Sensex spurts 697 pts, Nifty ends above 17,300 mark

The domestic equity barometers settled with robust gains on Tuesday. The Nifty 50 index ended above 17,300 mark, reversing from the day`s low of 17,006.30 hit in morning trade.

Shares traded lower in the first half of the trading session amid firm crude prices and hawkish signals from US central bank. However, the market bounced back in afternoon trade as European markets opened higher, helped by reassuring comments from a top ECB official.

The S&P BSE Sensex surged 696.81 points or 1.22% at 57,989.30. The Nifty 50 index rallied 197.90 points or 1.16% to 17,315.50.

Tech Mahindra (up 3.83%), Reliance Industries (up 2.59%), ITC (up 2.21%) and TCS (up 2.09%) boosted the indices.

In the broader market, the BSE Mid-Cap index rose 0.17% and the BSE Small-Cap index gained 0.15%.

The market breadth was negative. On the BSE, shares 1,540 rose and 1,858 shares fell. A total of 115 shares were unchanged.

Economy:

The Reserve Bank of India will ensure ample liquidity to support the recovery of its economy, Governor Shaktikanta Das reportedly said, signaling above-target inflation was not as much of a threat to Asia`s third-largest economy at the moment. The RBI continues to be supportive of growth, Das said, addressing an industry lobby in Mumbai on Monday. Premature tightening of monetary policy settings would have proved counter-productive to demand, he added.

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 6.831% as compared with 6.781% at close in the previous trading session.

In the foreign exchange market, the rupee was flat against the dollar. The partially convertible rupee was hovering at 76.18, compared with its close of 76.18 during the previous trading session.

MCX Gold futures for 5 April 2022 settlement fell 0.15% to Rs 51,580.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.22% to 98.71.

In the commodities market, Brent crude for May 2022 settlement fell 46 cents at $115.16 a barrel. The contract rose $7.69 or 7.12% to settle at $115.62 a barrel during the previous trading session.

Foreign Markets:

The US Dow Jones index futures were up 185 points, indicating a positive opening in the US stocks today.

European markets advanced across the board while most Asian stocks ended higher on Tuesday.

China Eastern Airlines shares fell after the carrier`s Boeing 737 passenger jet crashed in southern China on Monday.

Investors continue to watch the situation in Ukraine as ongoing peace talks between Moscow and Kyiv fail to make progress. On Monday, Ukraine refused to surrender the port city of Mariupol to Russian forces following an ultimatum from Moscow.

Russia`s war in Ukraine will dent euro zone growth but the block is still set to expand, even if the conflict escalates, European Central Bank Vice President Luis de Guindos said on Tuesday.

"So, we can so far dismiss the possibility of stagflation because even in the weakest scenario we are looking at growth of around 2% in 2022," he told a conference, referring to a phenomenon of high inflation coupled with stagnating growth.

Investors also digested Monday`s hawkish comments from Federal Reserve Chairman Jerome Powell in the wake of last week`s interest rate hike of 25 basis points, the likely start of a sustained tightening cycle.

Powell said the central bank must move "expeditiously" to raise rates and possibly "more aggressively" to keep inflation from getting entrenched. Analysts now expects the Fed to raise interest rates by 50 basis points at both its May and June meetings.

Buzzing Segment:

The Nifty Oil & Gas index rose 1.87% to 7,697.35. The index fell 0.64% in the previous session.

Adani Total Gas (up 3.91%), BPCL (up 3.02%), Reliance Industries (up 2.46%), Indian Oil Corporation (up 2.16%), MRPL (up 2.05%) and HPCL (up 1.52%) advanced.

Share-run ONGC rose 1.68% as crude oil prices firmed up. Higher crude oil prices boost oil explorers` average realisation from every barrel of the oil sold.

Stocks In Spotlight:

Tata Motors rose 2.89%. The auto major said it will increase prices of its commercial vehicles from 1st April 2022. It will hike prices in the range of 2-2.5% across the range, depending upon individual model and variant.

Larsen & Toubro (L&T) rose 1%. The board of L&T will meet on Thursday, 24 March 2022, to consider raising funds, including through issue of debt securities, as part of company`s refinancing program.

Wipro climbed 1.62%. The board of IT major is scheduled to meet on 25 March 2022, to consider interim dividend for the financial year ending 2021-22.

Equitas Small Finance Bank rose 1.89% and Equitas Holdings jumped 3.06%. Equitas SFB board approved a scheme of amalgamation between Equitas Holdings and Equitas Small Finance Bank. Shareholders will get 231 shares of Equitas Small Finance Bank in exchange for 100 shares of Equitas Holdings, subject to regulatory and court approvals.

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