Broader market rallies; TTML hits the roof

The main indices traded sideways near the intraday high in mid morning trade. The Nifty traded firm above the 17,700 mark. All sectoral indices traded in the green with media, banks and auto stocks in demand.

At 11:28 IST, the barometer index, the S&P BSE Sensex, jumped 544.71 points or 0.92% at 59,406.27. The Nifty 50 index advanced 156.7 points or 0.89% at 17,733.55.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index added 1.18% while the S&P BSE Small-Cap index rallied 1.5%.

The market breadth was strong. On the BSE, 2,261 shares rose and 945 shares fell. A total of 106 shares were unchanged.

Investors cheered the union budget 2022-23 with its higher capital expenditure and thrust on infra. The government`s focus on boosting manufacturing as well as an underlined emphasis on areas such as startups, modern mobility and clean energy, boosted investors sentiment.

COVID-19 Update:

India recorded 1,61,386 new cases in the last 24 hours. The daily positivity rate stood at 9.26% and while the weekly positivity rate was at 14.15%. The country`s active caseload currently stands at 16,21,603.

Buzzing Index:

The Nifty Media index rallied 2.54% to 2,301.85, rising for sixth consecutive trading session. The media gained surged 8.2% in six days.

TV18 Broadcast (up 10.4%), Network 18 Media & Investments (up 4.72%), Dish TV (up 4.22%), Nazara Technologies (up 1.91%), Hathway Cable & Datacom (up 1.86%) and Sun TV Network (up 1.46%) were top gainers in media space.

Zee Entertainment Enterprises rose 1.59%. The company will announce its financial results for quarter ended December 2021 today.

Stocks in Spotlight:

Tata Teleservices (Maharashtra) (TTML) hit an upper circuit limit of 5% at Rs 149.25 after the company said it has decided not to opt for conversion of interest related to adjusted gross revenue (AGR) dues into equity. TTML on Tuesday said it took the decision as the interest amount eligible for such conversion has turned out to be far lesser than the company`s own calculations. On 11 January 2022, TTML said it would convert interest on AGR dues into equity and had also communicated its decision to the telecom department. Following conversion, it was expected that the government would hold approximately 9.5% of the total outstanding shares of TTML at about Rs 41.50 per share. After the last month`s announcement, shares of TTML hit lower circuits in the past 14 consecutive sessions to correct over 51%. However, the Department of Telecommunications ("DoT") in response informed the company that the NPV (net present value) of the interest which is eligible for conversion into equity is only Rs 195.22 crore as against the company`s calculation of Rs 850 crore.

�As the interest amount eligible for conversion is much lesser than as expected and calculated by the Company, the Board of Directors of the Company, in its meeting held on February 1, 2022 has decided to withdraw the desire expressed for conversion and inform DoT that the Company is not desirous of opting for conversion of interest into equity," TTML said in a statement on Tuesday.

Hero Motocorp rose 0.1%. The two wheeler maker sold 3,80,476 units of motorcycles and scooters in January 2022, which is lower by 22% as compared with 4,85,889 units sold in January 2021. While domestic sales declined by 23% YoY to 3,58,660 units, exports increased by 20% YoY to 21,816 in January 2022. The third wave of pandemic, subsequent staggered state-wise lockdowns and restricted movement impacted the overall sales volume of the month, Hero Motocorp said.

Global Markets:

Most Asian stocks were trading higher on Wednesday, with multiple major markets in Asia remaining closed for the Lunar New Year holidays. Markets in mainland China, Hong Kong, Singapore and South Korea are closed on Wednesday for the Lunar New Year holidays.

US stocks rose for a third day Tuesday, as Wall Street tried to recover its footing after a wild January. Bank stocks led the market higher.

On the macro front, the Institute for Supply Management said its manufacturing index came in at 57.6 for January, down 1.2 points from December. The data also showed that prices jumped by 7.9 points to 76.1 month over month.

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