Share Market Highlights: Sensex, Nifty end flat after hitting record highs; ITC, HDFC top losers

Sensex, Nifty Highlights on February 16: Share market indices turned volatile after rising to new record highs on Tuesday, and ended range bound, tracking cues from global equities. Sensex ended 49 points lower at 52,104 and Nifty fell by 1.25 points to 15,313. Sun Pharma, ITC, HDFC were trading among the top losers today while RIL, L&T, Maruti were among the top gainers. Today, Sensex hit a record high of 52,516 and Nifty hit a lifetime high of 15,431. December quarterly earnings announcements by Nestle India, Varun Beverages, Schaeffler India, G M Polyplast and R Systems International will also set the tone for the stock market today. Yesterday, Sensex climbed 609 points to end at 52,154 and Nifty gained 151 points to 15,314.

Here's a look at the updates of the market action on BSE and NSE today

3. 55 PM: Closing session

Share market indices turned volatile after rising to new record highs on Tuesday, and ended range bound, tracking cues from global equities. Sensex ended 49 points lower at 52,104 and Nifty fell by 1.25 points to 15,313. Sun Pharma, ITC, HDFC were trading among the top losers today while RIL, L&T, Maruti were among the top gainers. Today, Sensex hit a record high of 52,516 and Nifty hit a lifetime high of 15,431.

3. 40 PM: India's Economic outlook

JM Financial said in its note today,"We hosted Dr. KV Subramanian, Chief Economic Advisor to the Government of India for an interaction with investors. The key message that emerged was the government's formula for sustainable growth. All measures by the Central government are from the perspective of and entail a much-longer time-horizon. Hence, the assessment of the fiscal stimuli (incl. FY22 budgeted spending as flat) from a one-year perspective could lead to a very mypoic view on the matter. The government is working on both demand and supply measures, the latter through-i) improved quality of spending (capex over revenue expenditure) and ii) reforms that enhance productivity of labour and capital (labour reforms, DFI, MSME definition changes, PLI scheme, financial sector reforms)- to kick-start investments and ensure sustained demand growth with low inflation."

3. 34PM: Ahluwalia Contracts outlook

Centrum Broking said,"We expect ACIL's revenue CAGR of 24% over FY21-23 with earnings CAGR of 78% (on a very low base due to margin disruption). Our revenue estimate for FY22/23 factors execution rate of 28%/35% of opening OB vs. 10-year average conversion rate of ~40% While ACIL's margins have remained muted over last 6 quarters, the margin trajectory is likely to improve led by completion of provisions related to legacy projects and pass through of higher raw material costs through price variation clause in contracts. ACIL's balance sheet meanwhile remains robust (net cash: Rs1.7bn) with continued FCF generation. Stock trades at 10.3x FY23 EPS and offers potential to re-rate. We value ACIL at 13x FY23 EPS and have a price target of Rs390. Maintain Buy."

3. 22PM: GPIL outlook

Centrum Broking said,"We believe GPIL's performance was impacted due to late resumption of its plant which caters to domestic as well as export markets. Further we believe GPIL could benefit from strong tailwinds for RSFT/DSFT segment and entry into new markets such as south. We retain our FY21E/22E earnings and introduce FY23E estimates and retain Buy recommendation with DCF-based revised target price of Rs. 1,332 implying 14.8x FY23E EPS. Risks to our call include sharp increase in of taxation, significant increase in competitive intensity and disruption in sales due to intermittent lockdowns.

3. 15PM: ONGC outlook

Centrum Broking said,"ONGC reported -32/-1% yoy/qoq decline in EBITDA to Rs83.4bn (CenE 82bn) and adjusted PAT of Rs13.7bn (-67/-63% yoy/qoq, CenE22.9bn). We factor a decline in production and realization estimates, increase in tax outflow due to Vivaad se Vishwas scheme of the government, and hence we have revised downward our FY21e EPS by 17%, even as FY22e EPS sees a marginal upgrade by 2% due to production ramp up from KG fields. While current valuations of 3.6x EV/E FY23E and 7.7x PER FY23E are attractive, there is little to excite investors in near term, with muted EPS growth, uncertain production prospects and deteriorating Cash flows. Maintain ADD."

3.00 PM: Gold and silver outlook

Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research said,"LBMA Gold Spot trading below $1824 levels, Price is supported declined in the US dollar, Price are sustaining above the multi month low providing hints of short covering may happen in the coming session. Downside support is $1810 - $1780 levels, Resistance is at $1840 - $1855 levels. MCX Gold February trading with positive momentum above 47000, The market is trading in a tight range yesterday due to US bank closing, Downside support for the metal is 46800 - 46200. Resistance for the metal is 47700."

On silver he added,: "MCX Silver is trading above 70000 levels and as per my last week forecast silver is outperforming the gold due to fresh industrial demand, however traders need to be cautious on the higher levels as high volatility on this level is expected. Downside support is 69400 - 68500 levels, Resistance is at 70700 - 71400 levels."

2. 51PM: Somany Ceramics outlook

Amarjeet Maurya - AVP - Mid Caps, Angel Broking said," Somany Ceramics Ltd (SCL) is a manufacturer and trader of a complete decor solutions and its extensive range of products include Ceramic Wall and Floor Tiles, Polished Vitrified Tiles etc.q.Shift from unorganized (currently - 60%) to organized (currently -40%) tiles markets will benefit branded players like SCL.Further, Exports anti-dumping duty levied by the US on Chinese players as well as other countries, has been absorbing the Morbi based unorganised volumes, thus improving the demand and pricing scenario for organized players like SCL. We expect SCL to report healthy bottom-line over FY2020-23E due to strong brand and wide distribution network  and improvement in operating margins."

2. 40 PM: SIS share rises over 9% as firm to buy back shares worth Rs 100 crore

Stock of one of the leading private security companies SIS rose over 8% in trade today after the firm announced a buyback of shares  worth Rs 100 crore.

SIS share opened with a gain of 3.3% at Rs 444 today against previous close of Rs 425.75 on BSE. The stock touched an intraday high of Rs 465, rising 9.12% on BSE. SIS share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The mid cap share was trading 2.59% higher at Rs 437.20 on BSE in afternoon session. Market cap of the firm rose to Rs 6,488 crore on BSE. 

SIS share rises over 9% as firm to buy back shares worth Rs 100 crore

2. 30 PM: Wipro outlook

Reliance Research in its note said,"After making double-top in range of Rs460-465, the stock witnessed sharp decline. Recently, the stock has witnessed minor pullback near to its short-term averages. This gives an opportunity to add shorts, as the stock is expected to underperform over the next few weeks. Short position can be initiated in the range of Rs.436-442 for the target of Rs.385 with closing stop loss of Rs.465."

2. 16PM: RailTel IPO outlook

"At the higher end of the price band, RailTel IPO is priced at a PE ratio of ~21.4 times FY20 earnings per share. This seems to be fairly priced. The company ranks better in terms of margins & return ratios as compared to competitors in the Information and Communication Tech space, as well as the telecom space. Further, it is debt-free and has paid dividends consistently. The management is also confident about steady growth in the coming years. Given steady margins and return ratios, debt-free status, consistent dividends, reasonable valuations, and limited concerns we remain positive on the prospects of the issue," INDMoney.

2.01 PM: Jet Airways share price hits 5% lower circuit

Jet Airways share price were trading at 5% lower circuit on Tuesday's early trade after the cash-strapped domestic carrier announced it on Monday a standalone loss of Rs 2,841.45 crore for the year ended March 2020.

Jet Airways share price earlier today opened with a loss of 5% to an intraday low of Rs 104.50 on BSE as against the last close of Rs 110. The stock has fallen 9.7 in the last 2 days.

The share has risen 4.5% in one week, and 279% in one year. Althoug, it has fallen 17% in a month. Year-to-date, the stock is down 14%.

Why Jet Airways share hit lower circuit of 5% today

1. 55PM: Oil prices rise on shut wells, refineries in Texas

Oil prices rose on Tuesday as a cold front shut wells and refineries in Texas, the biggest crude producing state in the United States, the world's biggest oil producer. Prices also gained as Yemen's Iran-aligned Houthi group said it struck airports in Saudi Arabia with drones, raising supply concerns in the world's biggest oil exporter, and on optimism for a global economic recovery amid accelerated COVID-19 vaccine rollouts.

Oil prices rise on shut wells, refineries in Texas; WTI reaches $60.09 per barrel

1. 40 PM: Market update

Share market indices turned voaltile after rising to new record highs on Tuesday, and tarded range bound, tracking cues from global equities. Sensex traded 33 points lower at 52,120 and Nifty fell by 16 points to 15,298. In broader market, the S&P BSE Mid-Cap index was up 0.32% while the S&P BSE Small-Cap index rose 0.48%. The market breadth was almost even on the BSE, with 1373 shares rising, 1316 shares falling and a total of 156 shares unchanged.

1. 33 PM: Nureca IPO subscribed 5.73 times on Day 1

The initial public offer IPO of Nureca Ltd, was subscribed 5.73 times on the first day of subscription on Monday. The share sale received bids for 80,33,305 shares against 14,01,595 shares on offer, as per data available with the NSE.

The IPO of the firm, which is engaged in the business of home healthcare and wellness products, saw portion for non-institutional investors subscribed by 54 per cent. Issue size reserved for retail individual investors' (RIIs) was subscribed 31.22 times. The IPO opened on February 15 with price range of Rs 396-400 per share.

Nureca IPO subscribed 5.73 times on Day 1, retail portion sees 31.22 times applications

1. 20 PM: Gujarat Pipavav Port outloook

Centrum Broking said in its note,"GPPL's container cargo growth has trailed the market over last two quarters. However, valuations at 6.4x FY23E EBITDA and 12.3x PE are inexpensive and protect downside. With continued revival in EXIM and added benefit of DFC connectivity by mid/end 2021, we expect 13% CAGR in container cargo and 34% CAGR in earnings over FY21-23. We roll over our DCF based price target to Mar-22 basis to Rs109. Maintain Buy."

1. 12PM: Oil India Q3 outloook

Centrum Broking said in its note,"OIL continues its efforts to mitigate the impact of the fire at Baghjan, with the loss of production from the same at ~1% of overall output. Having said that, this incident, coupled with lockdown related constraints underpins our assumptions of 4/4% yoy production dip in Oil/Gas in FY21E and grow by 0%/2.5% yoy in FY22. Given the 9M performance due to higher tax credit, we revise FY21E EPS by 52% but reduce FY22e eps by 5% to factor lower production. Target price raised to Rs120/sh, just 3% upside from here. Reiterate ADD."

12. 55 PM: Voltas Q3 outlook

Amarjeet Maurya - AVP - Mid Caps, Angel Broking said,"Voltas is engaged in the business of air conditioning, refrigeration, engineering product services, electro - mechanical projects as an EPC contractor both in domestic and international geographies. Going forward, we expect healhy top-line and bottom-line growth on back of strong growth in the room AC segment, gradual improvement in order inflow & execution, recent price hike. Further, we believe Volt-Beko is likely to be the next driver for growth of the consumer segment going ahead."

12. 40 PM: Varun Beverages Q3 outlook

Amarjeet Maurya - AVP - Mid Caps, Angel Broking said," During 4QCY20, Varun Beverages Ltd's (VBL) sales grew by ~9% yoy to ~Rs1,331cr led by healthy ~6% yoy increase in volume and balance from improvement in realisation. EBITDA stood at ~Rs172, while EBITDA margins improved by 346 bps in 4QCY20 on account of sustainable cost-optimization measures.On the bottom-line front, losses reduced significantly to Rs7cr from Rs54cr in 4QCY19. Overall 4QCY20, results are above expectation. Hence, we are positive on stock."

12. 23 PM: L&T Finance outlook

Jyoti Roy - DVP- Equity Strategist, Angel Broking said,"L&T finance holdings is one of the leading NBFC in India with a strong presence across various segments including MFI, Housing, two wheeler, tractor and wholesale segment. Over  the past few years the company has steadily been increasing its focus on high ROE businesses like tractors, two wheelers, MFI and housing loans. The rural and the housing segment account for 56.5% of the company's AUM at the end of Q2FY21 as compared to 51.5% in FY19. The company has reported very strong disbursement in Q3FY21 at Rs. 10,772 crore which is significantly higher than Q3FY19. We expect disbursements to improve further in 4QFY21 and expect the company to post strong sequential loan growth from Q4FY21. Gross Stage 3 and Net Stage 3 assets stood at 5.12% and 1.92% at the end of Q3FY21 while provisioning coverage ratio stood at 64%. The company is also carrying additional provisioning of Rs. 2,226 crore (2.43% of AUM) which provides comfort on asset quality front. The company has also raised capital through a right issue of Rs. 3000 crore which should take care of growth capital for the next few years. We have a BUY rating on the stock with a target price of Rs.  116 (1.5xFY22 ABVPS)."

12. 10 PM: Garden Reach Shipbuilders & Engineers outlook

LKP Securties said in its note today," We witnessed a great set of result in Q3 FY21 as the company operated at full strength as Covid impact faded and as a result of this the execution process of various projects gained momentum. With various project deliveries lined up over next 4-5 years, we foresee an exponential rise in financials of GRSE. This will be stemming from multiple project overlapping. Additionally, margins will also gain momentum as seen in Q2 and Q3 in line with the revenue rise and cost savings. Balance sheet contains enough cash to make up for any payment delays from GOI and the company may not require any debt to be raised in the medium term. With an order book of 19x FY 20 revenues, strong FCF, robust dividend yield, we continue to be upbeat on GRSE. We roll over our estimates and target to FY 23E and maintain BUY, with a target of Rs 251 (at 10x FY 23E earnings) as the stock is looking very attractive currently at 7.1x FY23E earnings."

11. 57 AM: Nureca IPO

Yash Gupta Equity Research Associate, Angel Broking said,"Nureca limited is a B2C company engaged in the business of home healthcare and wellness products. The company enables their customers with tools to help them monitor chronic ailments and other diseases, to improve their lifestyle. Nureca is a digital first company wherein they sell their products through online channel partners such as e-commerce players, distributors and retailer. Further, they also sell their products through their own website drtrust.in.

Nureca classifies their products portfolio under the 5 categories such as Chronic Device Products, Orthopedic Products, Mother and Child Products, Nutrition Supplements and Lifestyle Products.

During Covid-19, company's products such as oximeter, gluco meter, nebulizer and BP monitor were categorized under the essential goods and their operations were not shut down during this pandemic.

On valuation front, company is coming up with IPO at price of 400 crores with PE levels of 43.7 on FY2020 basis, even company has done very well in first half of FY2021 also due to covid 19. We have a positive outlook for the IPO."

11. 41AM: Astrazeneca Pharma share rises 11%

Astrazeneca Pharma India share rose over 11% in trade today after World Health Organisation (WHO) gave emergency use approval (EUA) to two versions of AstraZeneca-Oxford's COVID-19 vaccine, allowing these shots to be rolled out globally through COVAX.

The mid cap share has gained after 2 days of consecutive fall.

Astrazeneca Pharma share rises 11% after WHO gives emergency use nod to COVID-19 vaccine

11. 33 AM: YES Bank share falls for third straight session

YES Bank share was trading marginally lower in Tuesday's session on BSE and NSE. The stock of the private lender opened at its previous close of Rs 16.25 and touched the day's high of Rs 16.35. Later, the stock erased gains and traded 1.23% lower at an intraday low of Rs 16.35. The stock has declined 2.12% in three sessions.

YES Bank stock trades higher than 100-day moving averages but lower than 5, 20, 50 and 200-day moving averages.

YES Bank share falls for third straight session

11. 20 AM: Bitcoin falls short of $50,000 as investors take profit

Bitcoin stalled just short of the $50,000 mark on Monday and other cryptocurrencies slipped, as investors took profit from a record-breaking rally that is being driven by a worldwide shift in investor and public attitudes towards digital assets.

Bitcoin fell as much as 5.6% to $45,914 in Asian trading hours, after having posting a record high of $49,714.66 on Sunday. Rival crypto ethereum slid more than 8%, though both later pared some of those losses.

Bitcoin falls short of $50,000 as investors take profit

11. 10 AM: Sensex breaches 52,000 level: What should equity investors do?

Stock market has breached a new high of 52,000 level on Monday, bringing cheer to equity investors. The benchmark index BSE Sensex has surged 9% year to date. From the lows of March, the index has doubled. Most equity analysts believe the bull run to continue on account of strong Q3 earnings. They believe there is no major negative clue to pull the stock markets down anytime soon.

Sensex breaches 52,000 level: What should equity investors do?

11.01 AM: Nifty technical outlook

Sumeet Bagadia, Executive Director, Choice Broking said," On the technical Front, Nifty has been trading in uncharted territory since the last few days and it seems further upside would be there as the benchmark index has changed its dynamics to new levels. Furthermore, Nifty has been trading above 50 DMA which is a bullish sign for upcoming sessions and at present level it has a good support level at 15000 while upside resistance zone at 15400-15500 levels. Going ahead investors will continue to keep a close eye on global cues."

10. 40 AM: Apollo Hospitals 3QFY21 result

Yash Gupta - Equity Research Associate, Angel Broking said,"Apollo hospitals reported very good set of numbers for Q3FY21, Apollo hospital enterprises reported revenue from operations for Q3FY21 at Rs 2759.84 crores down by 5% YoY from Rs 2911.74 crores in Q3FY20. Healthcare business reported revenue of 1442 crores along with pharmacy reported revenue of 1126.3 crores. Profit before tax for the quarter up by 17% at Rs 169.80 crores in Q3FY21 as compared to Rs 144.94 crores in Q3FY20. Profit after tax for the quarter at Rs 134.16 crores in Q3FY21 as compared to Rs 90 crores up by 48% in Q3FY20.

Apollo hospital reported a very good set of numbers for the quarter ended 31st December 2020, hospital business back to pre covid levels earlier than expected as well for the pharmacy business. Company EBITDA margins are better than the expected and we expect the company to maintain its margins in coming quarters. We maintain our positive outlook towards Apollo hospital."

10. 33 AM: Sensex at 52K

Investor confidence in share market shows no signs of abating. The benchmark Sensex has breached the psychological 50,000-mark thanks to roll out of COVID vaccines, better-than-expected corporate earnings in third quarter of FY21 and ample global liquidity. The upside momentum seems to continue with record FII inflows and Robinhood investors taking direct participation in equities.

Sensex at 52K: Take 25% profits off table; consider core sectors, PSU stocks

10. 20 AM: This chemical stock gave 300% returns in 11 months

Deepak Nitrite share price surged nearly 12 per cent to hit all-time high of Rs 1,240 in intra-day on the Bombay Stock Exchange on Monday after the chemical manufacturing company reported better-than expected earnings during December quarter of 2020. Shares of Deepak Nitrite, which is one of the leading chemical intermediates companies in India, have rallied 300 per cent from its 52-week low of Rs 310 as on March 19, 2020, on improving demand scenario across several end-user industries such as plywood, pharma, adhesives, sanitisers, chemicals and paints.

This chemical stock gave 300% returns in 11 months

10. 13 AM: Morning view of market

On markets opening --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"The index continued its upward momentum with yet another gap up opening. We are steadily heading to 15500 which should be the next target and level of resistance for the Nifty. While a good support lies at 15100, traders should lock in profits at regular intervals and update stops as well. Since we are at market highs any drop or correction can make the markets volatile. Hence extreme caution should be exercised at all times.

10.05 AM: RailTel IPO opens today

RailTel Corporation IPO- the seventh public offering of 2021-will open for subscription today. The IPO is available at a price band of Rs 93-94 per share, with face value of Rs 10 apiece. The public offer of the Mini-Ratna company will close on February 18.

State-owned RailTel Corporation of India IPO is a complete offer for sale of 8,71,53,369 equity shares by the Government of India. and is worth Rs 819.24-crore

RailTel IPO opens today: Price band, lot size, issue size & other details

9. 55 AM: Stocks to watch today on February 16

Jet Airways, Titan, Future Retail, AstraZeneca Pharma, Indian Bank, TCS among others are the top stocks to watch out for in Tuesday's trading session

Stocks in news: Jet Airways, Titan, Future Retail, AstraZeneca Pharma, Indian Bank, TCS

9. 40 AM: Morning view on the market

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said,"Bull markets have an uncanny ability to climb many walls of worries. And, this bull market, in typical style, is consistently climbing many such walls. The border stress with China, the farmers' strike, inflation, crude spike...are no longer issues of concern. The bulls are focussed on growth & earnings recovery and the incredibly improving Covid incidence. FPIs feel that India has the best post- Covid rebound story. In such a favourable setting, investors should remain invested with occasional profit booking. Bank Nifty is fast catching up with the rest of Nifty. IT has still room to go up. There is value in pockets of mid-small-caps."

9. 30 AM: Nifty technical outlook

Reliance Research said in its note," NSE-NIFTY surpassed its near-term hurdle of 15,250-level convincingly and recorded new high of 15,340. Overall market breadth remained negative and major sectors remained mix. Major technical indicators were in buy mode. As mentioned earlier, a stable move above 15,250-level will strengthen the index for its next leg of up-move, which could take the index towards 15,500-15,800-16,000-level. In case of decline, the index will find support at around 15,000-level initially and 14,850-level subsequently. 

As for the day, support is placed at around 15,259 and then at 15,203 levels, while resistance is observed at 15,355 and then at 15,396 levels."

9. 25 AM: Global markets

Overseas, Asian stocks rose on Tuesday as optimism about the global economic recovery and expectations of low interest rates drive investments into riskier assets.

The mainland Chinese markets will remain closed for Lunar New Year through Wednesday. The U.S. stock market was closed on Monday for Presidents Day.

On the coronavirus front, the World Health Organization gave emergency use approval to AstraZeneca's Covid-19 vaccines on Monday, allowing distribution to some of the world's poorest countries to begin.

9. 15 AM:Opening session

Share market indices opened on a bullish note on Tuesday, amid positive global equities. Sensex traded 250 points higher at 52,400 and Nifty gained 55 points to 15,371. SGX Nifty on the Singapore Exchange was rising by 90 points, indicating a positive trend in domestic grounds today.

9. 05 AM: FII action

Foreign portfolio investors (FPIs) bought shares worth Rs 1,234.15 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,048.55 crore in the Indian equity market on 15 February, provisional data showed.

8. 50 AM: Rupee closing

On the currency front, Indian Rupee gained by 7 paise to close at 72.68 against US dollar.

8. 45 AM: Closing on Monday

Equity markets closed at record highs, with Sensex crossing the 52,000 mark for the very first time on Monday, tracking positive cues from global equities. Riding the gains in bank and realty stocks today, Sensex climbed 609 points to end at 52,154 and Nifty gained 151 points to 15,314.

IndusInd Bank, ICICI Bank, HDFC Bank, Kotak Bank and Bharti Airtel were among the top gainers today. Indian Oil, NTPC, ONGC, Tata Steel, Grasim Industries, Coal India and M&M were top losers on Sensex

Sensex closes above 52,000 for first time, Nifty at record high: Five factors behind the rally