Stock Market Live: Sensex jumps 400 points, Nifty around 15,250 led by banks, IT stocks

Keshav Lahoti, Associate Equity Analyst, Angel Broking

Foreign institutional investor are continuously pumping money in the Indian market to take it to new lifetime high. Indian market is rallying due to faster economic recovery, government increased funding to infrastructure sector in the budget, better than expected result published by most of the companies during the ongoing earning outcome and increasing participation by FII. Market fundamentals and sentiments are strong to take the market to new highs. Continuous FII Inflow is very important for the rally in the market.

India Overseas Bank Q3FY21 | The bank reported a net profit of Rs 213 crore as compared to a loss of Rs 6,075 crore, YoY. Net interest income rose 19 percent to Rs 1,522 crore from Rs 1,278 crore, YoY. Gross NPA comes in at 12.2 percent versus 13 percent and net NPA at 3.1 percent versus 4.3 percent, QoQ. Without SC Dispensation, Gross NPA is at 13.1 percent net NPA at 4 percent.

Central Bank of India Q3FY21 | The bank’s net profit rises 6.5 percent to Rs 165.4 crore from Rs 155.3 crore, while Net Interest Income (NII) increased 10.2 percent to Rs 2,228.1 crore from Rs 2,022 crore, YoY. The bank reported Gross NPA at 16.30 percent versus 17.36 percent and net NPA at 4.73 percent versus 5.60 percent, QoQ. Gross NPA without SC dispensation were at 18.19 percent and Net NPA at 6.58 percent.

Firstsource Solutions Q3FY21 | The company’s consolidated net profit rose 15 percent to Rs 121 crore from Rs 105.3 crore, QoQ, while revenue increased 15 percent to Rs 1,365 crore from Rs 1,187 crore, QoQ.

Balaji Amines’ D Ram Reddy says there is a good demand shift to Indian companies from Chinese

Balaji Amines reported 64 percent revenue growth, EBITDA has more than doubled and the bottomline has expanded 163 percent. D Ram Reddy, MD of Balaji Amines discussed the third-quarter numbers. There is a short supply of a pharma product, dimethylformamide (dmf), in the world market, he said.

“Even though there is no antidumping, the product has become short supply from China and other countries. We are in a position to operate this product for more than 40-45 percent. We expect this to continue as the consumption growth for this product has gone to more than 70,000 tonne in the country. We are the only manufacturer having only 30,000 tonne capacity.” Watch here.

IRB Infrastructure Developers | The company’s board approved the proposal of increasing the fundraising limit for an additional amount of Rs 1,000 crore, over and above the earlier limit of Rs 4,500 crore.

IRCON International | The company’s board will consider interim dividend and bonus issue on February 15.

JBM Auto Q3FY21 | The company’s net profit rose 33.5 percent to Rs 22 crore from Rs 16.4 crore, while revenue increased 26.5 percent to Rs 590.7 crore from Rs 467 crore, YoY. EBITDA jumped 17.4 percent to Rs 66.6 crore from Rs 56.7 crore, while EBITDA margin narrowed by 90 bps to 11.3 percent from 12.1 percent, YoY.

Bill on cryptocurrencies to be sent to cabinet soon, says MoS Fin Anurag Thakur

MoS Finance Anurag Thakur on Tuesday said that the bill on cryptocurrencies is being finalized and will be sent to Cabinet soon. “Cryptocurrencies are not currencies, or securities or commodities. The current laws are inadequate to deal with them. Regulators Reserve Bank of India (RBI) and SEBI India do not have the framework to regulate cryptocurrencies,” he said in the upper house of Parliament.

“Inter-ministerial committee has given report. Meeting of Empowered Technology Group & Committee of Secretaries has taken place,” he added. Read here.

Vehicle registrations back in the negative zone, fall 9.66% in Jan

After a month of growth in retail sales, vehicle registrations fell once again in January, declining 9.66% compared to the same time last year. Registrations declined for all segments of vehicles, except tractors. For two-wheelers, registrations were lower by 8.78%, 51.31% for thee-wheelers, 25% for commercial vehicles and 4.46% for passenger vehicles for the month of January, according to data released by the Federation of Automobile Dealers’ Association, or FADA.

Registrations for tractors, however, continued to grow at 11.14% in January. Read more here.

Bitcoin’s value could touch $1,00,000-mark by year-end, says Galaxy Digital founder

Bitcoin’s value could more than double by the end of this year to $ 1,00,000, cryptocurrency investment firm Galaxy Digital’s founder Michael Novogratz told BloombergQuint. As per Novogratz, this growth will be due to the fact that more companies are set to allow the use of Bitcoin for purchases, the report said. In an interview with BQ, coming on the back of Tesla’s decision to allow customers in the future to buy its electric cars with bitcoins, the long-time crypto enthusiast and investor said that it is these decisions that will have a big impact on the market. More here

Positive on Sun TV, SBI; Balkrishna top pick in tyre industry, says Dipan Mehta

Dipan Mehta, Director at Elixir Equities, on Tuesday said that he continues to remain positive on Sun TV after the December quarter earnings. Mehta has been very positive on Sun TV for many quarters. “Very positive on Sun TV. We and our clients are invested in it,” he said in an interview with CNBC-TV18. Balkrishna Industries is Mehta’s top pick in the tyre industry. State Bank of India’s (SBI) management commentary has been very positive, he said. “I think there is a shift of money away from private sector bank to public sector bank and the top pick remains SBI. So very positive on SBI as well at this point of time,” he said. For more watch the video.

Oil climbs to 13-month highs on output cuts, demand recovery hopes

Oil prices edged up to their highest in 13 months on Tuesday as supply cuts by major producers and optimism over fuel demand recovery support energy markets. Brent crude futures for April gained 48 cents, or 0.8 percent, to USD 61.04 a barrel by 0443 GMT. US West Texas Intermediate crude (WTI) for March was at USD 58.42 a barrel, up 45 cents, or 0.8 percent. Both Brent and WTI are at their highest since January 2020. Front-month prices for both contracts are up for the seventh session on Tuesday, the longest win streak since January 2019. Additional supply reductions by top exporter Saudi Arabia in February and March, on top of cuts by producers in the Organization of the Petroleum Exporting Countries and their allies, are tightening supplies and balancing global markets.

BPCL shares rally 4% as Q3 earnings beat estimates

The share price of Bharat Petroleum Corporation Ltd (BPCL) gained over 4 percent after the company reported strong earnings for the third quarter of fiscal 2021, beating Street estimates. The state-run oil marketer reported a 23.6 percent rise in the December quarter net profit at Rs 2,778 crore from Rs 2,248 crore in the September quarter. The company’s revenue increased 33.1 percent to Rs 66,731.5 crore from Rs 50,146.4 crore, QoQ. The earnings were above CNBC-TV18’s poll estimates as analysts had expected a net profit of Rs 2,279 crore, while revenue was seen at Rs 65,086 crore.

Market Watch: Rahul Mohindar of viratechindia.com

We like ITC in the heavyweights. We are looking at a target of Rs 242 on ITC. I would buy it with a stop loss at Rs 226.

I would use every decline to buy Tech Mahindra. Rs 973 is good support; so keep a stop loss reaching that level. Rs 1,025 is the target on Tech Mahindra.

Jindal Steel has broken out; right from the morning we have been identifying this. So, 327 is our first target on the stock and thereafter Rs 335 is also likely. So, buy on Jindal Steel. I had initial stop loss of Rs 298 on this.

Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking

Traders are advised to continue with a positive approach and look for stock-specific opportunities. As far as levels are concerned, the 20 EMA on the hourly chart at 14,970 is the support and till this is intact, one should look for buying opportunities on dips. On the flipside, 15,200 followed by 15,300 are the important levels to watch out for.

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments

The markets have continued their northward trajectory this morning and we are very close to the 15,200 targets. While a pause at these levels cannot be ruled out, the overall trend for the Nifty remains positive and we should target 15,500 as the next level of resistance. A buy on dips is a prudent strategy to adopt in the current market scenario.

RIL, Future Group shares rally after Delhi HC lifts ‘status quo’ order on deal

Shares of Reliance Industries and Kishore Biyani-led Future Group companies rallied in early morning trade on Tuesday after the Delhi High Court stayed the single judge bench order directing a ‘status quo’ on Future Retail-RIL deal till the next hearing. The stock price of Reliance Industries rose as much as 1.9 percent, while Future Group stocks rallied around 5-10 percent. The division bench of the Delhi High Court said that Amazon had no business seeking a status quo because they are not interested in this deal. It also observed that the statutory authorities such as the Securities and Exchanges Board of India (Sebi) and Competition Committee of India (CCI) had been asked to maintain the status quo when they themselves were not even present before the Delhi High Court.

Bitcoin prices soar above $47,500 after Tesla investment

Bitcoin’s price jumped to an all-time high on Monday after Tesla said it has invested around $1.5 billion in the digital coin. The news sent Bitcoin soaring as high as $47,513. The electric carmaker revealed that it expected accepting payment for its cars and other products with Bitcoins in the near future. Tesla said in a filing the decision was part of its broad investment policy as a company and was aimed at diversifying and maximizing its returns on cash. It said it had invested an aggregate $1.5 billion in bitcoin under the changed policy and could “acquire and hold digital assets from time to time or long-term”.