Indian Market Outlook
The Key benchmark indices rose over two percent over the week however fell 1.83 percent in last two consecutive days due to rising 10 Year US bond yields. The 10-year U.S. bond yield hit a new one-year high of 1.626%. Another factor weighing on investor sentiment is the rise in crude oil prices. Brent crude touched $69 a barrel this week rose 5.15% over the week. Nifty ended the week 2.81 percent higher at 14938 points while Sensex ended 2.66 percent higher at 50405 points. Broader market outperformed the key benchmark indices. BSE Midcap index ended 3.05 percent higher, while the BSE Small cap index rose 3.87 percent, during the course of the week. Foreign Institutional Investors were the net buyers during the week; bought equities worth Rs.2199 crore while the DIIs were the net sellers of Rs.2635 crore. Bank Nifty underperformaed the key benchmark indices during the week. A rise in bond yields brings market losses for banks on their bond holdings. Auto sales numbers for February 2021 have been fairly positive with passenger vehicle makers posted impressive double-digit YoY growth. GDP grew 0.4% YoY in 3QFY21, primarily because of downward revision from 4.1% to 3.3% in 3QFY20. Without base revision, there was a decline of 0.6% YoY in the quarter.Going forward In the coming week, the market will be mainly focusing on the expectations on whether the Fed, in its upcoming meeting on (March 16-17), will maintain its accommodative stance in a rising bond yield market. On Macro Front CPI Inflation for February 2021 and Industrial Production for January 2021 would be announced on 12th March, 2021.
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Latest Spot Price (in US $)
|Precious Metal||Current Price||Change (%)||3 Month||6 Month||1 Year|
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Global Weekly Events
|Mar 10,2021||USD||Core CPI (MoM) (Feb)||0.2%||0.1%|
|Mar 10,2021||USD||Crude Oil Inventories||–||21.563M|
|Mar 12,2021||GBP||GDP (QoQ)||–||1.0%|
|Mar 12,2021||INR||Industrial Production (YoY) (Jan)||-0.2%||1.0%|
|Mar 12,2021||INR||CPI (YoY) (Feb)||4.45%||4.06%|
|Mar 13,2021||USD||US Federal Budget||–||-430.0B|
Domestic Economy Indicators
|RBI Policy Rate||Policy Repo Rate||4.00%||4.00%|
|Reverse Repo Rate||3.25%||3.25%|
|Inflation Rate||Wholesale Price Index||2.03%||1.22%|
|Consumer Price Index||4.06%||4.59%|
|Trade Data||Export ($ Million)||27450||27240|
Source: Financial Express, Investing, NDTV, BSE, Livemint,Economic Times
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|Domestic Indices||Closing(5th March)||Change||%Change|
|Net Inflow (Cr)||FII||DII|
|Top Gainers||Closing Price||Prev Close||Chg (%)|
|Kotak Mahindra Bank||1922.50||1780.35||7.98|
|Top Losers||Closing Price||Prev Close||Chg (%)|
Only 40% of government bonds auctioned by the Reserve Bank of India since the Union Budget and the monetary policy review that followed have been bought by investors as part of primary auctions. The rest have either devolved on primary dealers or the sales have been partially cancelled. This, as the expectation on interest rates between the central bank and the markets continue to diverge. Data compiled by BloombergQuint showed that 43% of the bonds auctioned have devolved on primary dealers. Including auctions that were partly cancelled without being devolved, and securities where an additional amount was retained, the total amount raised is just 40.8% of what was up for auction.
The Indian central bank’s conventional as well as unconventional policy responses to support the economy through the pandemic failed to reduce the government’s borrowing costs by a lot, says a new study. Policy actions by the Reserve Bank of India have had only a modest impact on the ‘term premium’ –- an indicator of the market’s expectations of future interest rates, according to the research authored by Rajeswari Sengupta of the RBI-funded Indira Gandhi Institute of Development Research in Mumbai, and Harsh Vardhan of the SP Jain Institute of Management and Research. There were limits to which monetary policy alone could provide an economic stimulus during a crisis, they wrote in the ‘Ideas for India’ portal.
The government is considering launching a production linked incentive (PLI) scheme in the chemical sector to boost domestic manufacturing and exports. Addressing a webinar on ‘Implementation Strategy of Budget Announcement 2021-22’, Chemicals and Fertilisers Minister D V Sadananda Gowda on Friday said the government is working on a consultative approach in forming the policies for India’s chemicals and petrochemicals sector.
New models of all cars will have to provide airbags for the front passenger seat from April 1 while all existing models can be sold after August 31 this year, only after being fitted with this safety gear. This mandatory provision was notified by the road transport ministry on Tuesday. “This has been mandated as an important safety feature, and is also based on the suggestions of the Supreme Court Committee on Road Safety,” the ministry said.
Lenders to Bhushan Power & Steel Ltd. have agreed to terms set by JSW Steel Ltd. for purchasing the assets of the insolvent steelmaker, according to two people with direct knowledge of the matter. A majority of the financial creditors on March 5 voted in favour of accepting JSW Steel’s Rs 19,350-crore offer for the sale, on a provisional basis, the people cited above told BloombergQuint on the condition of anonymity. A proposal needs at least 66% votes to be cleared by the committee of creditors.
Investment trust IndiGrid on Friday inked an agreement to acquire 100 per cent equity stake in NER II Transmission from Sterlite Power for about Rs 4,625 crore. The completion of acquisition would depend upon receipt of unitholders’ consent, regulatory and other relevant approvals, it said. “India Grid Trust (IndiGrid) signed share purchase agreement on March 5, 2021 for acquisition of 100 per cent shareholding and economic interest, in one or more tranches, in NER II Transmission Ltd from Sterlite Grid 4 Ltd,” a company statement said.
Multiplex major PVR on Friday announced the launch of a new six-screen property in Mysuru, Karnataka. “PVR Cinemas with this launch strengthens its presence in Karnataka with 109 screens in 16 properties and 292 screens across 47 properties in South. Located in the heart of India’s silk city, the new PVR Cinemas spreads across an area of 32,240 sq feet and can accommodate a total of 1,078 audiences,” the company said in a statement.
S. employers added more jobs than forecast in February and the unemployment rate declined, suggesting the labor market is clawing its way forward again following several disappointing months. Payrolls increased 379,000 after an upwardly revised 166,000 January increase, according to a Labor Department report Friday. Economists in a Bloomberg survey projected a 200,000 February gain.
(Source:Bloomberg Quint, Economic Times, BusinessToday, Business Standard, Financial Express,Investing, Moneycontrol, livemint)
Forthcoming Corporate Actions
|Security Name||Ex-Date||Purpose||Security Name||Ex-Date||Purpose|
|POWERGRID||08-Mar-21||Interim Dividend – Rs. – 4.00||TRIOMERC||09-Mar-21||Stock Split From Rs.10/- to Rs.2/-|
|SACHEMT||08-Mar-21||Bonus issue 1:10||DICIND||10-Mar-21||Final Dividend – Rs. – 6.00|
|TELESYS||08-Mar-21||E.G.M.||KIRLFER||10-Mar-21||Interim Dividend – Rs. – 2.00|
|KEI||09-Mar-21||Interim Dividend – Rs. – 2.00||MARICO||10-Mar-21||Interim Dividend – Rs. – 4.50|
|SELMCL||09-Mar-21||Resolution Plan -Suspension||WANBURY||10-Mar-21||E.G.M.|
|THANGAMAYL||09-Mar-21||Interim Dividend – Rs. – 6.00||WEPSOLN||10-Mar-21||Right Issue of Equity Shares|
|TRIOMERC||09-Mar-21||Bonus issue 1:6|
Source:BSE, Elite wealth Research
Upcoming Board Meetings
|Symbol||Purpose||BM Date||Symbol||Purpose||BM Date|
|MOLDTEK||Interim Dividend||08-Mar-21||VISIONCO||Quarterly Results||10-Mar-21|
|AUTOLITIND||Preferential Issue;Quarterly Results||09-Mar-21||RGL||Interim Dividend||11-Mar-21|
|MCDHOLDING||Quarterly Results||09-Mar-21||CHROMATIC||Quarterly Results||12-Mar-21|
|QUICKHEAL||ESOP Plan;Buy Back of Shares||10-Mar-21||RATHIST||General||12-Mar-21|
Source: BSE, Elite wealth Research
Major Economy Indicators
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