Stock Market Live: Sensex edges higher, Nifty above 14,750; metals, auto stocks rise

Tata Consumer to be the fifth Tata group stock to be included in Nifty50; stock hits 52-week high

Tata Consumer Products will replace state-owned Gail India in the Nifty50 index becoming the fifth Tata Group company to be included in the benchmark. The firm will join peers including TCS, Tata Steel, Tata Motors and Titan. The change will take effect on March 31. The stock price of Tata Consumer jumped 4 percent to hit its 52-week high of Rs 652.85 per share post the announcement. Meanwhile, GAIL fell as much as 3 percent to its day’s low of Rs 142.90 per share. Post the inclusion, the weight of Tata Group stocks in the index will rise to 8.75 percent from 8.15 percent.

Rajendra Gandhi, MD, Stovekraft on margins

EBITDA is a function of operating lever because our costs are covered at a certain point, at a certain revenue. We are already at twice the revenue of where we cover all our cost. So, beyond that, 80% of our gross margins float will be done and that is where you are seeing healthy EBITDA numbers.

Market quote from Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

“Sharp spike in the volatility index VIX to 25.23 indicates a high level of uncertainty & expectations of high ups & downs, going forward. FIIs turning sellers (Rs 1569 cr yesterday) is negative. But DIIs have turned buyers, partly compensating for the FII selling. The global liquidity backdrop continues to be positive since the Fed has reaffirmed its accommodative monetary stance. Fed chief’s comment that 2% inflation in the US is far away, is positive for global markets. Investors can exploit the high volatility to make investments in segments where valuations are attractive & the risk-reward ratio is favourable. IT, presently under a bit of pressure due to rupee appreciation, offers buying opportunity. Valuations are relatively reasonable & earnings visibility is high”

Opening Bell: Sensex opens higher, Nifty nears 14,750; metals shine, RIL continues to gain

Indian indices opened high on Wednesday as heavyweight Reliance Industries continued gaining post O2C reorganisation, contributing the most to the benchmarks. Meanwhile, rise in metal, pharma, auto and banking sectors also lifted the sentiment. At 9:20 am, the Sensex was up 195 points at 49,946 while the Nifty rose 54 points to 14,761. Broader markets were also higher at opening with the midcap and smallcap indices up over half a percent each. On the Nifty50 index, Coal India, JSW Steel, Tata Steel, ONGC, and IOC were the top gainers while GAIl, UPL, TCS, Infosys and Kotak Bank led the losses. All sectors, barring Nifty IT were also in the green at opening. The metal index rose the most, up 2 percent while Nifty Bank and Nifty Auto added 0.6 percent each. Nifty Pharma was also up half a percent.

Oil slips after U.S. crude stocks rise amid deep freeze hit to refiners

Oil prices fell in early trade on Wednesday after industry data showed U.S. crude inventories unexpectedly rose last week as a deep freeze in the southern states curbed demand from refineries that were forced to shut. Crude stockpiles rose by 1 million barrels in the week to Feb. 19, the American Petroleum Institute (API) reported on Tuesday, against estimates for a draw of 5.2 million barrels in a Reuters poll. API data showed refinery crude runs fell by 2.2 million bpd. U.S. West Texas Intermediate (WTI) crude futures were down 55 cents or 0.9% at $61.12 a barrel at 0136 GMT, after slipping 3 cents on Tuesday.

Tesla shares in the red for 2021 as bitcoin selloff weighs

Shares in Tesla were set to plunge into the red for the year on Tuesday, hit by a broad selloff of high-flying technology stocks and the fall of bitcoin, in which the electric carmaker recently invested $1.5 billion. At 1121 GMT, Tesla was down over 6% in U.S. premarket deals after a 8.5% drop during the previous session. The firm led by Elon Musk has had a stellar ride since 2020, which it began at about $85 per share, before reaching the $900 mark on Jan. 25. Currently trading at about $673 in pre-market transactions, the stock has lost 25% from its peak, which is above the 20% level which technically defines a bear market. Bitcoin has also swung into a bear market, falling from a peak of $58,354 on Feb. 21 to a low of $45,000 earlier on Tuesday.

Promise of cheap money keeps stocks buoyant

Bond markets steadied, the U.S. dollar fell and stocks edged ahead on Wednesday after central banks from Washington to Wellington vowed to keep monetary policy loose for a long time, giving investors enough confidence to seek out riskier assets. MSCI’s broadest index of Asia-Pacific shares outside Japan, which has drifted 1.2% lower over the week as rising yields pressured valuations, rose 0.3% and S&P 500 futures rose 0.1%.

First up, here is quick catchup of what happened in the markets on Tuesday

Indian indices ended flat on Tuesday as gains in metal and energy stocks were capped by losses in banking and financial space like heavyweights Kotak Bank and HDFC twins. The Sensex ended 7 points higher at 49,751 while the Nifty rose 32 points to settle at 14,708. Broader markets, however, outperformed benchmarks with the midcap and smallcap indices up around 1 percent each. On the Nifty50 index, Tata Steel, Tata Motors, ONGC, Hindalco and UPL were the top gainers while Kotak Bank, Adani Ports, Maruti, Bajaj Auto and Divi’s Labs led the losses. Among sectors, the Nifty Metal rose the most, up 4 percent followed by Nifty Realty which added 2.9 percent. The Nifty Energy index also advanced 2 percent while Nifty Auto jumped 0.85 percent. However, Nifty Bank and Nifty Fin Services indices lose 0.4 percent and 0.5 percent, respectively.

Welcome to CNBC-TV18’s Market Live Blog

Good morning, readers! I am Pranati Deva from the market’s desk of CNBC-TV18. Welcome to our market blog, where we provide rolling live news coverage of the latest events in the stock market, business and economy. We will also get you instant reactions and guests from our stellar lineup of TV guests and in-house editors, researchers, and reporters. If you are an investor, here is wishing you a great trading day. Good luck!

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