Market recap for 2 March 2021

Nifty50: 14,919 ▲ 157 (+1.0%) 

Sensex: 50,296 ▲ 447 (+0.9%)

The Sensex closed above 50,000 and the Nifty50 is just shy of the 15,000 mark. Today’s rally was broad-based as 43 of the Nifty50 stocks closed in the green.

Among the sectoral indices, Nifty Auto (+3.2%) and Nifty IT (+3.0%) were the top gainers, while the Nifty PSU Bank (-0.1%) was the sole loser.

Here are the top stories of the day.

BPCL sells stake in Numaligarh refinery

• The state-owned oil and gas company has sold its 61.65% stake in its Numaligarh refinery for ₹9,875 crore. The consortium of Oil India and Engineers India will acquire a 49% stake in the refinery, while the remaining share will be sold to the government of Assam. 
• The street expects that BPCL will pay a dividend to shareholders after the divestment of the refinery. It would come on the back of an interim dividend of ₹16 per share in Q3FY21. Further, it is believed that the sale of this refinery paves the way for overall divestment in the company. 

Airtel buys additional spectrum in 4G auction

• Bharti Airtel Ltd announced today that it has acquired radiowaves worth ₹18,699 crore in the 4G spectrum auction that concluded today.
• The company said that the new spectrum will help improve its deep indoor and in-building coverage in urban areas. Further, it will help improve coverage in villages and extend the superior experience to an additional 90 million customers in India. Importantly, all of the spectrum will enable Airtel to deliver 5G services in future. The stock closed 1.8% higher today.

Shipping Corp jumps on privatisation bids

• Shares of Shipping Corporation of India (SCI) were locked in their 20% upper circuit after news broke about the government receiving multiple bids for the company.
• The Department of Investment and Public Asset Management is looking to divest the government's entire stake (63.75%) in SCI. The stock has seen high investor interest and has gained over 40% since the start of 2021.

IGL announces hike in gas prices

• The New Delhi-based gas distributor has announced price hikes on CNG and piped natural gas by 70 paise/kg and 91 paise/kg, respectively, a hike in the range of 2-3%.  
• Shares of IGL rose 4.2% today, while positive movement was also seen in gas stocks such as GSPL (+5.0%) and Mahanagar Gas (+2.0%).

Closing bell

Taking cues from the bounce in the US markets yesterday, Indian markets continued the rise for the second day. This rise may make one forget the sharp drop that we witnessed, in Friday’s session, which saw a decisive downward movement. Further, the two-day rise in Nifty50 lacks participation from banks, which have a higher overall weightage in the index. Traders should remain nimble-footed in the days ahead and look out for signs of increasing volatility.

Good to know

What is a limit order?

This is a type of order to buy a stock at or below a specified price, or to sell a stock at or above a specified price. For instance, you can submit a limit order to purchase, say, 100 shares of XYZ company at ₹50 or less" or "sell 100 shares of XYZ at ₹100 or higher." The advantage of the limit order is that the order gets executed only if the market reaches the mentioned price.

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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.