Market snaps 4-day losing streak; Nifty regains 16,000 mark; Sun Pharma jumps 4%

The domestic equity market ended with sharp gains on Tuesday, snapping a four-day losing streak. After trading with steep losses for most part of the session, the barometer indices bounced in afternoon trade, tracking strength in European stock market. The Nifty settled above 16,000 mark after hitting the day`s low of 15,671.45 in afternoon trade. Metal and oil & gas stocks corrected on profit selling. On the other hand, IT, pharma and realty shares rallied.

The barometer index, the S&P BSE Sensex, jumped 581.34 points or 1.10% at 53,424.09. The Nifty 50 index advanced 150.30 points or 0.95% at 16,013.45. Both these indices dropped about 6% in the past four sessions.

Sun Pharmaceutical Industries (up 3.99%), NTPC (up 2.77%), ICICI Bank (up 1.93%) and HDFC (up 1.46%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 1.46% while the S&P BSE Small-Cap index gained 1.33%.

The market breadth was strong. On the BSE, 2,243 shares rose and 1,085 shares fell. A total of 99 shares were unchanged.

Numbers to Track:

In the commodities market, Brent crude for May 2022 settlement rose $2.69 at $125.9 a barrel. Soaring crude oil prices due to ongoing Russia-Ukraine crisis continued to spook investors.

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.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.12% to 99.175.

The yield on India`s 10-year benchmark federal paper rose to 6.896% as compared with 6.888% 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 76.9, compared with its close of 76.9350 during the previous trading session.

MCX Gold futures for 5 April 2022 settlement rose 0.59% to Rs 53,835.

Global Markets:

The Dow Jones futures were up 85 points, indicating a positive start in US markets today.

Most European markets advanced while Asian stocks declined on Tuesday. Wall Street`s main indices fell sharply on Monday as the prospect of a ban on oil imports from Russia sent crude prices soaring and fueled concerns about rising inflation.

A Western ban on Russian oil imports may more than double the price to $300 a barrel and prompt the closure of the main gas pipeline to Germany, Moscow reportedly warned on Monday. Brent, the international benchmark, briefly hit more than $139 a barrel, its highest level since 2008. A rejection of Russian oil would lead to catastrophic consequences for the global market, said Russian Deputy Prime Minister Alexander Novak.

Buzzing Segment:

The Nifty IT index jumped 2.69% to 35,055.55. The index fell 0.12% in the previous session.

L&T Technology Services (up 5.37%), Larsen & Toubro Infotech (up 3.44%), Mindtree (up 3.32%), TCS (up 3.13%), Tech Mahindra (up 2.87%), Coforge (up 2.17%), HCL Technologies (up 1.62%) and Mphasis (up 1.62%) advanced.

Infosys rose 2.03%. The IT major on Tuesday announced that it has expanded its collaboration with Dow Jones to focus on product enhancements and develop product portfolio. As part of the program, Infosys will work with Dow Jones to build and deliver an enhanced set of capabilities that will use analytics and machine learning to save decision-makers time and separate the signal from the noise.

Wipro advanced 2.69%. The IT firm announced the appointment of Turki Bin Nader as General Manager and Country Head for the Kingdom of Saudi Arabia (KSA).

Stocks in Spotlight:

Ramkrishna Forgings jumped 6.08%. The company said it entered business association from USA axle manufacturer for light vehicle segment. A leading Axle manufacturer in the USA has encouraged Ramkrishna Forgings for an estimated business of Rs 70 crore over a 5-year period. The products will be used in the rear axle applications.

NMDC rose 0.13%. The company increased prices of both, lump ore and iron fines, by Rs 400 per tonne, with immediate effect.

JSW Steel declined 1.25%. The steel maker`s standalone crude steel production for the month of February 2022 grew 21% year on year to 15.80 lakh tonnes as against 13.06 lakh tonnes in February 2021.

Adani Ports and Special Economic Zone (APSEZ) gained 1.76% after the company signed an agreement with Indian Oil Corporation towards augmentation of its crude oil volumes at Mundra. As part of the agreement, Indian Oil Corporation will expand its existing crude oil tank farm at Adani Ports` Mundra, enabling APSEZ to handle and blend additional 10 mmtpa crude oil.

Natco Pharma fell 0.04%. Natco Pharma, along with its marketing partner Arrow International (an affiliate of Teva Pharmaceutical Industries), announced launch of the first generic version of Revlimid (Lenalidomide capsules) in 5 mg, 10 mg, 15 mg, and 25 mg strengths in the U.S. market.

Dodla Dairy gained 1.49%. The company`s board has approved purchase of assets, business, and plant & machinery up to Rs 55 crore. It has also approved funding for subsidiaries Orgafeed, and Dodla Dairy Kenya, up to Rs 40 crore each.

Alembic Pharmaceuticals added 0.52%. The drug company on Tuesday informed that company`s joint venture, Aleor Dermaceuticals has received final approval from US Food and Drug Administration (USFDA) for nystatin and triamcinolone acetonide ointment. Nystatin and triamcinolone Acetonide Ointment is indicated for the treatment of cutaneous candidiasis.

Politics:

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.

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.

Economy:

A quantity of 725.93 LMT of Paddy has been procured in Kharif Marketing Season so far. The paddy procurement is progressing smoothly in procuring states including Chandigarh, Gujarat, Assam, Haryana, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Punjab, and Uttar Pradesh. Till now, about 102.29 lakh farmers have been benefitted with Minimum Support Price value of over Rs 1.42 lakh crore.

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