Market recap for 30 March 2021

Nifty50: 14,845 ▲ +337 (+2.3%)
Sensex: 50,136 ▲ +1,128 (+2.3%)

After a gap-up opening, the benchmark indices maintained a mostly upward trajectory throughout the day. The Nifty50 saw 46 of its constituents close in the green, indicating buying across the board. 

The buying interest also reflected among the sectoral indices, where Nifty Realty was the only sector to close in the red. Meanwhile, the Nifty IT (+2.9%) and Nifty Metal (+2.7%) were the top gainers today.

Here are the top stories of the day.  

L&T wins big orders in various businesses

• L&T has announced that it secured orders worth ₹1,000-2,500 crore for its various businesses. Among these is a four-lane bridge construction project across the River Ganga in Bihar and an order to construct a bulk water supply system in Amritsar. 
• The company has also got an order to construct a 1.2 million sq ft commercial space in Gurgaon and a paint manufacturing plant in Sandila, UP. The stock rose 2.1% today and has gained nearly 11% so far this year.

BHEL bags large order from IOCL

• The public sector engineering major has bagged a ₹400 crore order for building a sulphur recovery unit for IOCL’s Paradip refinery in Odisha. 
• The project is expected to be completed in 25 months. This is BHEL’s first order in the downstream oil and gas business. Shares of BHEL were up 0.4% today, and have gained nearly 36% in 2021. 

Nazara Tech lists at strong premium

• The shares of mobile gaming and sports media company Nazara Technologies listed at a premium of nearly 81% over its issue price of ₹1,101 per share. The ₹583-crore IPO was subscribed 175 times.

• Intraday, the stock rose to a premium of 84% over the issue price. However, it faced selling pressure towards the end of the session and closed the day with gains of 44.6%. 

Tamilnadu Petroproducts announces capex plans

• The Chennai-based chemicals manufacturer has received approval from its board to execute capacity expansion worth over ₹405 crore. 
• The company will spend about ₹240 crore in increasing its capacity of linear alkylbenzene (used in industrial cleaners and domestic detergents). Another ₹165 crore will be used to upgrade its heavy chemical plant. The stock gained 1.2% today and has risen about 13% so far this year.

Closing bell

The markets brushed aside rising Covid cases in the country and looming fears of another lockdown. The sharp decline in the rupee, which fell over 1% against the US dollar, too, had little impact on investor sentiments. Overall, the cues from international equity markets were positive and the domestic news flow was optimistic. While it all looks rosy, US Treasury bond yields have been on an upswing and are at a 14-month high, which could disturb investor sentiments in the US markets. This, coupled with sharp movements in USD-INR rates are some of the factors that need attention at the moment.

Good to know

What is the intrinsic value of a stock?
Intrinsic value is a measure of what a stock is worth, regardless of its current market price. In financial analysis, intrinsic value helps identify the underlying value of a company. When a stock is trading lower than its intrinsic value, it is said to be undervalued. Similarly, if the current market price is higher than the stock’s intrinsic value, it is considered to be overvalued.

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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.