Chandan Taparia, Technical & Derivative Analyst at MOFSL said, as long as Nifty remains below 14,850 level, weakness can continue and take Nifty towards the next key support at 14,600 and 14,500 levels.
The Dow Jones Industrial Average fell 99.8 points, or 0.32%, at the open to 99.69. The S&P 500 fell 38.4 points, or 1.01%, to 3,837.54, while the Nasdaq Composite dropped 391.4 points, or 2.91%, to 13,139.30 at the opening bell.
Profit before tax from India increased to $1.02 billion in 2020 from $1 billion in 2019 even though the group net profit fell 30% to $6.01 billion due to higher provisions for loan losses post Covid 19.
As long as it remains below 14,850 level, weakness can continue and take Nifty towards the next key support at 14,600 and 14,500 levels, while on the upside, hurdles are seen at 15,000 and 15,150 levels.
CLSA has maintained a 'buy' rating on Tata Motors, and raised its target price to Rs 400 from Rs 345, on the rolling forward of valuation and higher value for the auto maker's India business. The brokerage has increased its FY22-FY23 EPS estimate by 4%, driven by higher volume and a better margin for its India business.
The first two months of 2021 offered glimpses of what to expect in the rest of the calendar. Developments in global bond markets, instead of progress in Covid vaccine rollout and economic growth revival, are occupying more mind space of investors and influencing other asset classes.
Banks mixed; SBI, PNB up 2%, Kotak Mahindra Bank down 3%
Price as on 23 Feb, 2021 01:20 PM, Click on company names for their live prices.
Bharat Forge shares jump over 4% in afternoon trade
Shares of Bharat Forge rose over 4 per cent in afternoon trade on Tuesday after the company inked a pact with global aerospace and technology firm Paramount Group to manufacture armoured vehicles in the country. The stock gained 4.05 per cent to Rs 612 apiece on the BSE. On the NSE, it rose by 4.12 per cent to Rs 612.85.
Top movers of the day
Price as on 23 Feb, 2021 12:43 PM, Click on company names for their live prices.
Buying in realty, oil & gas, and capital goods stocks were supporting the movement in indices. Banking sector stocks were in focus as India Ratings revised its outlook on the sector from negative to stable for FY22. Going forward, global news flows and sector-specific developments will be key monitorable factors to impact investor sentiments.
- Gaurav Garg, Head of Research at CapitalVia Global Research Limited
Tata Motors to tap JLR synergy for SUVs
With the Indian passenger vehicles market moving further towards the SUV segment, homegrown auto major Tata Motors NSE 4.37 % is gearing up to cast a wider net in the segment targeting first time buyers to premium-end customers while driving strength from its synergies with JLR, according to a top company official.
Bitcoin slid Tuesday after a bout of volatility highlighted lingering doubts about the durability of the token’s mesmerizing rally. The cryptocurrency fell as much as 11% to below $50,000. At one point Monday the digital currency plunged 17% before paring the worst of the slide. It’s still up some 400% in the past year, a rise that dwarfs other assets.
Commodity rally helps Australia shares close nearly 1% higher
Australian shares closed nearly 1% firmer on Tuesday, as strength in commodities boosted market expectations of an improved growth outlook and lifted miners and energy stocks. The S&P/ASX 200 index was up 0.9% at 6,839.2 by the close of trade. Participants also kept an eye out for possible changes to the U.S. Federal Reserve's outlook from Chairman Jerome Powell in his testimonial before the Senate Banking Committee later in the day.
Around 4 stocks fell to touch their 52-week lows on NSE in Tuesday's session. Among the stocks that touched their 52-week lows were: Akg Exim, Novartis India, Ravinder Heights and Sanwaria Consumer.
Top gainers and losers of the day
Price as on 23 Feb, 2021 11:53 AM, Click on company names for their live prices.
Fitch rates Airtel's proposed fundraise via bonds at 'BBB-'
Fitch Ratings has assigned Bharti Airtel’s proposed US dollar-senior unsecured notes a 'BBB-' rating and the telco’s wholly-owned Mauritius arm, Network i2i’s proposed subordinated perpetual notes a 'BB' rating. This, even as Fitch estimates Bharti's Indian wireless Ebitda to rise by around 40%-50% in FY21, led by 25 million subscriber adds and monthly average revenue per user (ARPU) improvement of 10%-12%. It also expect Bharti's FY21 revenue and overall Ebitda to rise by around 18%-25%, on improvement in the Indian wireless market and continued growth in Africa, despite the pandemic-induced economic slowdown.
Heranba Industries on Tuesday received 13 per cent subscription for its Rs 625 crore IPO in the first 30 minutes of the bidding process. By 10:30 am, the issue had received bids for 9,12,134 shares, which was 13 per cent of the total issue size of 69,81,417 shares.
Adani Enterprises, EdgeConneX form JV to develop data centers in India
Adani Enterprises on Tuesday said it has signed a joint venture (JV) agreement with US' EdgeConneX to form an equal partnership company to develop and operate data centers throughout India.
China shares eked out gains on Tuesday, as optimism on economic recovery from the Covid-19 pandemic prompted fresh buying in financials and cyclical stocks, while worries over policy tightening continued to weigh on sectors with lofty valuations. The CSI300 index edged up 0.1 per cent to 5,603.68 points by the end of the morning session, while the Shanghai Composite Index gained 0.3 per cent to 3,654.77 points.
Vedanta Resources Ltd. has mandated banks to arrange investor meetings ahead of a potential bond sale, as the firm conducts an open offer for its main listed unit.
Rupee surges 16 paise to 72.33 against US dollar in early trade
The rupee appreciated 16 paise to 72.33 against the US dollar in opening trade on Tuesday tracking positive domestic equities and strong Asian currencies. At the interbank forex market, the domestic unit opened at 72.36 against the US dollar and inched higher to 72.33 against the greenback, registering a rise of 16 paise over its previous close. On Monday, the rupee had settled at 72.49 against the American currency.
Reliance Industries, TCS, Infosys top boosts for Sensex
Bond yields are on the rise and, among other factors, they are threatening equity returns. On Monday, India’s 10-year bond yield rose 1.17% to 6.20. It was ruling at a sub-6% level before the Budget but has risen since.
The issue comprises a fresh issue of up to Rs 60 crore and an offer for sale (OFS) of up to 9,015,000 equity shares, which are being sold in the price band of Rs 626-627, implying a post-issue implied market-cap of Rs 2,505-2,509 crore.
The ongoing bear market in developed world bonds is unlikely to derail global equities as yet.
ONGC, L&T, Bajaj Finance, Bajaj Finserv top Sensex gainers
OPENING BELL | Sensex rises 250 points, Nifty above 14,750
ONGC jumps 4%, UPL drops 4%
Pre-open session: Sensex climbs 290 pts, Nifty50 at 14,780
SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 45 points, or 0.31 per cent, higher at 14,720in signs that Dalal Street was headed for a positive start on Tuesday.
Tech View: Nifty looks headed for 14,350
Nifty50 formed a large bearish candle on the daily chart on Monday and continued to make lower highs and lows for the fourth straight session. The index has already slipped below its 20-day moving average and analysts said there is a good chance that Nifty may test its 50-day simple moving average at 14,345 in the coming days.
Asian stocks slip as global rally skids
Asian stocks dipped on Tuesday as rising US Treasury yields and inflation prospects led to a further rotation out of the big tech stocks responsible for a major Wall Street rally during the pandemic. The Australian S&P/ASX 200 fell 0.11 per cent and South Korea's Kospi declined 0.87 per cent in early trading. Hong Kong's Hang Seng index was flat. Japanese markets are closed for a public holiday on Tuesday.
Oil prices rise further on slow US output restart
Oil prices rose again on Tuesday after a jump in the previous session, holding near a more than 13-month high as U.S. output was slow to return after a deep freeze in Texas shut in crude production last week. Brent crude futures were up 28 cents, or 0.4 per cent, at $65.52 a barrel, while US crude oil rose 14 cents, or 0.2 per cent, to $61.84 a barrel. Both benchmarks rose nearly 4 per cent in the previous session.
US stocks mostly lower on interest rate concerns
Wall Street largely retreated on Monday, with tech stocks taking the biggest hit amid growing concerns that borrowing rates will creep higher as the US economy -- and prices -- recover. The benchmark Dow Jones Industrial Average reversed early losses to close with a gain of less than 0.1 percent at 31,521.69. But the broad-based S&P 500 fell about 0.8 per cent to finish at 3,876.5, while the tech-rich Nasdaq Composite Index was the big loser, dropping 2.5 per cent to 13,533.05.