Opening Bell News

Opening Bell

Date Heading Details
26-Feb-2021   08:49 Hrs IST Markets likely to make gap-down opening on Friday <p align="justify">Indian markets ended higher but off day's high on Thursday led by energy and metal stocks. Today, the markets are likely to make gap-down start of session following sell-off in the global peers. All eyes will be on the Q3 gross domestic product (GDP) data, to be released later in the day, which will shed light on whether the economy continued to be in recession in the third quarter of FY21 or it ended with the second quarter only. However, some respite may come later in the day as India Inc said privatisation except in strategic sectors would unleash exciting opportunities, boost investments in infrastructure and create jobs. Some support may come as Union Finance Minister Nirmala Sitharaman said this year's budget has negated the notion that welfare state is a socialist prerogative, and added that it has given a directional change to the Indian economy, wherein the government trusts wealth creators and citizens. Meanwhile,&nbsp;a nationwide bandh call has been given by the Confederation of All India Traders (CAIT) to protest against rising fuel prices, the E-Way Bill, and the complex structure of the Goods and Services Tax (GST). Marketplaces across India are likely to remain shut on Friday as over 40,000 trader associations have responded to the cause. Metal stocks will be in focus as industry body Indian Steel Association (ISA) said there is an urgent need to increase and improve the logistics arrangement for the domestic steel sector. There will be some reaction in auto component industry stocks as industry body Automotive Component Manufacturers Association of India (ACMA) said the domestic auto component industry is expected to log in double-digit growth next fiscal, as demand picks up month on month after a prolonged period of downturn. There will be some buzz in pharma stocks as Union Minister for Chemicals &amp; Fertilisers D V Sadananda Gowda said the government is continuously working to reduce regulatory compliance burden on the pharma industry in a bid to improve ease of doing business in the country. Besides, RailTel's shares will make their stock market debut today. The Rs 819 crore initial public offering (IPO) from the Ministry of Railways, its second public issue of 2021, had earlier this month garnered a subscription tally of 42.39 times.</p><p align="justify">The US markets closed in red on Thursday as technology-related stocks remained under pressure following a rise in US bond yields. Asian markets are trading lower on Friday tracking fall on Wall Street overnight.</p><p align="justify">Back home, Indian equity benchmarks ended Thursday's volatile session by over half percent higher each, with energy, oil and gas and metal stocks accounting for most of the gains, amid strong cues from global peers. The benchmarks staged a gap up opening, as traders took encouragement with a private report that India's economy is likely to have returned to growth in the December quarter due to the easing of restrictions on movement after the first wave of the coronavirus epidemic peaked. Some support also came in as the Reserve Bank of India (RBI) announced yet another round of Open Market Operations (OMO) or simultaneous purchase and sale of gilts on March 4. Under this, the RBI will buy Rs 15,000 crore worth bonds in four different papers and sell Rs 150,000 crore worth bonds in two different securities. However, the benchmarks came off intraday highs due to monthly expiry of February futures and option contracts. Some concern also came with Reserve Bank of India (RBI) Governor Shaktikanta Das' statement that the central bank is concerned over the impact of cryptocurrencies may have on the financial stability in the economy and has conveyed the same to the government. He said ‘we have certain major concerns about cryptocurrencies. But key indices managed to end session with over half percent gains each, as Moody's projected India's growth for the next financial year beginning April 1, to 13.7 percent, from 10.8 percent estimated earlier, on the back of normalisation of activity and growing confidence in the market with the rollout of COVID-19 vaccine. Some optimism also remained among traders with S&amp;P Global Ratings' statement that an improvement in macroeconomic conditions is likely to alleviate stress for India's banking sector. It said the Indian government's strong efforts to shield banks from the COVID-19 pandemic have largely been successful, but a hit from the pandemic is inevitable. Traders also took a note of private report stated that the number of ultra-high networth individuals (UHNWIs), with wealth of $30 million or more, is expected to rise 63 percent over the next five years to 11,198 in India, the second fastest growth in the world. Finally, the BSE Sensex rose 257.62 points or 0.51% to 51,039.31, while the CNX Nifty was up by 115.35 points or 0.77% to 15,097.35.<br></p>
25-Feb-2021   08:39 Hrs IST Markets likely to get gap-up start on firm global cues <p align="justify">Indian markets ended 2 percent higher on Wednesday, tracking strong buying in financial stocks with the Nifty Bank surging over 1,400 points, after trading hours were extended till 5:00 PM following a technical glitch at NSE. Today, the markets are likely to make gap-up start following a rally in global markets. There may be some volatility in the markets ahead of the February F&amp;O expiry. Traders will be taking encouragement with a private report that India's economy is likely to have returned to growth in the December quarter due to the easing of restrictions on movement after the first wave of the coronavirus epidemic peaked. Some support will come as the Reserve Bank of India (RBI) announced yet another round of Open Market Operations (OMO) or simultaneous purchase and sale of gilts on March 4. Under this, the RBI will buy Rs 15,000 crore worth bonds in four different papers and sell Rs 150,000 crore worth bonds in two different securities. However, there may be some cautiousness as India's count of active cases once again topped the 150,000 mark. On Wednesday, the country registered 17,106 fresh Covid-19 cases, taking its the caseload tally to 11,046,432. India continues to be second-most-affected globally, and ranks 14th among worst-hit nations by active cases. Banking stocks will be in focus as bank unions under the umbrella body All India Bank Employees' Association (AIBEA) opposed the government's decision to allow all private sector lenders in government-related business, saying it was unfair and to the disadvantage of public sector banks (PSBs). The finance ministry, in a statement, said all private sector banks can now participate in government-related businesses like collection of taxes, pension payments and small savings schemes. There will be some reaction in PSU stocks as Prime Minister Narendra Modi made his strongest pitch for privatisation of non-strategic public sector units (PSUs), saying the government has no business to be in business and sustaining loss-making units on taxpayers' money drains resources that could otherwise have been spent on public welfare schemes. Aviation stocks will be in limelight as global airline industry body IATA warned that the outlook for airlines had weakened since its December forecasts, and due to tightening travel restrictions it now expected the sector to still be bleeding cash by the fourth quarter of this year. There will be some buzz in pharma and IT hardware stocks as extending the Production-Linked Incentive (PLI) scheme to more sectors, the Union Cabinet approved Rs 15,000 crore for incentives to domestic manufacturing of pharmaceuticals and Rs 7,350 crore for production of laptops, tablets, all-in-one personal computers and servers in India. Meanwhile, the 100-crore Nureca initial public offering (IPO), which received nearly 40 times subscription, is set to make its share market debut on Thursday. During February 15-17, 2021. The home healthcare and wellness products seller issue was sold in the price band of Rs 396-400 apiece.</p><p align="justify">The US markets ended higher on Wednesday shaking off early weakness after Federal Reserve Chair Jerome Powell's comments calmed inflation worries. Asian markets are trading in green on Thursday after US Federal Reserve Chair Jerome Powell reaffirmed interest rates would stay low, calming market fears that higher inflation might prompt the central bank to tighten the monetary spigot.</p><p align="justify">Back home, Indian equity benchmarks ended significantly higher on Wednesday after trading hours were extended following a technical glitch at NSE. Markets made optimistic start, as traders took encouragement with a private report that India's GDP may turn positive at 1.3 percent in the third quarter of 2020-21, having witnessed contraction in the previous two quarters due to the coronavirus pandemic, as the number of cases is falling and public spending has started rising. Some support also came in as Agriculture Minister Narendra Singh Tomar said that the government's decision to increase the agriculture credit target to Rs 16.5 lakh crore for the next fiscal will help in easing the liquidity crunch of farmers.&nbsp; However, trading has been halted on NSE due to a technical glitch as the live price quotes of spot Nifty and Bank Nifty indexes have stopped updating. Post resumption of trade, benchmark indices shot up specularly in an unprecedented extended session, as private banks edged higher after Centre lifted the embargo on grant of government business to private banks, enabling banks to participate in all developmental activities. Finance Minister Nirmala Sitharaman said that Private Banks can now be equal partners in development of the Indian economy, furthering the government's social sector initiatives and enhancing customer convenience. Traders also took some support with Union Minister Sadananda Gowda's statement that the chemicals and petrochemicals sector has huge potential and can contribute significantly towards achieving the government's target of $5 trillion economy. He also said India has potential to become a global petrochemical hub &amp; factors like high GDP growth, presence of skilled manpower, big domestic market makes India an attractive platform for investment in the sector. Traders took a note of Niti Aayog CEO Amitabh Kant's statement that India now needs to get into cutting edge technology in order to boost its exports which will benefit sectors such as telecom, automobiles, battery storage devices, and solar energy, among others. Finally, the BSE Sensex rose 1030.28 points or 2.07% to 50,781.69, while the CNX Nifty was up by 274.20 points or 1.86% to 14,982.00.<br></p>
24-Feb-2021   08:37 Hrs IST Markets to open in green on Wednesday
23-Feb-2021   08:34 Hrs IST Markets likely to make positive start on Tuesday
22-Feb-2021   08:39 Hrs IST Markets likely to make flat-to-positive start on Monday
19-Feb-2021   08:32 Hrs IST Markets likely to get negative start amid weak global cues
18-Feb-2021   08:33 Hrs IST Markets likely to open in green on Thursday
17-Feb-2021   08:35 Hrs IST Markets likely to make pessimistic start on Wednesday
16-Feb-2021   08:33 Hrs IST Benchmarks likely to make flat-to-positive start on Tuesday
15-Feb-2021   08:34 Hrs IST Benchmarks likely to make gap-up opening of new week