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Sensex, Nifty rally for second trading session

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Capital Market
Last Updated : Mar 17 2022 | 4:31 PM IST
Equity indices extended their winning run to second trading session and closed with strong gains on Thursday. The Nifty closed a tad below the 17,300 mark after a hitting a day's high of 17,344.60 in mid afternoon trade. All sectoral indices on the NSE ended in the green with consumer durable, realty and financial stocks rallying the most.

As per the provisional closing data, the barometer index, the S&P BSE Sensex, was up 1,047.28 points or 1.84% to 57,863.63. The Nifty 50 index rallied 332.25 points or 1.9% to 17,297.65.

In the broader market, the S&P BSE Mid-Cap index jumped 1.07% while the S&P BSE Small-Cap index rallied 1.18%.

Buyers outnumbered sellers. On the BSE, 2,113 shares rose and 1,295 shares fell. A total of 121 shares were unchanged.

The domestic stock market will remain closed tomorrow, 18 March 2022, on account of Holi.

Economy:

A foreign brokerage downgraded India to 'underweight' from 'neutral', saying GDP growth may disappoint, adding to the downside risks to EPS estimates. High inflation is hurting both households and businesses, the brokerage said as it noted that the MSCI India is trading at a 98% premium to the broader emerging market index. The brokerage said it retains its positive view on India's defensive pocket as a shelter for volatile times. Domestic monetary tightening cycle is key to watch, it said.

Stocks in Spotlight:

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BEML rose 1.35%. The company on Wednesday announced that a meeting of the board of directors will be held on Tuesday, 22 March to consider the recommendation of an interim dividend for the financial year 2021-22. The board has fixed Thursday, 30 March 2022 as the record date for the purpose of ascertaining the eligibility of shareholders for payment of interim dividend.

Coastal Corporation jumped 5.45%. The company said its board will consider right issue of equity shares on 29 March 2022. The company in an exchange filing said that the board of the company will meet on Tuesday, 29 March 2022 to consider a proposal to issue equity shares to the existing shareholders on right basis, subject to such regulatory/statutory approvals.

Happiest Minds Technologies gained 0.92%. The company announced a strategic partnership with OutSystems, a major player in the low-code application development market. Happiest Minds and OutSystems plans to transform how enterprise software is delivered to customers. This partnership will add low-code platform to Happiest Minds' portfolio, enabling companies to develop, deploy, and manage omnichannel enterprise applications that run in the cloud, on-premise, or hybrid environments.

Hindustan Construction Company (HCC) jumped 11.33% after the company, in consortium with Om lnfra (OMIL), was awarded Rs 609 crore contract by Public Health Engineering Department, Govt of Rajasthan. The contract is for the construction of the Nokha water supply project which will provide functional household tap connection (FHTC) in Bikaner District. The HCC share in the joint venture is 50%.

Oil India tumbled nearly 7%. The company's board approved an investment in its subsidiary company, Numaligarh Refinery for the implementation of petrochemical project in Assam at an estimated capital cost of Rs 6,555 crore.

Voltas gained 1.84% after the board approved a proposal to enter into a joint venture arrangement with Highly International (Hong Kong), a wholly-owned subsidiary of Shanghai Highly (Group) Company. The companies plan to engage in the business of design, development, manufacture, marketing, sale and service of inverter compressors for room air conditioners, motors for inverter compressors and their associated parts including sourcing of raw materials & components required for manufacturing these products, on such terms and conditions as may be mutually agreed between the parties.

Godrej Properties surged 4.55%. The realtor announced that it sold 855 homes worth Rs 1,650 crore within a year of the launch of their project, Godrej Woods in Noida in March 2021, which includes a sales of Rs 509 crore in March 2021 and Rs 1,141 crore in FY22 YTD.

Allcargo Logistics rose 4.49%. The company's board on Wednesday (16 March) declared an interim dividend of Rs 3 per share. The interim dividend will be paid to all shareholders of the company on or after 26 March 2022, whose names are registered as shareholders of the company as on the record date i.e. Friday, 25 March 2022.

Global Markets:

European markets declined while Asian stocks settled higher on Thursday following overnight gains on Wall Street, while the US Federal Reserve announced its first rate hike in more than three years.

The Fed announced at the conclusion of its two-day meeting Wednesday that it will increase short-term interest rates by a quarter of a percentage point, as it seeks to control surging inflation. The Fed forecast a consensus funds rate of 1.9% by year's end, which would mean a hike at each of the remaining central bank meetings this year.

Fed Chair Jerome Powell, speaking after the end of the two-day policy meeting, said the economy is strong enough to weather the rate hikes and maintain its current strong hiring and wage growth. He further added that the Fed needs to now focus on limiting the impact of price increases on American families.

Meanwhile, the International Court of Justice (ICJ) ordered Russia on Wednesday to stop the military actions it started in Ukraine on February 24. "The Russian Federation shall immediately suspend the military operations that it commenced on February 24 in the territory of Ukraine," the court said. The judges added Russia must also ensure that other forces under its control or supported by Moscow should not continue the military operation.

Crude oil lost ground for the fifth time in the last six days on Wednesday as traders reacted to hoped-for progress in Russia-Ukraine peace talks and a surprising increase in US inventories.

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First Published: Mar 17 2022 | 3:34 PM IST

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