Sensex rallies 749 pts on value buying

March 01,2021

Domestic benchmark indices closed with robust gains on Monday. The Nifty ended near the 14,800 mark. Value buying emerged after a heavy selling in the previous trading session.

As per the provisional closing data, the barometer index, the S&P BSE Sensex, surged 749.85 points or 1.53% at 49,849.84. The Nifty 50 index advanced 232.4 points or 1.6% at 14,761.35.

The broader market was trading firm. The S&P BSE Mid-Cap index rose 1.46% while the S&P BSE Small-Cap index gained 1.61%.

There were more buyers than sellers. On the BSE, 1,957 shares rose and 1,111 shares fell. A total of 199 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 8,295.17 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,499.70 crore in the Indian equity market on 26 February 2021, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 114,078,673 with 25,30,723 deaths. India reported 1,68,627 active cases of COVID-19 infection and 157157 deaths while 1,07,86,457 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) stood at 57.5 in February 2021, highlighting a strong improvement in operating conditions that was broadly similar to that recorded in January (57.7). The headline figure remained above its long-run average of 53.6.

India's economy returned to growth in its fiscal third quarter after a recession earlier in 2020. Gross domestic product grew 0.4% in October-December compared with the same period a year earlier, data released by the National Statistics Office on Friday showed. That compared with revised contractions of 7.3% in July-September and 24.4% in April-June.

The output of eight core infrastructure sectors grew marginally by 0.1% in January, mainly due to growth in the production of fertiliser, steel and electricity. The core sectors had expanded by 2.2% in January 2020, according to the provisional data released by the Commerce and Industry Ministry on Friday.

The Central government's fiscal deficit soared to Rs 12.34 lakh crore or 66.8% of the revised Budget estimates at the end of January 2021 of the current fiscal. The fiscal deficit at the end of January 2021 in the previous financial year was 128.5% of the Revised Estimates (RE).

Meanwhile, the country's foreign exchange reserves increased by $169 million to $583.865 billion in the week ended 19 February 2021, as per the data released by RBI. In the previous week ended 12 February 2021, the reserves had declined by $249 million to $583.697 billion. It had touched a record high of $590.185 billion in the week ended 29 January 2021 this year.

Feb Auto Sales:

The Nifty Auto index surged 2.3% to 10,405.32 after auto makers reported decent sales in February 2021.

Bajaj Auto added 0.54% after the company's total auto sales rose 6% to 375,017 units in February 2021 over February 2020. Sequentially, the company's total sales have decreased 11.8% in February 2021 from 425,199 units sold in January 2021. While the total domestic sales declined by 2% to 164,811 units, total exports increased by 13% to 210,206 units in February 2021 over February 2020. Bajaj Auto's total two-wheeler sales improved 7% to 332,563 units during the month as compared to 310,222 units in sold in the same period last year.

Eicher Motors added 2.30% to Rs 2554.95 after VE Commercial Vehicles, the company's unlisted subsidiary, recorded 19% growth in total auto sales to 5457 units in February 2021 from 4586 February 2020. While total domestic sales increased by 24.5% to 4825 units, total exports declined by 9.6% to 510 units in February 2021 over February 2020.

Maruti Suzuki India rose 2.13% after the car major's total sales jumped 11.8% to 1,64,469 units in February 2021 over February 2020. Sequentially, the company's total auto sales rose 2.31% in February 2021 as against 1,60,752 units sold in January 2021. Total domestic sales (PV+LCV) jumped 9.9% to 1,47,483 units while total export sales rose 11.9% to 11,486 units in February 2021 over February 2020.

Escorts lost 1.8%. The company's Agri Machinery Segment (EAM) in February 2021 sold 11,230 tractors, its highest ever February sales, and registered a growth of 30.6% over February 2020. Sequentially, the company's tractor sales have increased by 24.5% from 9,021 units sold in January 2021.

Mahindra & Mahindra (M&M) added 1.65% after the company said its total tractor sales (domestic + exports) during February 2021 were at 28,146 units, up by 25% from 22,561 units for the same month last year. While total domestic tractor sales increased by 24% to 27,170 units, total tractor exports increased by 43% to 976 units in February 2021 over February 2020. The company's total auto sales decline by 11.4% to 28,777 vehicles in February 2021 from 32,476 in February 2020. Sequentially, the company's auto sales have decreased 26.5% in February 2021 from 39,149 units sold in January 2021.

TVS Motor Company jumped 3.35% after the company's total auto sales grew by 18% registering 297,747 units in February 2021 as against 253,261 units in the month of February 2020. While total two-wheeler sales grew by 21% recording 284,581 units, three-wheeler sales declined by 24% to 13,166 units in February 2021 over February 2020.

Ashok Leyland rose 0.78%. The commercial vehicles maker's total sales jumped 19% to 13,703 units in February 2021 as against 11,475 units sold in February 2020. Sequentially, the company's total auto sales advanced 4.4% last month from 13,126 units sold in January 2021. Ashok Leyland's domestic sales stood at 12,776 units in February 2021 as against 10,612 units in February 2020, registering a 20% increase year-on-year (Y-o-Y).

SML Isuzu gained 1.78%. The automobile company's total sales dropped 13.5% to 760 units in February 2021 as against 879 units in February 2020. Sequentially, the company's auto sales soared 42.05% in February 2021 as against 535 units sold in January 2021.

Global Markets:

Shares in Europe and Asia advanced on Monday amid easing US Treasury yields. Stocks had been under pressure over the last few weeks as rising yields made equities look less attractive to investors.

A private survey released Monday showed China's manufacturing activity in February growing at a slower pace. The Caixin/Markit manufacturing Purchasing Managers' Index (PMI) came in at 50.9, a decline from January's reading of 51.5.

China's official manufacturing Purchasing Managers' Index (PMI) for February came in at 50.6 over the weekend, according to data released by the country's National Bureau of Statistics. That was lower than January's reading of 51.3 but still above the 50 level that separates expansion from contraction.

US stocks ended on a mixed note on Friday. The Dow Jones Industrial Average tumbled 469.64 points, or 1.5%, to finish at 30,932.37, after touching a session low at 30,911.37 as Wall Street struggled to shake off fears of rapidly rising rates.

The S&P 500 lost 18.19 points, 0.5%, to close at 3,811.15 as energy and financial stocks pulled back. The Nasdaq Composite Index added 72.91 points, or 0.6%, to 13,192.34 as Big Tech names rebounded after a large sell-off in the previous session amid surging bond yields. Facebook, Microsoft and Amazon each rose more than 1%.

The House passed a $1.9 trillion Covid relief bill, the American Rescue Plan Act of 2021, early Saturday. The Senate will now consider the legislation.

Trade data showed that the U.S. trade deficit in goods widened to $83.7 billion in January from a revised $83.2 billion in the prior month, the Commerce Department said Friday. Imports of goods, such as consumer electronics, rose 1.1% to $218.9 billion in January. Goods imports were up 8.2% compared with a year earlier. Exports rose 1.4% to $135.2 billion, but were down 0.7% compared with one year ago.

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