Article

Market Performance in February 2021

07 Apr 2021 Nikita Bhoota

Market Update:

In February 2021, key global markets lost upwards momentum and were under pressure primarily owing to spike in 10-year US Treasury Note on higher inflationary expectations

However, Indian markets managed to gain on the back of optimism fueled by an aggressive and growth oriented national budget

Nifty 50 rose 2.0%, while BSE Sensex went up 1.6% on MoM basis in February 2021

Mid and small cap indexes jumped and outperformed large cap indexes as the ongoing rally entered into broader markets

FIIs bought ₹27,919cr (vs. ₹14,512cr bought MoM) in Indian equities, while DIIs sold ₹14,463cr worth of equities (vs. ₹12,980cr sold MoM) during the month.

Equity Market:

The earnings momentum accelerated further in 3QFY21, aided by pickup in sales growth. Aggregate sales growth of domestically-oriented companies turned positive after five consecutive quarters of contraction, and pointed to a recovering domestic demand.

Fixed Income Market:

In February 2021, India’s 10-year bond yields rose 28bps to 6.23% on announcement of aggressive Govt. borrowings and RBI’s intent of rationalization of excessive liquidity in the economy

RBI in its latest monetary policy review maintained repo rate at 4.0% (Reverse Repo Rate: 3.35%) and reiterated to continue to support economic recovery by ensuring ample liquidity and in the system.

Indian economy grew 0.4% in Q3FY21 on the back of rebound in financial services, manufacturing and steady agricultural growth. Thus the Indian economy reversed technical recession for the two previous quarter due to Covid pandemic

As the January retail inflation cooled off further to 4.1% and was within the RBI’s target range (4%+-2%), the central bank is expected to continue to remain accommodative to support growth.

Stock Performance:

Below are the top 10 gainers and losers on Nifty 50 in February 2021.

Company Name

01-02-2021

26-02-2021

Gain/ Loss

Hindalco Industries Ltd.

241.15

340.25

41.1%

State Bank Of India

310.7

390.15

25.6%

Adani Ports and Special Economic Zone Ltd.

542.75

675.9

24.5%

Oil & Natural Gas Corporation Ltd.

90.85

111

22.2%

Coal India Ltd.

129

152.2

18.0%

NTPC Ltd.

92

107.3

16.6%

Tata Motors Ltd.

279.6

322.95

15.5%

Bharat Petroleum Corporation Ltd.

393

449.85

14.5%

Power Grid Corporation Of India Ltd.

188.9

214.3

13.4%

Tata Steel Ltd.

636.1

715.15

12.4%

Source: Ace Equity

Hindalco Industries Ltd.
Hindalco Industries gained 41.1% in February 2021 due to strong quarterly results. The company reported 76.2% YoY jump in December quarter standalone net profit to Rs 340 crore. Standalone revenue stood at Rs 11,351 crore, up 11% YoY.

State Bank of India (SBI)
State Bank of India jumped 25.6% from February 01, 2021 to February 26, 2021 as Q3 FY21 results beats street estimates.

Adani Ports and Special Economic Zone
Adani Ports and Special Economic Zone rose 24.5% in the same period as the company acquired Dighi Port for Rs 705 crore. 

Oil & Natural Gas Corporation Ltd. (ONGC)
ONGC rallied 22.2% as the company said that it hopes to produce 15 million cubic metres of gas a day (mmscmd) in 2024 from its block in the Krishna Godavari (KG) basin.  

Coal India Ltd.
Coal India jumped 18% from February 01, 2021 to February 26, 2021 as it has signed a major procurement pact with Belaz for the purchase of 96 dumpers.

Power Grid Corporation of India Ltd.
Power Grid stock rallied 13.4% in February 2021 as the company bagged a new order for establishing a transmission line in Rajasthan.

NTPC Ltd.
NTPC gained 16.6% in February 2021 due to non-core asset sale in PSUs announced by the Finance Minister during her budget speech. Apart from this, the company has announced its plans in regard to interest cost restructuring and if that is implemented, it will bring down their debt on the balance sheet.


Losers:

Company Name

01-02-2021

26-02-2021

Gain/ Loss

Eicher Motors Ltd.

2842.85

2498.6

-12.1%

Tata Consultancy Services Ltd.

3139.35

2894.3

-7.8%

Bajaj Auto Ltd.

4114.7

3798.7

-7.7%

Maruti Suzuki India Ltd.

7399.8

6866.15

-7.2%

Asian Paints Ltd.

2447.8

2277.2

-7.0%

Titan Company Ltd.

1501.55

1406.9

-6.3%

Nestle India Ltd.

17087.7

16101.6

-5.8%

ITC Ltd.

215.95

203.85

-5.6%

Hindustan Unilever Ltd.

2248.6

2132.05

-5.2%

Britannia Industries Ltd.

3520.75

3363.75

-4.5%

Source: Ace Equity

Eicher Motors Ltd.
Eicher shares tanked 12.1% from February 01, 2021 to February 26, 2021 as research firms downgraded the stock citing expensive valuations.

Asian Paints Ltd.
Asian Paints fell 7% in the same period. It may be due Grasim entering into the paint business.

Titan Company Ltd.
Titan company shares tanked 6.3% in February 2021 as the company reported weak quarterly numbers.

Nestle India Ltd.
Nestle India plummeted 5.8% from February 01, 2021 to February 26, 2021 as the Q3 FY21 results did not meet Street estimates.

ITC Ltd.
ITC stock fell 5.6% in the same period. It may be due to weak quarterly performance.

Disclaimer: The above report is compiled from information available on the public platforms. These are not buy or sell recommendations.

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Market Performance in February 2021

07 Apr 2021 Nikita Bhoota

Market Update:

In February 2021, key global markets lost upwards momentum and were under pressure primarily owing to spike in 10-year US Treasury Note on higher inflationary expectations

However, Indian markets managed to gain on the back of optimism fueled by an aggressive and growth oriented national budget

Nifty 50 rose 2.0%, while BSE Sensex went up 1.6% on MoM basis in February 2021

Mid and small cap indexes jumped and outperformed large cap indexes as the ongoing rally entered into broader markets

FIIs bought ₹27,919cr (vs. ₹14,512cr bought MoM) in Indian equities, while DIIs sold ₹14,463cr worth of equities (vs. ₹12,980cr sold MoM) during the month.

Equity Market:

The earnings momentum accelerated further in 3QFY21, aided by pickup in sales growth. Aggregate sales growth of domestically-oriented companies turned positive after five consecutive quarters of contraction, and pointed to a recovering domestic demand.

Fixed Income Market:

In February 2021, India’s 10-year bond yields rose 28bps to 6.23% on announcement of aggressive Govt. borrowings and RBI’s intent of rationalization of excessive liquidity in the economy

RBI in its latest monetary policy review maintained repo rate at 4.0% (Reverse Repo Rate: 3.35%) and reiterated to continue to support economic recovery by ensuring ample liquidity and in the system.

Indian economy grew 0.4% in Q3FY21 on the back of rebound in financial services, manufacturing and steady agricultural growth. Thus the Indian economy reversed technical recession for the two previous quarter due to Covid pandemic

As the January retail inflation cooled off further to 4.1% and was within the RBI’s target range (4%+-2%), the central bank is expected to continue to remain accommodative to support growth.

Stock Performance:

Below are the top 10 gainers and losers on Nifty 50 in February 2021.

Company Name

01-02-2021

26-02-2021

Gain/ Loss

Hindalco Industries Ltd.

241.15

340.25

41.1%

State Bank Of India

310.7

390.15

25.6%

Adani Ports and Special Economic Zone Ltd.

542.75

675.9

24.5%

Oil & Natural Gas Corporation Ltd.

90.85

111

22.2%

Coal India Ltd.

129

152.2

18.0%

NTPC Ltd.

92

107.3

16.6%

Tata Motors Ltd.

279.6

322.95

15.5%

Bharat Petroleum Corporation Ltd.

393

449.85

14.5%

Power Grid Corporation Of India Ltd.

188.9

214.3

13.4%

Tata Steel Ltd.

636.1

715.15

12.4%

Source: Ace Equity

Hindalco Industries Ltd.
Hindalco Industries gained 41.1% in February 2021 due to strong quarterly results. The company reported 76.2% YoY jump in December quarter standalone net profit to Rs 340 crore. Standalone revenue stood at Rs 11,351 crore, up 11% YoY.

State Bank of India (SBI)
State Bank of India jumped 25.6% from February 01, 2021 to February 26, 2021 as Q3 FY21 results beats street estimates.

Adani Ports and Special Economic Zone
Adani Ports and Special Economic Zone rose 24.5% in the same period as the company acquired Dighi Port for Rs 705 crore. 

Oil & Natural Gas Corporation Ltd. (ONGC)
ONGC rallied 22.2% as the company said that it hopes to produce 15 million cubic metres of gas a day (mmscmd) in 2024 from its block in the Krishna Godavari (KG) basin.  

Coal India Ltd.
Coal India jumped 18% from February 01, 2021 to February 26, 2021 as it has signed a major procurement pact with Belaz for the purchase of 96 dumpers.

Power Grid Corporation of India Ltd.
Power Grid stock rallied 13.4% in February 2021 as the company bagged a new order for establishing a transmission line in Rajasthan.

NTPC Ltd.
NTPC gained 16.6% in February 2021 due to non-core asset sale in PSUs announced by the Finance Minister during her budget speech. Apart from this, the company has announced its plans in regard to interest cost restructuring and if that is implemented, it will bring down their debt on the balance sheet.


Losers:

Company Name

01-02-2021

26-02-2021

Gain/ Loss

Eicher Motors Ltd.

2842.85

2498.6

-12.1%

Tata Consultancy Services Ltd.

3139.35

2894.3

-7.8%

Bajaj Auto Ltd.

4114.7

3798.7

-7.7%

Maruti Suzuki India Ltd.

7399.8

6866.15

-7.2%

Asian Paints Ltd.

2447.8

2277.2

-7.0%

Titan Company Ltd.

1501.55

1406.9

-6.3%

Nestle India Ltd.

17087.7

16101.6

-5.8%

ITC Ltd.

215.95

203.85

-5.6%

Hindustan Unilever Ltd.

2248.6

2132.05

-5.2%

Britannia Industries Ltd.

3520.75

3363.75

-4.5%

Source: Ace Equity

Eicher Motors Ltd.
Eicher shares tanked 12.1% from February 01, 2021 to February 26, 2021 as research firms downgraded the stock citing expensive valuations.

Asian Paints Ltd.
Asian Paints fell 7% in the same period. It may be due Grasim entering into the paint business.

Titan Company Ltd.
Titan company shares tanked 6.3% in February 2021 as the company reported weak quarterly numbers.

Nestle India Ltd.
Nestle India plummeted 5.8% from February 01, 2021 to February 26, 2021 as the Q3 FY21 results did not meet Street estimates.

ITC Ltd.
ITC stock fell 5.6% in the same period. It may be due to weak quarterly performance.

Disclaimer: The above report is compiled from information available on the public platforms. These are not buy or sell recommendations.