Sensex rallies 1223 pts, Nifty ends at 16,345.35; Asian Paints jumps 5.5%

The domestic equity indices surged on Wednesday, extending gains for the second day. Strong uptrend in European stock market and US index futures boosted investors sentiment. After hitting the day`s low of 15,990 in initial deals, the Nifty marched higher as the session progressed and hit the day`s high of 16,418.05 in mid-afternoon trade. Media, IT and pharma stocks were in demand while metal stocks corrected for second day.

The barometer index, the S&P BSE Sensex, jumped 1,223.24 points or 2.29% at 54,647.33. The Nifty 50 index advanced 331.90 points or 2.07% at 16,345.35.

Asian Paints (up 5.56%), Reliance Industries (up 5.24%), Bajaj Finance (up 5.13%) and HDFC Bank (up 3.29%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 2.37% while the S&P BSE Small-Cap index gained 2.16%.

The market breadth was strong. On the BSE, 2,625 shares rose and 722 shares fell. A total of 88 shares were unchanged.

Investors also took position in domestic equities ahead of UP state election results scheduled on 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.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 6.845% 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 76.56, compared with its close of 77 during the previous trading session.

MCX Gold futures for 5 April 2022 settlement fell 1% to Rs 53,682.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.59% to 98.493.

In the commodities market, Brent crude for May 2022 settlement fell $1.42 at $126.56 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.

Global Markets:

The Dow Jones futures were up 458 points, indicating a strong opening in the US stock market today.

European shares surged 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.

Buzzing Segment:

The Nifty Media index jumped 4.05% to 2,125.35. The index has rallied 6.92% in two sessions.

TV18 Broadcast (up 9.05%), Zee Entertainment Enterprises (up 5.79%), Network18 Media & Investments (up 4.99%), Sun TV Network (up 4.37%), Saregama India (up 3.14%), PVR (up 2.98%), Hathway Cable & Datacom (up 1.93%) and DishTV India (up 1.67%) surged.

Stocks in Spotlight:

Shares of three aviation firms surged after India announced resumption of international flight services from 27 March 2022.

InterGlobe Aviation (up 6.94%), SpiceJet (up 6.05%) and Jet Airways (India) (up 4.97%) surged.

India had suspended all scheduled international flights on 23 March 2020, ahead of a nationwide lockdown imposed to curb the spread of Covid-19.

Jindal Photo hit a lower circuit limit of 5% at Rs 312.45 after the company`s promoters offered to delist the firm`s shares from the stock exchanges.

Soyuz Trading Company, one of the members of promoter and promoter group of Jindal Photo, has offered to voluntarily delist the company`s equity shares from National Stock Exchange of India (NSE) and BSE. The acquirer has offered to acquire 27,98,511 equity shares, representing 27.28% of the total paid up equity share capital of the company from the public shareholders. The floor price for the delisting offer has been determined as Rs 268.04 per equity share. The indicative price for the delisting offer has been determined as Rs 269 per equity share.

ISGEC Heavy Engineering spurted 3.46%. ISGEC has received an order from Shree Cement for cement waste heat recovery boilers for their 3.8 MTPA (million tonnes per annum) clinker capacity, integrated cement plant at Nawalgarh in Rajasthan.

Bharat Forge advanced 2.33%. The forging company announced incorporation of a step-down subsidiary, Sagar-Manas Technologies (SMTL). Kalyani Strategic Systems (KSSL), a wholly owned subsidiary of Bharat Forge has incorporated SMTL on 7 March 2022, as a wholly owned subsidiary. SMTL is incorporated as a part of a joint venture agreement executed between KSSL and Kyrgyzstan-based Open Joint Stock Company Dastan Transnational Corporation ("Dastan"). The JV aims to participate in joint upgradation and manufacturing/providing solutions for marine and defence products, which will be undertaken through SMTL as a special purpose vehicle.

Atul slipped 1.45%. The company announced that it has recently completed the expansion of its Sulphur Black manufacturing facility. Its production capacity will increase from 9,800 tonnes per annum to 26,000 tonnes per annum.

HIL rose 0.16%. In an exchange filing, HIL said, "KR Veerappan, chief financial officer and key managerial personnel of HIL has tendered his resignation as of 8 March 2022." The company further said that 10 May 2022 will be KR Veerappan`s last working day.

Larsen & Toubro rallied 1.95%. The heavy civil infrastructure business vertical of L&T Construction has won a significant order from the prestigious Delhi Metro Rail Corporation (DMRC) to design and construct the Underground Metro Project of Phase-IV of Delhi MRTS. As per L&T`s classification, the value of the significant project is 1,000 to 2,500 crore.

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