Benchmarks at day`s high; Nifty nears 16,400 level

The benchmark indices rallied further and hit fresh intraday high in mid-afternoon trade. The rally was wide spread. However, metal shares corrected after recent rally. The Nifty was trading near the 16,400 mark.

At 14:30 IST, the barometer index, the S&P BSE Sensex, jumped 1,332.39 points or 2.49% at 54,756.48. The Nifty 50 index advanced 364.90 points or 2.28% at 16,378.35.

In the broader market, the S&P BSE Mid-Cap index rose 2.46% while the S&P BSE Small-Cap index gained 2.21%.

The market breadth was strong. On the BSE, 2,673 shares rose and 636 shares fell. A total of 93 shares were unchanged.

Investors took position in equities ahead of the results of UP state election scheduled for Thursday. The elections to the five states - Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur - were held in seven phases between 10 February 2022 and 7 March 2022. The results will be announced on 10 March 2022.

As per exit polls conducted by the media, the Bharatiya Janata Party (BJP) is expected to sweep with a majority in Uttar Pradesh and Manipur, while the Aam Aadmi Party (AAP) will unseat the Congress in Punjab, as per the polls for the just-finished five assembly elections released on 7 March 2022. In Uttarakhand, the ruling BJP may emerge as the first party to retain power in the hill-state. The BJP is likely to retain power in Manipur. Goa is likely to witness a fractured mandate in the recently contested assembly elections.

LIC IPO:

State-owned insurance major Life Insurance Corporation of India (LIC) on Tuesday received capital market regulator Sebi`s go-ahead to raise funds through an initial share sale. The government will sell over 31 crore equity shares of LIC.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 6.877% as compared with 6.895% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 76.81, compared with its close of 77 during the previous trading session.

MCX Gold futures for 5 April 2022 settlement rose 0.60% to Rs 54,550.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.31% to 98.75.

In the commodities market, Brent crude for May 2022 settlement rose $2.28 at $130.26 a barrel. A spike in crude oil prices has raised concerns over the impact on inflation, currency and input cost for companies across sectors as India imports majority of its crude oil requirements. Higher crude oil prices could increase India`s expenditure and adversely affect the fiscal deficit.

Buzzing Index:

The Nifty Auto index rose 2.74% to 9,822. The index gained 3.60% in three trading sessions.

Ashok Leyland (up 7.45%), Mahindra & Mahindra (M&M) (up 4.88%), TVS Motor Company (up 4.25%), Balkrishna Industries (up 4.01%) and Tata Motors (up 3.54%) were the top gainers in the Auto segment.

Steel Strips Wheels rose 1.69%. The company said it has further reduced the long-term debt by Rs 25.73 crore. Steel Strips Wheels said it has made a total prepayment of Rs 61.27 crore till date. With this, the company`s long-term debt is reduced to Rs 441.72 crore. The company said it is working to further prepay the long-term loans within the current month. It is on course to achieve the targeted financial leverage of sub 2 times on total debt (long term/short term) basis.

Global Markets:

The Dow Jones futures were up 340 points, indicating a strong opening in the US stock market today.

European shares rose across the board while most Asian stocks declined on Wednesday as investors continue to monitor surging commodities prices and the ongoing war in Ukraine.

U.S. President Joe Biden announced that the U.S. will ban imports of Russian oil. The move risks exacerbating existing price surges on supply concerns and expectations of stronger growth.

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