SENSEX RECLAIMS 51,000, NIFTY ENDS NEAR 15,100 AS BANKS SHINE

Key equity benchmarks surged to end near the day`s high on Tuesday, led by firmness in private banks and financial shares. Metals and pharma shares corrected.

The barometer index, the S&P BSE Sensex, rose 584.41 points or 1.16% to 51,025.48. The Nifty 50 index added 142.20 points or 0.95% at 15,098.40.

Kotak Mahindra Bank (up 3.35%), HDFC Bank (up 2.85%), ICICI Bank (up 2.80%), HDFC (up 2.68%) and TCS (up 1.42%) were major market movers.

A pullback in US bond yields buoyed global equity markets. US Dow index futures were up 180 points, indicating a positive opening in the US stocks on Tuesday.

The broader market declined. The BSE Mid-Cap index fell 0.66% and the BSE Small-Cap index lost 0.41%.

The market breadth was negative. On the BSE, 1257 shares rose and 1736 shares fell. A total of 200 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 11,71,64,167 with 26,00,073 deaths. India reported 1,87,462 active cases of COVID-19 infection and 1,57,930 deaths while 1,08,99,394 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 6.206% compared with 6.223% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 72.93, compared with its close of 73.25 during the previous trading session.

MCX Gold futures for 5 April 2021 settlement rose 0.65% to Rs 45,507.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.31% to 92.03.

In the commodities market, Brent crude for May 2021 settlement rose 82 cents at $69.06 a barrel. The contract fell $1.12, or 1.61% to settle at $68.24 a barrel in the previous trading session.

Foreign Markets:

European shares rose across the board while most Asia shares edged higher on Tuesday. Stocks were bolstered by a retreat in bond yields, with the US 10-year Treasury yield pulling back from 1.6%.

Japan`s economy expanded at a slower-than-initially-reported pace. The economy grew an annualised 11.7% in October-December, weaker than the preliminary reading of 12.7% annualised growth to mark the second straight quarter of growth, Cabinet Office data showed Tuesday.

Meanwhile, People`s Bank of China Vice Governor Chen Yulu told the media that China`s money supply would grow only to match GDP growth and the country`s central bank did not see a need for major stimulus support in the next five years.

In US, technology-related shares sold off on Monday in a big downturn that pushed the Nasdaq into a correction and offset stocks that rose on hopes the $1.9 trillion COVID-19 relief bill will spur the U.S. economic recovery. The Dow hit a record intra-day high.

Investors will watch as the U.S. House of Representatives plans to pass a $1.9 trillion coronavirus relief bill to get fresh aid to Americans starting this month. That follows after the Senate passed the legislation over the weekend. President Joe Biden is expected to sign it into law before unemployment aid programs expire on March 14.

US Treasury Secretary Janet Yellen said on Monday the package would fuel a "very strong" U.S. recovery and she did not expect the economy to run too hot because of the increased spending.

Buzzing Indian Segment:

Shares of life insurers were in demand as their individual weighted received premium improved in February. SBI Life Insurance (up 5.19%), HDFC Life Insurance (up 2.18%) and ICICI Prudential Life Insurance (up 1.82%) advanced.

SBI Life posted a strong rebound (around 53% YoY) in individual weighted received premium in (WRP) February 2021 after showing muted trends for many months.

WRP of private life insurance companies rose 23% year-on-year in February compared with 7% in January, according to data released by the Insurance Regulatory Development Authority of India.

Stocks in Spotlight:

Bharat Petroleum Corporation (BPCL) tumbled 4.56% to Rs 445.70. The media reported that BPCL has sold its Treasury shares through block deal and has raised nearly Rs 7,000 crore.

BPCL in a regulatory filing on Monday said, "A sub-committee of the Board of Directors of BPCL has approved the sale of BPCL equity shares which are held by the BPCL Trust for Investment in shares through accelerated book-built offering of equity shares on the screen-based trading platform of the stock exchanges. The total number of equity shares being offered is upto 15,89,93,397 equity shares held by the above trust."

Praj Industries gained 2.63% after the company said it secured a breakthrough order from HPCL to set up compressed biogas plant in Uttar Pradesh.

Indoco Remedies added 3.16% after the drug company on Tuesday announced the launch of brinzolamide ophthalmic suspension, 1% in the US market. The suspension is used to treat high pressure inside the eye due to ocular hypertension and open-angle glaucoma. According to IQVIA data, the US market size of this product is $184 million as of December 2020.

Manappuram Finance fell 1.01%. The board of directors of the company will meet on Friday, 19 March 2021, to consider business plan and borrowing program including raising of funds through issuance of non-convertible debt securities either through a public issue or on private placement basis for FY 2021-22.

Aurionpro Solutions hit an upper circuit of 20% after the company announced signing a strategic partnership with Future-Tech, UK for data center design and consultancy projects in India & South Asia.

Lemon Tree Hotels slipped 1.41%. The hotel-chain company has signed a license agreement for an 80-room upcoming hotel at Biratnagar in Nepal under the brand `Lemon Tree Premier`.

JMC Projects (India) soared 9.50%. The company has signed an agreement with Fahi Dhiriulhun Corporation (FDC), a state-owned company of the Government of the Republic of the Maldives, for the design, finance and construction of 2,000 social housing units in Hulhumale Island of Maldives. The total value for this project is estimated to be around $137 million (about Rs 1,000 crore) and is planned to be financed via a loan from multilateral funding agency.

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