Sensex skyrockets 1,147 points; Nifty nears 15,250

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Benchmark Indian indices rallied for the third consecutive day, led by firm global cues and sustained inflows by foreign institutional investors (FIIs). Sensex ended at 51,444, up 1,147 points or 2.28% against the previous close. Likewise, the Nifty50 index zoomed 326 points or 2.19% to close at 15,245.

Tata Steel ended with gains of over 5%. Bajaj Finserv, Reliance Industries, Bajaj Finance all ended with gains of 4.5% on the Sensex. Whereas M&M, Maruti & Bajaj Auto were the only laggards.

Sectorally,  Nifty Metal lead the pack with gains of 3.34% followed by Nifty Bank soaring 2.68%. Nifty IT index rose 1.86% while the Nifty Realty was up 1.50% and Nifty Pharma closed rising 1%. Only the Nifty Auto index ended with loses of 0.66%.

Economy:

IHS Markit India Services PMI rose to 55.3 in February 2021 from 52.8 in January 2021. The seasonally adjusted India Services Business Activity Index pointed to the sharpest rate of expansion in output in one year. Moreover, the latest reading extended the current growth sequence to five months. Survey participants linked the upturn to improved demand and more favourable market conditions. New work intakes expanded for the fifth straight month, and at the fastest pace over this sequence. According to monitored companies, marketing efforts and increases in new clients led to sales growth.

Meanwhile, the auction of telecom spectrum ended on Tuesday (2 March) with total bids of Rs 77,814.80 crore for the airwaves. Telecommunications Secretary Anshu Prakash said, incremental bids for Rs 668.20 crore were made on the second and concluding day of spectrum auction.

The bidding took place for spectrum in 800-Megahertz, 900-Megahertz, 1,800-Megahertz, 2,100 Megahertz and 2,300 Megahertz bands. The total quantity of spectrum for which right to use has been acquired in these bands is 855.60 Megahertz.

Three bidders, Bharti Airtel, Vodafone Idea and Reliance JioInfocomm participated in the auction. A total quantity of 2,308.80-Megahertz spectrum was put to auction, including spectrum that is expiring up to December this year.

Spectrum Usage Charges for the spectrum acquired in this auction will be payable at the rate of 3% of adjusted gross revenue of the licensee, excluding revenue from wireline services.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.243% as compared to its previous close of 6.236%.

In the foreign exchange market, the partially convertible rupee rose to 72.9525, compared with its previous closing of 73.3700.

MCX Gold futures for 5 April 2021 settlement fell 0.79% to Rs 45,187.

The US Dollar index (DXY), which tracks the greenback’s value against a basket of currencies, rose 0.03% to 90.817.

In the commodities market, Brent crude for May 2021 settlement rose 24 cents to $62.94 a barrel. The contract slipped 1.55% to settle at $62.7 a barrel in the previous session.