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 indices bounced back in afternoon trade, tracking strength in European stock market and recovery in US index futures. Metal and oil & gas stocks corrected on profit selling. On the other hand, IT, pharma and realty shares rallied.
As per provisional closing data, 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.
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, 2,233 shares rose and 1,101 shares fell. A total of 93 shares were unchanged.
In the commodities market, Brent crude for May 2022 settlement rose $2.95 at $126.16 a barrel. Soaring crude oil prices due to ongoing Russia-Ukraine crisis continued to spook investors. India imports majority of its crude oil requirements. A spike in crude oil prices has raised concerns over the impact on inflation, currency and input cost for companies across sectors. Higher crude oil prices could increase India's expenditure and adversely affects the fiscal deficit.
Politics:
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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.
Buzzing Index:
The Nifty Metal index fell 1.59% to 6,038.35. The index rose 2.10% in the previous trading session.
Hindalco Industries (down 4.96%), NALCO (down 3.82%), SAIL (India) (down 2.35%), Tata Steel (down 2%) and Vedanta (down 1.56%) were the top losers in the Metal segment.
JSW Steel declined 1.15%. 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. While the production of flat rolled products increased by 25% to 11.54 lakh tonnes, production of long rolled products rose 8% to 3.67 lakh tonnes in February 2022 over February 2021. JSW Steel said the average capacity utilisation on expanded capacity was 88% while the utilisation was at 98% excluding Dolvi expansion project.
NMDC lost 0.36%. The state-run firm increased prices of both, lump ore and iron fines, by Rs 400 per tonne, with immediate effect. The company has fixed prices for lump iron ore (65.5%, 6-40mm) at Rs 6,000 per ton and iron fines (64% - 10mm) at Rs 4,960 per ton with effect from 8 March 2022. On February 25, NMDC had fixed prices for lump iron ore (65.5%, 6-40mm) at Rs 5,600 per ton and iron fines (64% - 10mm) at Rs 4,560 per ton.
Stocks in Spotlight:
Wipro advanced 2.68%. The IT firm announced the appointment of Turki Bin Nader as General Manager and Country Head for the Kingdom of Saudi Arabia (KSA).
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 0.38%. 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.
Ramkrishna Forgings jumped 5.05%. 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.
Global Markets:
The Dow Jones futures recovered sharply and were now up 76 points, indicating a positive opening in the US stock market.
Most European markets advanced while Asian stocks declined across the board 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, as talks on Ukraine hardly advanced amid efforts to agree on civilian safe passage. 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.
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