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Sensex rallies 817 pts, Nifty ends near 16,600; HUL jumps over 5%

Published on Mar 10, 2022 16:57

The benchmark indices settled with robust gains on Thursday, rising for the third straight day. The Nifty opened at 16,757.10 mark and traded with strong gains for most part of the day, tracking strong Asian cues. The index sharply pared gains and hit the low of 16,447.90 in mid-afternoon trade, following a weak opening in European stock market. It finally settled near 16,600 level due to fag-end buying. Barring the Nifty IT index, all the sectoral indices on the NSE ended in the green. FMCG shares were in demand.

The barometer index, the S&P BSE Sensex, jumped 817.06 points or 1.50% at 55,464.39. The Nifty 50 index advanced 249.55 points or 1.53% at 16,594.90. Both the indices climbed over 4.5% in three consecutive sessions.

Shares rallied on excitement of Bharatiya Janata Party (BJP) coming to power especially in an important state like Uttar Pradesh (UP). Current trends in counting showed that BJP may come to power in four out of five states that went to poll. This is an important factor boosting the market sentiment as the state election will decide how ruling party, BJP, approaches the general elections due in 2024.

In the broader market, the S&P BSE Mid-Cap index rose 1.06% while the S&P BSE Small-Cap index gained 1.18%.

The market breadth was strong. On the BSE, 2,433 shares rose and 929 shares fell. A total of 98 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, dropped 6.86% at 25.5825.

Politics:

The elections of the five states - Goa, Manipur, Punjab, Uttar Pradesh and Uttarakhand - were held in seven phases between 10 February 2022 to 7 March 2022. The results are being announced today, 10 March 2022.

So far, the ruling BJP is leading in UP, Goa, Manipur and Uttarakhand. In Punjab, Aam Admi Party (AAP) is all set to dethrone the incumbent Indian National Congress (INC).

In UP, BJP under CM Yogi Adityanath is expected to sweep the elections again, as the party has won 10 seats and currently leading on 241 seats.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper fell to 6.813% compared with 6.845% 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 76.42, compared with its close of 76.62 during the previous trading session.

MCX Gold futures for 5 April 2022 settlement rose 0.69% to Rs 53,109.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.3% to 98.243.

In the commodities market, Brent crude for May 2022 settlement rose $5.93 at $117.07 a barrel.

OPEC member United Arab Emirates said it supported pumping more oil into a market roiled by supply disruptions due to sanctions on Russia after it invaded Ukraine. Brent crude futures settled down $16.84, or 13.2%, at $111.14 a barrel, their biggest one-day decline since 21 April 2020.

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 down 319 points, indicating a weak opening in the US stock market today.

European markets were trading lower on Thursday, as investors monitor the war in Ukraine and fluctuations in commodity prices.

However, Asian markets closed higher, following an overnight bounce on Wall Street.

Buzzing Segment:

The Nifty FMCG index rose 3.03% to 35,530.30. The index has jumped 5.56% in three sessions.

Radico Khaitan (up 7.44%), Hindustan Unilever (up 5.16%), Procter & Gamble Hygiene & Health Care (up 3.73%), Colgate Palmolive (India) (up 3.17%) and United Spirits (up 3.13%) were major FMCG gainers.

Stocks In Spotlight:

Jindal Steel & Power (JSPL) jumped 4.07%. The company reported an 8% year on year increase in steel sales to 5.9 lakh tonnes in February 2022 as compared to 5.47 lakh tonnes sold in February 2021.

Jindal Stainless (Hisar) fell 0.57%. The company said it received AS 9100D Certification, a quality management system for aviation, space, and defence organizations. The certification validates the company`s competence to constantly meet highly stringent standards of the aerospace industry.

Kalpataru Power Transmission gained 2.70%. The EPC company received a Letter of Intent (LoI) for power transmission and distribution project in international market. The estimated value of the project stands at Rs 3,276 crore ($ 431 million). Kalpataru said the LoI is subject to fulfilment of certain conditions.

Zydus Lifesciences rose 1.63%. The drug maker announced that the group`s injectable facility at Jarod, Gujarat underwent a USFDA inspection from 24 February to 10 March 2022. The inspection was closed with three observations from USFDA. The drug company assured that it is confident of addressing and resolving the issues to the satisfaction of USFDA.

Exide Industries rose 2.13%. The company said it entered into a long-term technical collaboration with SVOLT Energy Technology (China) for lithium-ion cell manufacturing.

Coforge dropped 6.56% to Rs 4256.50 after a large block deal took place in the initial deals on the BSE today. At 9:15 IST, around 61.75 lakh equity shares, representing 10.14% of total equity of Coforge, changed hands at the counter on the BSE. The names of the buyers and sellers could not be ascertained. As on 31 December 2021, the promoter, Hulst BV held 49.97% stake in Coforge.

BGR Energy Systems hit an uper circuit of 10% at Rs 84.45 after the Madras High Court reinstated the order worth Rs 4,442.75 crore awarded to the company by Tamil Nadu Generation and Distribution Corporation (TANGEDCO).

In April 2021, TANGEDCO had canceled the letter of intent (LoI) regarding the award of contract to BGR Energy Systems for the execution of the 1X660 MW Supercritical Ennore Thermal Power Station (ETPS) expansion project. The company had moved the High Court of Madras challenging the said cancellation.

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