Sensex rallies 1,039 pts ahead of US Fed decision

The main indices resumed their uptrend after a day's pause and ended with robust gains on Wednesday. The Nifty managed to close above the 16,950 level. The Nifty closed tad below its 200 days simple moving average placed at 16988.79. All the sectoral indices on the NSE were in the green. Buying was supported by a slump in crude oil prices. All eyes would be on the outcome of US Fed meet where investors are anticipating first U.S. interest rate hike in three years.

As per the provisional closing data, the barometer index, the S&P BSE Sensex, surged 1,039.8 points or 1.86% at 56,816.25. The Nifty 50 index gained 302.7 points or 1.82% at 16,965.70.

Broader markets closed with major gains. The S&P BSE Mid-Cap index added 1.8% while the S&P BSE Small-Cap index rose 1.47%.

Buyers outnumbered sellers. On the BSE, 2,307 shares rose and 1,123 shares fell. A total of 104 shares were unchanged.

In the commodities market, Brent crude for May 2022 settlement rose $1.27 at $101.18 a barrel. Oil prices have declined 11% in two trading sessions and settled below the $100 mark for the first time since the start of Russia Ukraine conflict. Crude prices have also come under pressure amid spike in COVID-19 cases in China.

Stocks in Spotlight:

Tata Consultancy Services gained 1.67% to Rs 3,655.4 after the IT bellwether was selected by Singapore Exchange (SGX) as strategic partner for its NSE IFSC-SGX Connect in Gift City. SGX will use TCS' flagship solution, TCS BaNCS for trading and enabling Nifty Trading Between India and Singapore. TCS BaNCS provides a comprehensive and scalable trading platform for broker-dealers, spanning both institutional and retail business lines. SGX selected TCS BaNCS for its multi-broker, low latency capabilities, to serve as the end-to-end solution for its trading, clearing, settlement and risk management operations.

Tata Communications surged 3.94% after the company announced a multi-year strategic collaboration with Formula 1. Under the collaboration, Tata Communications will function as the official broadcast connectivity provider of Formula 1. Tata Communications will empower Formula 1 with global end-to-end managed network services for video contribution.

Zomato fell 0.91%. The company said its board of directors approved acquisition of securities in Mukunda Foods Private Limited for an aggregate cash consideration of INR equivalent of US$5 million and grant of loan up to INR equivalent of US$150 million to Grofers India Private Limited.

Punjab National Bank was down 0.42%. The state-run bank has reported a fraud of Rs 2,060.14 crore in the NPA account of IL&FS Tamil Nadu Power Company (ITPCL) at Extra Large Corporate Branch, Delhi. Punjab National Bank (PNB) informed that it has already made provisions amounting to Rs 824.06 crore as per prescribed prudential norms. ITPCL is a SPV incorporated by IL&FS Group under the energy platform (i.e. IEDCL) for implementation of the Thermal Power Project ("Project"), at Cuddalore in Tamil Nadu.

Shyam Metalics and Energy advanced 5.12% after the company said that the board has approved setting up of further capacities at its integrated units in Sambalpur and its material subsidiary's plant at Jamuria. The aim of the capital expenditure is to capitalize business synergies and add facilities for continued cost leadership. The steel maker said that an aggregate amount of Rs 990 crore is will be arranged from cash flows generated from internal accruals.

Unichem Laboratories advanced 3.36% after the drug maker said it received ANDA approval for its Nebivolol tablets from the drug regulator, USFDA to market a generic version of Bystolic (Nebivolol) tablets of Allergan Sales. Nebivolol tablets are indicated for the treatment of hypertension. The product will be commercialized from Unichem's Ghaziabad plant in Uttar Pradesh.

Global Markets:

Shares in Europe and Asia advanced on Wednesday. China continues to grapple with its most severe Covid outbreak since the height of the pandemic in 2020, with major cities scrambling to limit business activity.

US stocks rallied on Tuesday as oil prices continued to drop further below $100 on hopes of an end to the conflict in Ukraine.

The gains came as traders continued to eye the latest with ceasefire negotiations in Ukraine and China Covid lockdowns that could wreak havoc on tech supply chains. Investors are anticipating a big Federal Reserve monetary decision Wednesday, in which the central bank is expected to hike rates by a quarter point, its first hike since 2018.

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