Shares extend gains; Nifty above 16,680 mark

The domestic stock indices were trading with strong gains in morning trade amid positive global cues. Value buying emerged after the key domestic barometers slumped over 6.2% in the past seven consecutive sessions. All the sectoral indices on the NSE rallied.

At 10:20 IST, the barometer index, the S&P BSE Sensex, surged 1,427.66 points or 2.62% to 55,957.57. The Nifty 50 index jumped 434.20 points or 2.67% to 16,682.15.

In the broader market, the S&P BSE Mid-Cap index spurted 4.18% while the S&P BSE Small-Cap index surged 4.27%.

Buyers outpaced sellers. On the BSE, 2523 shares rose and 597 shares fell. A total of 111 shares were unchanged.

Buzzing Indian Segment:

The Nifty Media index surged 5.09% to 2,004.75. The index slumped 6.95% in the previous trading session.

Nazara Technologies (up 8.15%), TV18 Broadcast (up 7.64%), Zee Entertainment Enterprises (up 6.83%), DishTV India (up 5.42%), PVR (up 5.07%), Hathway Cable & Datacom (up 4.69%), Sun TV Network (up 4.34%), INOX Leisure (up 4.24%), Network18 Media & Investments (up 3.28%) and Saregama India (up 1.64%) surged.

Index Rejig:

Apollo Hospitals Enterprise (up 2.90%) will replace Indian Oil Corporation (up 2.77%) in the 50-share benchmark NIFTY 50 index effective Thursday, 31 March 2022.

Meanwhile, FSN E-Commerce Ventures (up 2.91%), Indian Oil Corporation, MindTree (up 3.30%), One 97 Communications (up 3.36%), SRF (up 4.79%) and Zomato (up 4.21%) will replace Apollo Hospitals Enterprise, Aurobindo Pharma (up 1.98%), Hindustan Petroleum Corporation (up 0.13%), Indraprastha Gas (up 3.18%), Jindal Steel & Power (up 5.16%) and Yes Bank (up 4.12%) in the NIFTY Next 50 index.

Further, Bank of Baroda (up 4.67%) will replace RBL Bank (up 7.41%) in the NIFTY Bank index.

Stocks in Spotlight:

Bharat Electronics (BEL) jumped 5.43%. The Ministry of Defence has signed a contract for Rs. 1075 crore with BEL for the retro-modification of commander sight of battle tanks-T-90. The retro-modification will be carried out in 957 T-90 tanks of the Indian Army.

Dr. Reddy`s Laboratories rose 1.29%. The drug maker announced that it has entered into a definitive agreement to acquire Nimbus Health GmbH. Nimbus Health is a privately owned, licensed pharmaceutical wholesaler from Germany focusing on medical cannabis in Germany. Dr. Reddy`s will acquire Nimbus Health for an upfront payment plus performance and milestone-based earn-outs over the next four years.

Economy:

American credit rating agency, Moody`s Investors Service has raised India`s growth forecast to 9.5% from 7% for the calendar year 2022, citing a stronger-than-expected economic recovery from the national lockdown of 2020 and the second wave of the COVID-19 pandemic in mid-2021.

Moody`s said in a statement that they have raised the 2022 calendar year growth forecasts for India and maintained the forecast for 5.5% growth in 2023. This translates into 8.4% growth in fiscal year 2022-23 and 6.5% growth in fiscal year 2023-24. However, it flagged high oil prices and supply distortions as a drag on growth.

It said, Indian economy is estimated to have surpassed the pre-COVID level of GDP by more than 5% in the last quarter of 2021 and added that sales tax collection, retail activity and PMIs suggest solid momentum.

The Agency said, 2022 Budget prioritised growth, with a 36 percent increase in allocation to capital expenditure to 2.9% of GDP for the fiscal year 2022-23. It said, with the RBI leaving interest rates unchanged at its February meeting, monetary policy remains supportive.

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