Market recap for 5 March 2021

Nifty50: 14,938 ▼ 142 (-0.9%)

Sensex: 50,405 ▼ 440 (-0.8%)

The Indian markets continued to slide today with broad-based selling, as 38 of the Nifty50 stock fell today.

All of the sectoral indices ended in the red, with the Nifty PSU Bank (-3.9%) and Nifty Metal (-2.7%) indices falling the most.

Here are the top stories of the day.  

Oil and gas stocks surge on rising crude

• Stocks of oil and gas majors such as ONGC (+2.4%) and GAIL (+1.7%) rose amid a weak market, as crude oil prices rose 6% over the last two days. Crude’s ongoing rise was extended after the OPEC+ nations announced that they will maintain the present production levels through April. 
• Further, oil exploration companies such as HOEC (+2.5%) and Aban Offshore (+4.9%) bucked the weak market trend and closed with strong gains.

Voda-Idea fundraiser hits bad network

• Vodafone-Idea’s fundraising plans with a consortium of lenders, led by Oak Hill, has hit a bottleneck over unresolved funding terms, reports suggest.
• The debt-laden telecom company was reportedly in talks to raise $2 billion (~₹ 15,000 crore) in an attempt to expand its 4G network. The fundraiser was part of the ₹25,000 that the company planned to raise via a combination of debt and equity. The stock closed 3.1% down today. 

Heranba makes a strong market debut

• The agri-chemicals maker listed at a 43% premium on the exchanges today on the back of strong demand for the stock. The public issue, which closed last week, was oversubscribed 83 times.
• Heranba is the leading producer of pesticides and insecticides, with 50% of its revenues coming from exports. The stock closed at ₹826, about 32% higher than its issue price of ₹627.

Quick Heal surges on buyback plan

• Shares of the security software maker shot up 8% intraday to hit a 52-week high after the company announced that its board will consider a buyback on 10 March.
• The company had a weak Q3, with profits declining by 24% YoY due to higher R&D and advertisement expenses. Its share has languished since the start of Q3 and has underperformed the broader indices. The buyback announcement fueled interest in the stock, which closed 4.4% higher in an otherwise weak market.

Closing bell

While the Nifty50 gained 2.8% on a weekly basis, the sentiments toward the end of the week were not particularly encouraging. First, most international equity markets were weak today. Second, the sudden rise in the 10-year government bond yields and the rising US dollar index are a cause of concern for the Indian equity markets, too. Further, foreign investors have been net sellers so far this month after a positive start to 2021. Given the 15% rise in India VIX in the last two days, there could be a rise in volatility in the coming week.

Good to know

What is an ETF?

An ETF or exchange-traded fund is a basket of stocks similar to a mutual fund. However, an ETF can be traded on an exchange within the day like a stock and witness price fluctuations throughout the trading session. In contrast, mutual funds only update their net asset value or NAV at the end of the day.

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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.