Ajit Mishra, VP - Research, Religare Broking:
Markets extended yesterday’s rebound and gained over 2%, tracking recovery in global indices. After the flat start, the benchmark inched gradually higher as the day progressed and settled closer to the day’s high.
All sectors, barring metal, participated in the move wherein heavyweights like Reliance, HDFC Bank and Infosys contributed half of the index gains. In the latter half, short-covering further added to the recovery. The broader markets too participated wherein both Midcap and Smallcap ended higher by 2.4% and 2.1% respectively.
The recent rebound is in line with the global counterparts and it would be too early to call it a reversal. Besides the geopolitical updates, domestic factor i.e. states' election results will also be in focus. We expect volatility to remain high so participants should prefer hedged trades.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
The Nifty had formed a bullish outside bar along with an Engulfing Bull candle on the daily chart on March 08. As a follow through of these bullish patterns, the index witnessed sustained recovery on March 09.
On the way up, the index has crossed the key hourly moving averages as well as the key hurdle of 16200. The hourly momentum indicator, which was showing positive divergence, is now holding out firmly in the positive territory.
The overall structure shows that the recovery has started from a strong support zone i.e. 15700-15800 & the recovery is expected to continue further. Going ahead, the index is expected to test the crucial barrier of 16800 where it had stumbled in the last week.
Mohit Nigam, Head - PMS, Hem Securities:
Even though oil prices surged due to a US import embargo on Russian oil, Indian benchmark indices were off to a strong start today. Buying was seen across the BSE sectoral front, with stocks from the Energy, TECK, and IT counters attracting the most attention.
The general market breadth is in favor of increase today. European markets rebounded as buyers bought stocks that had been battered in the recent market selloff. After Ukrainian President Zelenskyy announced the country was no longer interested in NATO membership, investors bought beaten-down shares in the hopes of de-escalating the Russia-Ukraine war.
Net domestic positive flows are currently sustaining the enormous withdrawals observed by FIIs on a daily basis. The robust SIP flow of 11k crore monthly, which continues to expand, accounts for a substantial portion of the positive flows.
On the technical front, immediate support and resistance in Nifty 50 are 16100 and 16500 respectively. For the Bank Nifty immediate support and resistance are 33200 and 34500 respectively.
Norbert Rücker Head of Economics & Next Generation Research at Julius Baer:
The isolation of Russia leaves a gap on the oil market. The fluidity of the situation and the uncertainty of how supply chains will adjust creates extreme nervousness on oil markets and fuels the oil price spike.
The United States’ and the United Kingdom’s ban of Russian oil is not a fundamental game changer. The world is not about to run out of oil. We are witnessing a price crisis rather than a supply crisis. Beyond the near-term uncertainty, we have confidence that the oil price spike follows more or less known patterns. Such sharp up moves usually follow down moves within weeks and months, not years.
Vinod Nair, Head of Research at Geojit Financial Services:
Domestic indices carried forward yesterday’s gains following a clawback in European markets and US futures as smart investors saw value in the current market valuations. Dip buying is noticed in heavyweights, defensives like IT & Pharma, and value buying in Pvt banks.
Oil prices continued to rise after the US banned Russian oil imports. The domestic market is also reacting positively to exit polls and in anticipation of in-line state election results.
In the near term, the domestic market will trade as per the positive or negative surprise in the state election results and global trend.
S Ranganathan, Head of Research at LKP securities:
D-Street Bulls finally held the upper hand today on reports suggesting that the Ukrainian President is no longer pressing for NATO membership.
With Covid behind, short-covering coupled with the exit poll results buoyed the bulls as benchmark indices rose almost 3% in late afternoon trade with major sectoral indices ending in the Green.
Domestic investors who have reposed faith in the GOI policies amidst the turmoil and volatility would be keenly watching the impact of rising oil & commodity prices on inflation and corporate earnings.
Market Close:
Benchmark indices ended higher for the second consecutive day on March 9 with Nifty closing above 16,300 mark.
At close, the Sensex was up 1,223.24 points or 2.29% at 54,647.33, and the Nifty was up 331.90 points or 2.07% at 16,345.40. About 2585 shares have advanced, 681 shares declined, and 90 shares are unchanged.
Asian Paints, Reliance Industries, Bajaj Finance, M&M and IndusInd Bank were among the top Nifty gainers. On the other hand, Shree Cements, Power Grid Corporation, ONGC, NTPC and Coal India were the biggest losers.
Except metal, all other sectoral indices ended in the green with capital goods, auto and realty indices up 2-3 percent. BSE smallcap and midcap indices gained 2 percent each.
Jefferies view on IndusInd Bank:
According to Jefferies the valuations of IndusInd Bank is looking attractive and reiterated buy rating with target of Rs 1,220 per share.
The independent review of issues around bank’s MFI loans is in-line with management’s indications.
There were certain process gaps, but incremental financial impact may be limited, it added.
IndusInd Bank was quoting at Rs 875.80, up Rs 35.50, or 4.22 percent on the BSE.
Euro rises 0.5% against the dollar ahead of ECB
The euro and other European currencies edged up on Wednesday ahead of this week's central bank meeting and supported by reports that the European Union was discussing joint bond issuance to finance energy and defence spending.
After touching a 22-month low on Monday sliding to as much as $1.0806, the euro rose 0.5% on the day to $1.0946 helped by a report citing unnamed officials that said the European Union was discussing joint bond issuance.
Sterling rose 0.3% against the dollar to $1.3134.
BSE Realty index added 2 percent led by the Macrotech Developers, Indiabulls Real Estate, Oberoi Realty
CLSA view on Nazara Technologies:
Foreign broking firm CLSA has retained sell on Nazara Technologies with target of Rs 1,615 per share.
Three high courts were scrapping the blanket ban on online gaming. India’s dichotomy between Centre & States’ regulations is a significant sector challenge.
Company’s core business will see a boost with physical eSports events starting Q1FY23.
Nazara Technologies was quoting at Rs 1,743.00, down Rs 44.75, or 2.50 percent on the BSE.
Nifty Bank index rose 1 percent supported by the IndusInd Bank, AU Small Finance Bank, IDFC First Bank
Karma Capital partners with Emkay Global Financial Services:
Karma Capital, a leading equity led portfolio management firm has entered into an agreement with Emkay Global Financial Services for the distribution of its investment solutions. Karma Capital’s entire suite of Alternative Investment Funds (AIF) and Portfolio Management Services (PMS) will now be available to Emkay Global’s customer base.
Emkay Global Financial Services was quoting at Rs 105.50, up Rs 3.35, or 3.28 percent on the BSE.
Market at 3 PM
Benchmark indices continued to trade higher with Nifty above 16300 led by buying across the sectors barring metals.
The Sensex was up 1,316.33 points or 2.46% at 54740.42, and the Nifty was up 361.40 points or 2.26% at 16374.90. About 2546 shares have advanced, 600 shares declined, and 89 shares are unchanged.
J Kumar Infraprojects bags orders worth Rs 2,030 crore
J Kumar Infraprojects has received work order from M/s. Pune Municipal Corporation for Development of Mula Mutha River from Bund Garden Bridge to Mundhwa (Stretch 10 and 11) under Pune River Rejuvenation Project and Construction & Development of Riverside Road from Bund Garden Bridge to Mundhwa (Right Hand Side) on Public Private Partnership Module against Development Credit Note awarded amounting to Rs 604,75,33,736.
Also received letter of acceptance for the execution the contract DC-08: design and construction of Twin Tunnel (Up & Down Line) by Shield TBM, Cut and Cover Tunnel box and four Underground stations namely Aerocity, Mahipalpur, Vasant Kunj and Kishangarh with Entry/Exits & Connecting subways from chainage (-) 760 mt. to 5356.285 mt. of Aerocity to Tughlakabad Corridor of Phase-IV of Delhi MRTS worth Rs 1426,99,50,000.
J Kumar Infraprojects was quoting at Rs 164.35, up Rs 4.55, or 2.85 percent on the BSE.
Cabinet clears formation of SPV for sale of surplus government land, buildings
The Cabinet has approved the formation of National Land Monetisation Corporation (NLMC) to handle the sale of surplus land and buildings of the government, its agencies, and Central Public Sector Enterprises (CPSEs).
NLMC will be a wholly owned central government entity with an initial authorised share capital of Rs 5,000 crore and paid-up share capital of Rs 150 crore, the government said in a statement on March 9.
The special purpose vehicle will be set up by the Department of Public Enterprise and the Ministry of Finance.
European Markets Updates
PNC Infratech declared lowest bidder for project worth Rs 864 crore
PNC Infratech Limited has been declared the L1 (lowest) bidder for a NHAI Project of ‘Improvement and up-gradation of 54.429 km long to 4–lane with Paved Shoulders, from km 174.641 to 229.070 of NH-731 in Hardoi District of Uttar Pradesh on Hybrid Annuity Mode, for a Bid Project Cost of Rs. 864.0 Crore. The project is to be constructed in 30 months and operated for 15 years post construction. The stock was trading at Rs 241.30, up Rs 1.70, or 0.71 percent. It has touched an intraday high of Rs 248.30 and an intraday low of Rs 239.10.
Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC
:
In current times of geo-political risks where markets have corrected sharply, yet the domestic investors have continued to add more allocation to equity. This is clearly change of attitude of investors towards this asset class and a definitely a positive change. At this stage, net domestic positive flows is supporting the massive outflows seen by FII’s on daily basis. A large part of the positive flows is also due to the strong SIP flow of 11k crore monthly which continues to grow strongly.
Market Update at 2 PM: Sensex is up 1,180.11 points or 2.21% at 54604.20, and the Nifty jumped 321.70 points or 2.01% at 16335.20.
Buzzing Stock
Zydus Lifesciences share price gained more than 5 percent intraday on March 9 after its US subsidiary Sentynl Therapeutics Inc acquired global rights for development and commercialisation of BridgeBio Pharma's Nulibry drug. "Sentynl Therapeutics Inc, a US based biopharmaceutical company announced the execution of an asset purchase agreement for the sale of BridgeBio's Nulibry (Fosdenopterin) for injection," says the company in its BSE filing.
Nulibry (Fosdenopterin) for injection is a substrate replacement therapy that provides an exogenous source of cPMP, which is converted to molybdopterin. Molybdopterin is then converted to molybdenum cofactor, which is needed for the activation of molybdenum-dependent enzymes, including sulfite oxidase, an enzyme that reduces levels of neurotoxic sulfites.
SAT declines to stay SEBI's observations against Dish TV, asks for reply by March 20
The Securities Appellate Tribunal (SAT), on March 9, declined to stay the prima facie observations by the Securities and Exchange Board of India (SEBI) against satellite service provider Dish TV's independent directors, board and compliance officer.
SAT said that, since the company's annual general meeting (AGM) voting results got declared, appeal on that ground had become infructuous and that it did not find any reason to stay such remarks. The tribunal also asked Dish TV to file its reply by March 20 in the matter against SEBI's March 7 order that directed Dish TV India Ltd to declare its annual general meeting (AGM) voting results, held on December 30.
Solara Active Pharma appoints S Hariharan as new CFO
Solara Active Pharma has appointed Mr. S. Hariharan as Chief Financial Officer of the company. And approved resignation of Subhash Chand Anand as Executive Director & Chief Financial Officer (ED & CFO) and Director of the company.
Solara Active Pharma Sciences was quoting at Rs 701.20, up Rs 2.10, or 0.30 percent on the BSE.
HUL appoints Madhusudhan Rao and Deepak Subramanian as executive director
Hindustan Unilever announced appointments of Madhusudhan Rao as Executive Director, Beauty & Wellbeing and Personal Care, HUL and
Deepak Subramanian, will be appointed as Executive Director, Home Care, HUL.
Hindustan Unilever was quoting at Rs 1,991.45, up Rs 43.75, or 2.25 percent on the BSE.
Market at 1 PM
Benchmark indices extended the intraday gains and trading at day's high with Nifty around 16300.
The Sensex was up 1,028.79 points or 1.93% at 54452.88, and the Nifty was up 279.60 points or 1.75% at 16293.10. About 2471 shares have advanced, 621 shares declined, and 87 shares are unchanged.
Jefferies view on Adani Ports
Research firm Jefferies has remained positive on Adani Ports and Special Economic Zone with target at Rs 850 per share.
The coal prices have risen 102 percent year-to-date due to Russia-Ukraine crisis.
Research firm lowered FY22-25 volume by 7-10 percent & EPS by 3-5 parent for the company.
The EPS should rise nearly 2x in FY22-25e with Mundra Ports’ success in market share gain, it added.
Adani Ports and Special Economic Zone was quoting at Rs 707.30, up Rs 19.00, or 2.76 percent on the BSE.
Care Ratings revises credit rating of PNC Infratech subsidiary
Care Ratings has revised credit rating on the bank facilities of PNC Infratech subsidiary, PNC Kanpur Highways:
PNC Infratech was quoting at Rs 242.45, up Rs 2.85, or 1.19 percent.
Smallcap World Fund Inc sells 6,10,131 equity shares of GR Infraprojects
GR Infraprojects: Smallcap World Fund Inc sold 6,10,131 equity shares in the company via open market transactions. These shares were sold at an average price of Rs 1,280 per share.
G R Infraprojects was quoting at Rs 1,355.20, up Rs 35.30, or 2.67 percent on the BSE.
BSE Metal index shed 1 percent dragged by the JSW Steel, Tata Steel, Hindustan Zinc
Market at 12 PM
Benchmark indices extended the gains and trading at day's high with Nifty around 16200 led by the auto, FMCG, pharma, realty names.
The Sensex was up 692.76 points or 1.30% at 54116.85, and the Nifty was up 180.70 points or 1.13% at 16194.20. About 2361 shares have advanced, 676 shares declined, and 106 shares are unchanged.
February Mutual Fund Data:
The net equity inflow stood at Rs 19,645 crore against Rs 14,552.3 crore inflow and liquid fund inflow was at Rs 40,273 crore versus Rs 14,398 crore outflow, MoM.
The hybrid fund inflow was at Rs 3,177 crore versus Rs 6,230 crore inflow and ETF inflow stood at Rs 10,791 crore against Rs 4,009 crore inflow, MoM.
Cyient partners with iBASEt to drive business growth
Cyient announced a new strategic partnership with iBASEt. The partnership brings together two best-of-breed partners capable of designing and implementing world-class solutions, purpose-built to overcome the unique challenges discrete manufacturers face today.
Cyient was quoting at Rs 920.75, up Rs 6.35, or 0.69 percent on the BSE.
Coal India's quantity offered under single-window e-auction booked fully
Coal India's (CIL) first ever offer of nearly 5.2 Lakh Tonnes (LTs) of coal under the recently revamped single window e-auction was met with encouraging response from coal consumers with 100% of the offered quantity getting booked.
After the merger of earlier multiple auction windows into a solitary outlet, CIL conducted e-auction in two of its subsidiaries on 3rd March 2022, it added.
The entire quantity of 3.2 LTs offered by Northern Coalfields Limited, under the newly structured auction window, was fully booked.
Similarly, a little over 1.98 LTs placed under the sole e-hammer by Eastern Coalfields Limited got totally ordered, company added.
Coal India was quoting at Rs 188.60, down Rs 0.45, or 0.24 percent on the BSE.
L&T Construction wins significant order from Delhi Metro Rail Corporation
The Heavy Civil Infrastructure business vertical of L&T Construction has won a significant order from the prestigious Delhi Metro Rail Corporation Limited (DMRC), to design and construct the Underground Metro Project of Phase-IV of Delhi MRTS.
Larsen & Toubro was quoting at Rs 1,671.25, up Rs 12.15, or 0.73 percent on the BSE.
BSE Midcap index added 1 percent supported by the ZEE Entertainment Enterprises, Trent, JSW Energy
Likhita Chepa, Senior Research Analyst, Capitalvia Global Research:
Strength in financial and information technology companies helped Indian markets make a comeback on Tuesday, snapping a four-day losing trend. Today, markets opened slightly higher, with advances in most other Asian markets, however oil prices have continued to rise as a result of the United States' ban on Russian oil imports in response to Moscow's invasion of Ukraine.
Investors will certainly pay attention to exit polls before the state election results, which are only a day away. Traders may be concerned after Union Finance Minister Nirmala Sitharaman expressed concern about rising crude prices as a result of the Ukraine conflict and said the central government is searching for alternate sources.
Metal stocks will be in the spotlight, with a private report claiming that steel prices will continue to rise due to strong demand and the supply chain being disrupted by the Ukraine-Russia conflict. The US markets ended lower on Tuesday as President Joe Biden officially announced a U.S. ban on Russian imports of oil and energy. Asian markets are trading mostly in green on Wednesday.
Indusind Bank cites technical glitch behind loan disbursed by BFIL
Indusind Bank on March 8 reported to exchanges that the technical glitch leading to disbursement of loans without recording of client consent at Bharat Financial Inclusion Ltd was a result of IT change management and process gap.
An independent review by Deloitte was initiated by the lender after allegations made by anonymous individuals related to its wholly owned subsidiary and business correspondent for microfinance loans, Bharat Financial Inclusion Ltd (BFIL).
IndusInd Bank was quoting at Rs 843.80, up Rs 3.50, or 0.42 percent.
PSP Projects emerges as lowest bidder for project in Ahmedabad
The company has emerged as the Lowest Bidder (L1 bidder) for project "Construction of Sports Complex" at Ahmedabad, Gujarat with a bid value of Rs 563.99 crore. The stock was trading at Rs 512.90, up Rs 18.80, or 3.80 percent. It has touched an intraday high of Rs 521 and an intraday low of Rs 498.
Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers
:
Spot gold surged to as high as $2,070 an ounce on Monday, just 6 dollars shy of its record peak hit in August 2020 as geopolitical and economic uncertainties stemming from the Russia-Ukraine war lifted demand for the safe-haven metal. In the latest developments, the US announced a ban on imports of Russian oil, a move that threatened supply chains and heaped further inflationary pressure on economies worldwide. Eyes are on Fed meeting where Powell will be under pressure to raise rates by 50 basis points instead of a quarter point. MCX Gold has rallied by 14.3% year to date in tandem with the international trends.
Buzzing Stock
Sun Pharmaceutical Industries share price jumped over three percent in the morning session on March 9 after the firm said a step-down US subsidiary has acquired companies of Galderma in the US, Japan and Canada. "Taro Pharmaceuticals USA, one of the wholly owned subsidiaries of our Taro Pharmaceutical Industries, has agreed to acquire all of the outstanding capital stock of Galderma Holdings Inc (incorporated in Delaware); Proactiv YK (incorporated in Japan); The Proactiv Company Corporation (incorporated in Canada); and other assets of The Proactiv Company Sari, used in the business of developing, manufacturing, marketing, selling and distributing products sold under the Proactiv, Restorative Elements and In Defense of Skin brands (the "Alchemee Business")," Sun Pharmaceutical said in an exchange filing.
Market Update at 11 AM
Sensex is up 558.55 points or 1.05% at 53982.64, and the Nifty jumped 149 points or 0.93% at 16162.50.
TVS Motor board to consider interim dividend on March 18
A meeting of the board of directors of TVS Motor Company is being convened on Friday, the 18th March 2022 to consider and declare interim dividend, if any, to the shareholders of the company for the year ending 31st March 2022, company said in its release.
The record date for the purpose of interim dividend will be 28th March 2022, it added.
TVS Motor Company was quoting at Rs 541.85, up Rs 7.05, or 1.32 percent on the BSE.
BSE Smallcap index gained 1 percent led by the Take Solutions, IOL Chemicals & Pharmaceuticals, TTK Healthcare
Morgan Stanley view on Bajaj Electricals
Broking house Morgan Stanley has downgraded the Bajaj Electricals to equal-weight from overweight and cut target to Rs 1,223 from Rs 1,340 per share.
The company's 2.0 is a turnaround FMEG story, but there are near-term headwinds.
THe weak rural sentiment, elevated prices pose risks to near-term earnings.
Bajaj Electricals was quoting at Rs 1,068.25, down Rs 44.40, or 3.99 percent on the BSE.
Amit Pabari, MD at CR Forex Advisors:
The likely range for USDINR pair for the day is 76.75 to 77.20. The US DXY is hovering at the 99 mark and equities have halted their downward move in the Asian market following a sigh of relief after Ukraine said they are no longer insisting on NATO membership and they are ready to negotiate with the Russian federation on key points with clear & specific legally binding set of guarantees for its security.
As expected, the US announced sanctions on Russian oil and UK too will phase out the same plan by end of the year. But implication wise oil prices remained marginally higher as a truce between two war-led countries engulfed other news. Going ahead, all eyes will be on tomorrow’s US CPI data and ECB monetary policy.
Rupee Opens:
Indian rupee opened 9 paise higher at 76.82 per dollar on Wednesday against previous close of 76.91.
The rupee is expected to appreciate today due to a softer dollar. Moreover, expectations of RBI intervention in forex markets may continue to support the domestic currency. However, higher FII funds outflows from domestic markets may weigh on the rupee. USDINR (March) is expected to move towards 76.75, said ICICI Direct.
MEP Infrastructure restrains from bidding for any projects:
MEP Infrastructure Developers has received an order dated March 7, 2022 from Hon'ble High Court of Delhi, whereby it has stayed the order dated October 4, 2021 issued by South Delhi Municipal Corporation (SDMC) which had restrained our company from bidding for any projects either itself or as a part of a joint venture for a period of five years.
MEP Infrastructure Developers was quoting at Rs 20.80, up Rs 0.15, or 0.73 percent on the BSE.
Gold flat as firmer dollar, yields offset Ukraine worries:
Gold held ground on Wednesday after rising to a 19-month peak in the last session, as a stronger dollar and higher Treasury yields countered support from safe-haven demand stemming from the Ukraine crisis.
Spot gold was flat at $2,053.99 per ounce by 0312 GMT, after climbing to $2,069.89 in the previous session, a whisker away from its record $2,072.49 scaled in August 2020.
U.S. gold futures rose 0.9% to $2,061.40.
