Fund (RDIF) to produce and supply up to 25.2 crore doses of the Sputnik V COVID-19 vaccine.
- It is expected to start producing the vaccine from Q3 2021 and delivering them from Q4 2021.
- The company said that its expertise in manufacturing sterile injectables at a significant scale will help ensure a stable supply of the vaccine. The stock, which listed on the exchanges in November 2020, rose 4.8% today and is already up nearly 78% from its issue price of ₹1,500.
HG Infra bags order from NTPC
- The road infrastructure company has received an order from NTPC to transport 26.4 lakh cubic meters of pond ash (landfill material) to a road construction project.
- The project is expected to be completed in 15 months and the company won the bid at ₹95 crore. The shares of HG Infra remained flat today, but have risen about 32% in 2021.
Closing bell
Is the short-term trend up or down? This question has probably troubled traders in the last few days. The markets are moving sideways and locked in a range after rising sharply after the Union Budget on 1 February. Such range-bound movements, which sometimes run for a couple of weeks, are quite normal.
Today, the Indian markets ignored the bullishness seen in most international markets and extended the fall from the last two trading sessions. Crude oil prices are showing signs of cooling off this week and that augers well generally, as rising fuel prices were a key cause of rising inflation.
Good to know
What is an ELSS?
An ELSS, or Equity Linked Savings Scheme, is a mutual fund scheme that invests primarily in the equity market and provides tax-saving benefits. These mutual funds typically have a lock-in period of three years.
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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.