Market recap for 25 February 2021

Nifty50: 15,097 ▲ 115 (+0.7%)

Sensex: 51,039 ▲ 257 (+0.5%)

The markets witnessed volatility but managed to close in the green. Among the Nifty50 stocks, 35 closed in the green. 

Except for the Nifty FMCG (-0.2%) and Nifty Financial Services (-0.1%), all sectoral indices posted gains. Among them, the Nifty Metal (+3.9%) and Nifty Realty (+1.6%) led the pack.

Here are the top stories of the day. 

Maruti key to Suzuki’s five-year plan

• The Japanese automaker’s five-year plan has four pillars in its India strategy: electrification, increasing rural penetration, strengthening its SUV and CNG portfolio, and boosting production capacity to maintain a larger than 50% market share in India. 
• Through its collaboration with Toyota, Suzuki plans to push for hybrid technologies for cars made in India. It also plans to develop an EV platform for small vehicles. The carmaker’s shares have been on the decline as the market awaits February sales numbers to be released early next week. It closed nearly flat today. 

Cadila rises after US arm buys drug 

• Cadila Healthcare announced that its US subsidiary Sentynl Therapeutics (part of the Zydus Group) has acquired an experimental drug from Cyprium Therapeutics for treating Menkes disease, a rare pediatric disease that affects copper levels in the body.
• Under the agreement, Cyprium is eligible to receive up to $20 million in upfront development and regulatory cash milestones through NDA approval, as well as potential sales milestones. Shares of Cadila Healthcare rose more than 2% intraday, before closing just over 1% for the day.

RCF zooms on positive rating outlook

• Shares of the state-owned fertiliser maker zoomed 20% today, after rating agency ICRA reaffirmed the company’s debt instruments, indicating that they have low degree of credit risk. 
• The outlook on the long-term rating has been revised from stable to positive. It is expected that the additional subsidy received from the government will help to reduce short-term borrowings and interest costs for the company. 

Nureca makes a strong debut

• The home healthcare company debuted on the NSE at a 54% premium to its issue price of ₹400 and closed at ₹645, up 61%.
• The ₹100 crore public issue was subscribed nearly 40 times. Nureca sells health and wellness products such as blood pressure monitors, pulse oximeters, thermometers, and glucose-monitoring devices under the brands Dr Trust, Dr Physio and Trumom.

Closing bell

Backed by positive global cues and privatisation announcements made by the government yesterday, the markets completed the February derivatives expiry on a positive note. As for the Q3 GDP numbers, which will be announced tomorrow after market hours, the street expects growth in the range of 0.1–0.5%. The growth, though meagre, would follow two quarters of deep contraction due to the pandemic.

While the markets in general were upbeat today, the Nifty50 witnessed some downward pressure in the last hour of trading. In case the downward pressure extends, the markets could seek respite in defensive sectors.

Good to know

What is averaging down?
Averaging down is a strategy used by investors to reduce the average cost of shares. As part of this strategy, investors purchase more shares with a fixed amount of capital as the price of the shares decreases. This allows you to decrease the average price per share.

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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.