Nifty50: 14,982 ▲ 274 (+1.8%)
Sensex: 50,781 ▲ 1,030 (+2.0%)
The markets had a positive opening. However, the benchmark indices caught a second wind after the NSE was brought back into business after 3:45 pm, with 36 of the Nifty50 stocks closing in the green.
Sectorally, the Nifty Bank (+4.0%) and the Nifty Financial Services (+3.5%) emerged the strongest, while only the Nifty IT and Nifty Pharma were the weakest and closed nearly flat.
| Top gainers | Today's change |
| HDFC Bank | ▲ 5.3% |
| Coal India | ▲ 5.2% |
| Axis Bank | ▲ 5.1% |
| Top losers | Today's change |
| UPL | ▼ 2.3% |
| Power Grid | ▼ 1.4% |
| Dr Reddy's | ▼ 1.4% |
Here are the top stories of the day.
Coal India gains on dividend plans
- The state-owned coal-mining company is planning on a second interim dividend for FY21. The final approval and the amount of the dividend will be declared on 5 March during the company’s board of directors meeting.
- Previously, the company declared an interim dividend of ₹7.5 per share, after its Q2 results. The stock gained 9.4% intraday and closed 5.2% higher.
Dilip Buildcon leads major highway project bid
- The highway construction major has emerged as the lowest bidder for phase I and II of he Bengaluru-Chennai highway project. The projects are cumulatively worth ₹2,439 crore, and are scheduled for completion in 24 months.
- After the announcement, the stock jumped about 4.2% before closing with gains of 2.3%. The stock has rallied nearly 52% this month.
Safari to receive investment from Investcorp
- Luggage maker Safari Industries has announced that global investment firm Investcorp will invest about ₹75 crore in the former via compulsory convertible debentures. The company’s management hopes to close the transaction in March 2021.
- The country’s third-largest luggage brand plans to use the money to fund growth and expansion of the business. For Q3FY21, Safari Industries had reported a net profit of ₹1.2 crore, down 87.5% YoY, while revenue from operations fell 32.6% to ₹112 crore. The stock ended flat today, but has risen nearly 13% this month.
Asian indices close in the red
- Concerns about rising inflation are affecting investor confidence on whether central banks can maintain record-low interest rates for long discounting Fed Chairman’s comments on
- Rising bond yields are already indicating that sooner or later investors could move a portion of their money into the steadier stream of income that bonds provide. The Asian markets saw selling pressure as the Japanese Nikkei 225 (-1.6%), Hong Kong’s Hang Seng (-2.9%) and China’s SSE Composite (-1.9%) all closed in red.
Closing bell
The Prime Minister Narendra Modi mentioned today that “the government has no business to be in business,” and that it will go ahead with the mantra of ‘monetise & modernise’. The government intends to monetise 100 assets and garner ₹2.5 lakh crore. The above plan could trigger investor interest in PSU stocks in the anticipation that privatisation could bring efficiency and increase profitability in these companies. Traders should brace for volatility in the days ahead as on one hand there is optimism from the PM’s speech and on the other hand, cues from Asian indices are particularly weak.
Good to know
What is return on assets?
Return on assets (ROA) indicates the management’s ability to generate profits from the available assets. For example, on an asset worth ₹100, if a company generates ₹10 as profit, its ROA is 10%. ROA varies depending on the industry. Hence, it is best to compare ROAs of companies in the same sector or the company’s previous ROA.
Yay ? or ? Nay?
We'd love your thoughts on this market recap.
The IPO of Heranba Industries is live on Upstox. Read about the public issue in our blog here. You can subscribe to the IPO with Upstox here.
Haven't tried out Upstox yet? Click here to open your account now!
Disclosures and Disclaimer
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.