Morning Update for 5 March 2021

Previous close (4 March 2021)

Nifty50: 15,080 ▼ 164 (-1.0%)

Sensex: 50,846 ▼ 598 (-1.1%)

Nifty Bank: 35,802 ▼ 565 (-1.5%)

In the news

Wipro to acquire UK-based Capco

• Wipro plans to acquire UK-based consultancy Capco for $1.45 billion. Capco serves financial institutions across the Americas, Europe and Asia-Pacific regions.
• Wipro said the acquisition would make it one of the largest end-to-end global technology consulting service providers to the banking and financial services industry. While the news came after market hours yesterday, shares of Wipro gained 0.7% in an overall weak market.  

NMDC gains on strong demand, firm supplies

• Sustained high domestic iron ore prices due to a supply deficit in the domestic market is putting iron-ore producers like NMDC at an advantage, according to experts.
• Further, NMDC has registered a 12% YoY growth in sales volume in February. Shares of NMDC gained 0.6% yesterday and have risen over 20% in the last month. 

Oil surges on unchanged OPEC+ output

• Against the street expectations of an increase in production, the OPEC+ decided to maintain its current output till April. This has pushed US crude up by over 5% to $64.7 a barrel. 
• The rally in crude oil fans risks of further rise in domestic fuel prices. While India has expressed concern about the rising oil prices, Saudi Arabia suggested that India use the oil in its inventory, which was bought when prices collapsed during the pandemic.

Fed comments spook US markets

• The US Fed will keep monetary policy steady even as the economy improves and inflation rises. The Fed Chairman said that economic reopening could cause temporary inflation. 
• This spooked the US equity markets as selling pressure was seen in the Dow (-1.1%) and Nasdaq (2.1%). Long term Treasury bonds also witnessed a sell-off. As a result, the yields jumped 0.07% bps to 1.55%.

Sectoral indices (Previous closing)

Global markets (at 8:30 am today)

Fact of the day

Toy company Mattel was founded in 1945 by Harold Matson and Elliot Handler. Two of Mattel's most famous products, Barbie and Ken, are named after Handler's children, Barbara and Kenneth.
Source: Stacker

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