Market rises for 2nd session; Nifty closes above 17,285; VIX below 23 mark
Published on Mar 17, 2022 17:06
Equity indices settled with robust gains on Thursday, rising for the second trading session. The Nifty closed below the 17,300 mark after a hitting the day`s high of 17,344.60 in mid afternoon trade. Barring the Nifty IT index, all the sectoral indices on the NSE ended in the green.
The barometer index, the S&P BSE Sensex, gained 1,047.28 points or 1.84% to 57,863.93. The Nifty 50 index rallied 311.70 points or 1.84% to 17,287.05. Both these indices rose about 3.75% in two consecutive sessions.
HDFC (up 5.5%), Kotak Mahindra Bank (up 3.29%), Reliance Industries (up 3.18%), HDFC Bank (up 2.24%) and ICICI Bank (up 1.68%) boosted the indices.
The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, slumped 6.25% to 22.61.
In the broader market, the S&P BSE Mid-Cap index jumped 1.07% while the S&P BSE Small-Cap index rallied 1.18%.
Buyers outnumbered sellers. On the BSE, 2099 shares rose and 1303 shares fell. A total of 127 shares were unchanged.
Domestic market will remain closed tomorrow, 18 March 2022, on account of Holi.
A foreign brokerage downgraded India to `underweight` from `neutral`, saying GDP growth may disappoint, adding to the downside risks to EPS estimates. High inflation is hurting both households and businesses, the brokerage said as it noted that the MSCI India is trading at a 98% premium to the broader emerging market index. The brokerage said it retains its positive view on India`s defensive pocket as a shelter for volatile times. Domestic monetary tightening cycle is key to watch, it said.
Numbers to Track:
The yield on India`s 10-year benchmark federal paper fell to 6.778% compared with 6.788% 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 75.8400, compared with its close of 76.2100 during the previous trading session.
MCX Gold futures for 5 April 2022 settlement rose 0.92% to Rs 51,618.
The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.4% to 98.20.
In the commodities market, Brent crude for May 2022 settlement rose $4.40 or 4.49% $102.42 a barrel.
European shares were mixed while Asian stocks closed higher on Thursday, following overnight gains on Wall Street, while the US Federal Reserve announced its first rate hike in more than three years.
The Fed announced at the conclusion of its two-day meeting Wednesday that it will increase short-term interest rates by a quarter of a percentage point, a well-telegraphed move by the central bank as it seeks to control surging inflation. The Fed forecast a consensus funds rate of 1.9% by year`s end, which would mean a hike at each of the remaining central bank meetings this year.
Fed Chair Jerome Powell, speaking after the end of the two-day policy meeting, said the economy is strong enough to weather the rate hikes and maintain its current strong hiring and wage growth. He further added that the Fed needs to now focus on limiting the impact of price increases on American families.
Meanwhile, the International Court of Justice (ICJ) ordered Russia on Wednesday to stop the military actions it started in Ukraine on February 24. "The Russian Federation shall immediately suspend the military operations that it commenced on February 24 in the territory of Ukraine," the court said. The judges added Russia must also ensure that other forces under its control or supported by Moscow should not continue the military operation.
The Nifty Consumer Durables index jumped 2.40% to 28,241. The index has climbed 4.56% in two sessions.
Titan Company (up 4.59%), Whirlpool of India (up 4.49%), TTK Prestige (up 4.25%), Kajaria Ceramics (up 3.77%), Amber Enterprises (up 2.29%), Bata India (up 1.6%), Dixon Technologies (India) (up 1.59%) and Havells India (up 1.52%) advanced.
Voltas gained 2.21% after the board approved a proposal to enter into a joint venture arrangement with Highly International (Hong Kong), a wholly-owned subsidiary of Shanghai Highly (Group) Company. The companies plan to engage in the business of design, development, manufacture, marketing, sale and service of inverter compressors for room air conditioners, motors for inverter compressors and their associated parts including sourcing of raw materials & components required for manufacturing these products, on such terms and conditions as may be mutually agreed between the parties.
Stocks in Spotlight:
BEML rose 1.31%. The company`s board will meet on Tuesday, 22 March, to consider the recommendation of an interim dividend for the financial year 2021-22. The board has fixed Thursday, 30 March 2022 as the record date for the interim dividend.
Coastal Corporation jumped 5.34%. The company said its board will consider right issue of equity shares on 29 March 2022.
Happiest Minds Technologies gained 1.51%. The company announced a strategic partnership with OutSystems, a major player in the low-code application development market. Happiest Minds and OutSystems plans to transform how enterprise software is delivered to customers. This partnership will add low-code platform to Happiest Minds` portfolio, enabling companies to develop, deploy, and manage omnichannel enterprise applications that run in the cloud, on-premise, or hybrid environments.
Hindustan Construction Company (HCC) jumped 11.33% after the company, in consortium with Om lnfra (OMIL), was awarded Rs 609 crore contract by Public Health Engineering Department, Govt of Rajasthan. The contract is for the construction of the Nokha water supply project which will provide functional household tap connection (FHTC) in Bikaner District. The HCC share in the joint venture is 50%.
Oil India tumbled 5.95%. The company`s board approved an investment in its subsidiary company, Numaligarh Refinerym for the implementation of petrochemical project in Assam at an estimated capital cost of Rs 6,555 crore.
Godrej Properties surged 4.61%. The realtor announced that it sold 855 homes worth Rs 1,650 crore within a year of the launch of their project, Godrej Woods in Noida in March 2021, which includes a sales of Rs 509 crore in March 2021 and Rs 1,141 crore in FY22 YTD.
Allcargo Logistics rose 4.68%. The company`s board on Wednesday (16 March) declared an interim dividend of Rs 3 per share. The interim dividend will be paid to all shareholders of the company on or after 26 March 2022, whose names are registered as shareholders of the company as on the record date i.e. Friday, 25 March 2022.
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