Stock Market Highlights: Sensex surges 1,128 points, Nifty ends above 14,800 led by metals, IT, pharma stocks

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments

The Nifty has successfully closed past its resistance zone of 14,700-14,800. However, I would be more comfortable if we can get past 14,950 on a closing basis. That would trigger a rally up to levels closer to 15,300. Until we do not get past 14,950, there is always a chance we take a U-turn from these levels and head southwards to 14,400. Extreme caution is advised at the current levels.

Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS

Indian markets have extended their recovery for a second session, boosted by strength across the board. Global cues have been supportive of the rally since Friday, with both US and European markets advancing to life-time highs. Despite the recovery over the past two sessions, Indian markets have been under-performing their global peers for the past few days. For the short-term, in spite of the generally supportive global cues, we could witness bouts of volatility in the domestic markets.

Strengthening dollar and rising US yields, in particular, remain the key forces to watch out for as they could act as headwinds to the short-term recovery. Hence, one needs to trade cautiously and take a sector-specific stance.

Technically, last week’s high of 14,878 is the immediate hurdle for Nifty. If the index surpasses this level, the recovery could extend towards 14,985-15,060. Meanwhile, today’s low of 14,617 now becomes the immediate support to watch out for, break below which is likely to resume the downside pressure on the index.

Market At Close

– Market Posts Biggest 1-day Gains In Last 2 Months; Frontline Indices Up 2% Each

– Sensex & Nifty Closes At A 2-Wk Highs With Sensex Rising Above 50,100 & Nifty 14,800

– Majority Of Sectoral Indices Rise With Metals & IT Gaining The Most

– 45 Of 50 Nifty Stocks End Higher; UPL, Tata Steel, JSW Steel Top Gainers

– Nifty Gains 338 Points To 14,845 & Sensex 1,128 Points To 50,137

– Nifty Bank Rises 557 Points To 33,875 & Midcap Index 395 Points To 23,609

– Steel Shrs Surge On Brokerages’ Positive Stance; Tata Steel, JSW Up 4-5%

– Nazara Tech Fails To Hold Big Listing Gains, Closes At Lower Circuit

– Market Breadth Neutral; Advance-decline Ratio At 1:1

– BSE Companies Gains Market Cap Of More Than Rs 3.5 Lk Cr Today

Closing Bell | The Indian benchmark equity indices ended more than 2 percent higher Tuesday led by strong gains in IT, metals and pharma stocks. The Sensex rallied 1,128.08 points, or 2.30 percent to 50,136.58, while the Nifty surged 337.80 points, or 2.33 percent to close at 14,845.10. Broader markets supported the rally with smallcap and midcap indices ending over 1 percent higher each.

Barring Nifty Realty, all the sectoral indices ended in the green with Nifty IT ralling over 3 percent followed by Nifty Metal, Nifty Pharma and Nifty FMCG gaining over 2 percent each. On the Nifty50, UPL, JSW Steel, Shree Cements, Tata Steel and Wirpo were the top gainers, while Hindalco Industries, Axis Bank, Mahindra & Mahindra and Bharti Airtel were the only losers.

CLSA gives ‘buy’ rating for Tata Steel, ‘outperform’ for JSW Steel

Brokerage firm CLSA maintained its ‘buy’ rating for Tata Steel and upgraded JSW Steel to ‘outperform’. The brokerage firm expects a further upside in steel stocks on the backs of favourable risk-reward ratio, despite its significant outperformance over the last year. CLSA has set a price target of Rs 950 for Tata Steel and Rs 490 for JSW Steel.

CLSA expects “upward revisions in consensus as current estimates imply a Rs 10,000-12,000 per tonne correction in steel prices versus spot. As the domestic prices are trading at a 10 percent discount to import parity, such a sharp correction is unlikely unless demand drops sharply (not our base case)”. Read more.

Potential sales value for Kalyan Project is seen at Rs 600 crore: Mahindra Lifespace

Mahindra Lifespace Developers has added a new residential project in Kalyan near Mumbai. The company has entered into an agreement for sale for 10.3 acres of land. In an interview with CNBC-TV18, Arvind Subramanian, MD and CEO of Mahindra Lifespaces said that the project could have about Rs 600 crore of potential sales value. Overall, the company will be spending close to Rs 400 crore between land and construction cost for this project, he added.

“This recent land acquisition happens to be in very closed proximity to an extremely successful project that we launched in November of 2019. Kalyan project will have about 7 lakh square feet of carpet area, it is a residential project with some convenience retail in it and we expect to be able to launch this project within the next financial year,” Subramanian said in the interview. He expects this project to be complete in 4-4.50 years of launching. Read more.

Oil slips as Suez opens, focus turns to OPEC+ output cuts

Oil prices fell on Tuesday as the Suez Canal reopened to traffic, while focus turned to an OPEC+ meeting this week that is likely to agree an extension to supply curbs amid disappointing demand prospects, Reuters reported. Brent crude was down 50 cents, or 0.8 percent, at $64.48 a barrel. US oil was off by 58 cents, or 0.9 percent, at $60.98 barrel. With concerns about a shortage of physical supplies abating, the market is turning its focus to Thursday’s meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, collectively known as OPEC+.

Constructive on markets; positive on financials, IT services, healthcare: Bernstein’s Venugopal Garre

Venugopal Garre, Managing Director at Bernstein is constructive on markets. “We are okay with the consolidation phase and at the same time we will be constructive on the markets from a 12-month view,” he said in an interview with CNBC-TV18. Once these COVID issues, which is becoming a challenge will subside you will see a broader normal economy coming back. Supply side also will get enough time to respond to the changes, he added. From a sectoral standpoint, he is positive on financials, industrials. Watch here.

Market Update | The Indian benchmark equity indices rallied more than 2 percent Tuesday afternoon with the Sensex reclaiming 50,000 level and the Nifty trading above 14,850 boosted by robust gains in IT, metals, pharma and financial stocks. Broader markets, smallcap and midcap indices traded over 0.7 percent higher.

FTSE puts India on watchlist for possible inclusion in global debt index

In a move that may usher inflow of billions of dollars into rupee securities, FTSE Russell, the world’s leading provider of index benchmark, has placed the Indian government bonds on the watchlist for possible inclusion in one of its major global debt indexes, as per reports. This was announced during the FTSE’s semi-annual country classification review, released on Monday. Read more.

Market Watch: Ashish Kyal of Waves Strategy Advisors

First trade is going to buy on Cummins India because that stock has given a very strong positive move on the upside. One can initiate buy on Cummins India keeping a stop loss of Rs 870 and expecting a target of Rs 966 over short term.

The next buy is going to be on Gujarat Gas. One can clearly see again Gujarat Gas formed a flag kind of a pattern and now giving a positive attempt, the overall sector is supporting so there can be a possibility this stock can start to go up, expect a target of Rs 567 and one can maintain a stop loss of Rs 510 over here.

HDFC Bank’s internet banking services suffer outage

India’s largest private lender, HDFC Bank’s internet banking services suffered an outage again on Tuesday as some customers reported issues in accessing its Net Banking and Mobile Banking services. The bank is currently working on resolving the issue. “Some customers are facing intermittent issues accessing our NetBanking/MobileBanking App. We are looking into it on priority for resolution. We apologize for the inconvenience and request you to try again after sometime,” HDFC Bank said in a statement.

Larsen & Toubro | L&T Construction has won orders in the range of Rs 1,000-2,500 crore for its various businesses.

Asia shares higher as investors overlook US hedge fund default

Asian share markets strengthened Tuesday as investors remained focused on the global vaccination program and shook off worries about a hedge fund default that hit international banking stocks overnight, said a Reuters report. European stocks look set to open higher with Euro Stoxx futures up 0.35 percent and Britain’s FTSE futures 0.33 percent higher. Sentiment among Asian investors was mixed early but turned positive later in the session with most of the region’s major markets trading higher. The MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.6 percent higher, while mainland China’s CSI300 index rose 1 percent.

Buzzing | Tata Steel, JSW Steel shares at 52-week high as analysts raise estimates on better realisations

Shares of steel companies rallied on Tuesday with the Nifty Metal index gaining over 3 percent as analysts expect a further rise in steel prices going ahead. The stock price of Tata Steel and JSW Steel rallied over 5 percent to hit a fresh 52-week high, while SAIL gained more than 4 percent. Brokerage firm CLSA said after the significant outperformance of steel stocks over the past year, it saw a further upside in the steel stocks as risk-reward remains favourable. Read more.

Tata Power Company | The company has received a Letter of Award from Gujarat Urja Vikas Nigam Ltd (GUVNL) to develop a 60 MW solar project in the state of Gujarat. The energy will be supplied to GUVNL under a Power Purchase Agreement (PPA), valid for a period of 25 years from scheduled commercial operation date, the company said in a regulatory filing.

Dilip Buildcon | The company has received a letter of acceptance (LoA) from the National Highways Authority of India (NHAI) for four laning of Sannur to Bikarnakette section of NH-169 under Bharatmala Pariyojana on a hybrid annuity basis in the state of Karnataka. The project cost is Rs 1,137 crore and to be completed in 24 months.

Goldiam International | The company has received confirmed export orders worth Rs 80 crore from its international clients for the manufacturing of diamond-studded designed gold jewellery. The aforesaid order will be delivered within the coming 3 months.

Wipro appoints Subha Tatavarti as Chief Technology Officer

Indian IT services giant Wipro appointed Subha Tatavarti as the new Chief Technology Officer, sources told CNBC-TV18 on Tuesday. Tatavarti was previously with Walmart and PayPal.

India petitioned Dutch Court of Appeal to set aside Arbitration Award: Cairn Energy

Cairn Energy Plc says it got notice of the Indian government’s petition to the Dutch Court of Appeal to set aside the arbitration award. On March 24, CNBC-TV18 had reported that India has filed an appeal against the arbitration award on the grounds of the sovereign right to tax.

Gold rate today: Yellow metal trades lower as strong dollar weighs

Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Tuesday following weakness in international spot prices amid strength in US dollar, analysts said. At 10:45 am, gold futures for June delivery fell 0.35 percent to Rs 44,542 per 10 grams as against the previous close of Rs 44,698 and the opening price of Rs 44,590 on the MCX. Silver futures traded 0.46 percent lower at Rs 63,880 per kg. The prices opened at Rs 63,976 as compared to the previous close of Rs 64,174 per kg. More here

Adani Transmission shares jump 6% to hit new high on acquisition of Warora-Kurnool Transmission

Shares of Adani Transmission rose over 6 percent to hit a new high on Tuesday after the firm acquired Warora-Kurnool Transmission Limited (WKTL) from Essel Infraprojects for Rs 3,370 crore. The stock rose as much as 6.3 percent to its all-time high of Rs 924.40 per share on the BSE. In the past three months, the stock of Adani Transmission has rallied 113 percent as against a 5 percent rise in Sensex. The acquisition is expected to be completed in one month, subject to all necessary regulatory approvals and other consents. As per the agreement, WKTL will develop, operate, and maintain transmission lines aggregating to around 1,750 ckt km.