The benchmark indices ended with robust gains on Wednesday, extending gains for the second day. The Nifty bounced from the day's low of 15,990 to closed near 16,350 mark. Rally in autos and banks stocks boosted the indices higher. Barring the Nifty Metal index, all the sectoral indices on the NSE were in the green.
As per provisional closing data, the barometer index, the S&P BSE Sensex, jumped 1,223.24 points or 2.29% at 54,647.33. The Nifty 50 index advanced 331.90 points or 2.07% at 16,345.35.
In the broader market, the S&P BSE Mid-Cap index rose 2.37% while the S&P BSE Small-Cap index gained 2.17%.
The market breadth was strong. On the BSE, 2,655 shares rose and 686 shares fell. A total of 94 shares were unchanged.
Politics:
Investors took position in equities ahead of the results of UP state election scheduled for Thursday. 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.
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.
LIC IPO:
State-owned insurance major Life Insurance Corporation of India (LIC) on Tuesday received capital market regulator Sebi's go-ahead to raise funds through an initial share sale. The government will sell over 31 crore equity shares of LIC.
Buzzing Index:
The Nifty Bank index rose 1.98% to 33,815.45. The index rose 2.87% in three trading sessions.
IndusInd Bank (up 4.59%), AU Small Finance Bank (up 4.32%), IDFC First Bank (up 3.82%), HDFC Bank (up 3.26%) and Federal Bank (up 2.90%) were the top gainers in the Bank segment.
Stocks in Spotlight:
Bharat Forge advanced 2.33%. The forging company announced incorporation of a step-down subsidiary, Sagar-Manas Technologies (SMTL). Kalyani Strategic Systems (KSSL), a wholly owned subsidiary of Bharat Forge has incorporated SMTL on 7 March 2022, as a wholly owned subsidiary. SMTL is incorporated as a part of a joint venture agreement executed between KSSL and Kyrgyzstan-based Open Joint Stock Company Dastan Transnational Corporation ("Dastan"). The JV aims to participate in joint upgradation and manufacturing/providing solutions for marine and defence products, which will be undertaken through SMTL as a special purpose vehicle.
Atul slipped 1.52%. Atul on Wednesday announced that it completed the expansion of its Sulphur Black manufacturing facility. The expansion will see production capacity increase from 9,800 tonnes per annum to 26,000 tonnes per annum. The integrated plant will produce both, liquid as well as powder formulations. Atul further said that the plant will be equipped with a zero liquid discharge facility in line with the commitment of the company towards sustainability. The products are GOTS approved and Oeko-Tex Standard 100 compliant.
HIL lost 0.69%. On Wednesday, the company announced that the company's chief financial officer and key managerial personnel has tendered resignation. In an exchange filing, HIL said, KR Veerappan, chief financial officer and key managerial personnel of HIL has tendered his resignation as of 8 March 2022. The company further said that 10 May 2022 will be KR Veerappan's last working day.
Larsen & Toubro rallied 2.04%. On Wednesday, the firm announced that the company's heavy civil infrastructure business won a significant order from Delhi Metro Rail Corporation. As per L&T's classification, the value of the significant project is 1,000 to 2,500 crore. The project is for design and construct of the underground metro project of phase IV of Delhi MRTS. The major scope of work for the project comprises design and construction of five kilometer of twin tunnel by shield tunnel boring machine (TBM), cut and cover tunnel box, underground ramp and four underground stations.
ISGEC Heavy Engineering spurted 3.46%. Isgec has received an order from Shree Cement for Cement Waste Heat Recovery Boilers for their 3.8 MTPA (million tonnes per annum) clinker capacity, integrated Cement Plant at Nawalgarh, District Jhunjhunu, Rajasthan.
Global Markets:
The Dow Jones futures recovered sharply and were now up 474 points, indicating a positive opening in the US stock market today.
European shares rose across the board while most Asian stocks declined on Wednesday as investors continue to monitor surging commodities prices and the ongoing war in Ukraine.
U.S. President Joe Biden announced that the U.S. will ban imports of Russian oil. The move risks exacerbating existing price surges on supply concerns and expectations of stronger growth.
In the commodities market, Brent crude for May 2022 settlement rose $3.20 at $124.78 a barrel. A spike in crude oil prices has raised concerns over the impact on inflation, currency and input cost for companies across sectors as India imports majority of its crude oil requirements. Higher crude oil prices could increase India's expenditure and adversely affect the fiscal deficit.
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