Bulls Poised after Budget Rally

Our Analysis

The market witnessed a slip in its momentum during a volatile day as losses in banking stocks weighed on the sentiment. Auto, realty and consumer stocks remained firm along with mid and smallcap indices outperforming. US markets remained positive, supported by upbeat quarterly earnings while the trend was followed by most of the global peers.

On the global front, Asian shares rested at record highs on Thursday as investors digested recent meaty gains, while bulls were sustained by the promise of endless free money after a benign reading on U.S. inflation and a dovish Federal Reserve outlook. Adding to the torpor was a lack of liquidity as markets in China, Japan, South Korea and Taiwan were all on holiday.

This Weeks Market Highlights:

Benchmark Indices:

1) On Monday, Sensex settled tad below the 51,350-mark, at 51,349 levels today, up 617 points or 1.22 percent. Nifty clinched the 15,100-mark on the closing basis and settled at 15,116 levels, up 191.5 points or 1.28 per cent.

2) On Tuesday, Sensex closing at 51,329 levels, down 20 points or 0.04 per cent. Nifty, on the other hand, managed to close above the 15,100-mark, at 15,109 levels, down 6.5 points or 0.04 per cent. The index hit an all-time-high of 15,257 during the day.

3) On Wednesday, Sensex index settled at 51,309 levels on the BSE, down 20 points or 0.04 per cent. Nifty closed 3 points, or 0.02 per cent, lower at 15,106.5 levels with 22 of the 50 constituents ending the day in the red.

4) On Thursday, Sensex advanced 222 points, or 0.43 per cent, to close at 51,531.5. Nifty, on the other hand, ended the day at 15,173-mark, up 67 points or 0.44 per cent.

5) On Friday, Sensex tumbled 543 points from's the day's high to hit an intra-day low of 51,261. At close, the index was at 51,544 levels, up 13 points or 0.02 per cent. The NSE's Nifty, meanwhile, ended at 15,163 level, down 10 points or 0.07 per cent.

Broader Index & Global Market:

- Indian benchmark equity indices closed higher after consolidating in the previous two sessions. Nifty opened lower but quickly rose in the first half hour of trade and later remained in a range. Volumes on the NSE were below recent average suggesting lower institutional interest at these levels. Among sectors, All sectors except Auto and PSU Bank ended in the positive. Metals, FMCG and IT indices rose the most.

- Asian shares rested at record highs as investors digested recent meaty gains, while bulls were sustained by the promise of endless free money after a benign reading on U.S. inflation and a dovish Federal Reserve outlook. Adding to the torpor was a lack of liquidity as markets in China, Japan, South Korea and Taiwan were all on holiday. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.1 per cent. Japan's Nikkei was shut after ending at a 30-year peak on Wednesday, while Australia's main index held near an 11-month top.

Movers & Shakers

Shares of Balaji Amines zoomed 20 per cent to hit a new high of Rs 1,514 on the BSE in intra-day trade after its profit more-than-doubled to Rs 70.16 crore in the October-December quarter on the back of healthy revenue. The stock eventually closed 14% higher at 1,443 apiece.

Shares of Balkrishna Industries slipped 11 per cent to Rs 1,640 on the BSE in Tuesday's intra-day trade as investors booked profit after the company announced a capex plan of up to Rs 1,900 crore, which will be funded by internal accruals and debt, if required. The stock ended 10% lower at Rs 1,654 per share.

Key Market Drivers

• Coronavirus vaccine
• Capex cycle
• Q3FY21

Event Watch

International:

• Coronavirus vaccine
• USA PMI
• Japan GDP growth rate
• UK PPI, inflation rate

Domestic:

• Coronavirus- vaccine
• Q3FY21
• India WPI
• India export import

Stocks To Watch

SAIL Ltd On Upside while, Reliance Industries Ltd on Downside.