The benchmark indices opened with strong gains on Wednesday, extending the previous day’s rally amid firm global cues. However, after clocking decent gains at open, benchmark indices erased gains and were trading marginally above the flat line. Sensex is up 215.85 points or 0.37 per cent at 58205.15, and the Nifty added 67 points or 0.39 per cent at 17382.50. Dr Reddy’s Labs was the top Sensex gainer, up over 3 per cent, followed by Tech M, IndusInd Bank, Bajaj Finance, and ITC. On the downside, Bharti Airtel (down 2 per cent), Maruti Suzuki, Kotak Bank, Asian Paints, and HDFC were the top laggards.
In the broader market, the BSE MidCap and SmallCap indices were up 0.5 per cent each. Sectorally, the Nifty Pharma index was the top gainer, up 1.4 per cent. The Nifty Auto index was the worst hit, down 0.5 per cent.
Dr. V K Vijayakumar, chief investment strategist at Geojit Financial Services, said: “There are two significant trends in the market now. One, 17000 Nifty has now become a strong technical support for the market. The sharp bounce from the 17000 levels yesterday indicates that this is a strong support level now. Two, there is heavy delivery-based buying in high-quality stocks like TCS, Infosys, ITC and select financials. This indicates the return of risk-on in the market.”
“However, there are major global concerns too that might impact equity markets. The US 10-year yield is now at 2.42 per cent. There is a concern that rising bond yields and a hawkish Fed might push the US economy into recession. There is logic in the argument that markets have not discounted the negative impact of the war, rising inflation and hawkish central banks. But bull markets are known to climb many walls of worries,” said Vijayakumar.
Paytm Shares Rise
Share price of One 97 Communications, the parent firm of Paytm, rose over 3 percent in the early trade on March 23 after the company clarifies on the BSE query. The BSE on March 22 sought a clarification from One 97 Communications, over the sharp fall in its share prices. “Exchange has sought clarification from One 97 Communications on March 22, 2022 with reference to significant movement in price in order to ensure that investors have latest relevant information about the company and to inform the market so that the interest of the investors is safeguarded,” the BSE said.
Rupee Opens 19 Paise Higher
The Indian rupee opened 19 paise higher at 75.99 per dollar on Wednesday against the previous close of 76.18. The rupee is expected to appreciate today amid a soft dollar and rise in risk appetite in the global markets. Meanwhile, investors will remain vigilant ahead of US Federal Reserve Chairman Jerome Powell’s speech, said ICICI Direct. Additionally, capital outflows due to sustained selling by FPI’s will hurt the rupee. Market participants fear that support for the European ban on Russian oil is growing inside the bloc, raising the possibility of volatility in crude oil prices, it added.
Gold Prices Fall
Gold prices fell on Wednesday as U.S. Treasury yields gained after Federal Reserve officials insisted on sharper interest-rate hikes to combat inflation, although concerns over the Ukraine crisis slowed bullion’s decline. Spot gold was down 0.2 per cent at $1,918.29 per ounce by 0130 GMT. U.S. gold futures also slipped 0.2 per cent to $1,918.40.
Global Cues
US stocks ended higher on Tuesday, led by a 2 per cent gain in the Nasdaq, as shares of technology and other big growth names rebounded from recent losses and Nike rose after it reported upbeat results. The Dow Jones Industrial Average rose 254.47 points, or 0.74 per cent, to 34,807.46, the S&P 500 gained 50.43 points, or 1.13 per cent, to 4,511.61 and the Nasdaq Composite added 270.36 points, or 1.95 per cent, to 14,108.82.
Tokyo stocks opened higher on Wednesday, tracking gains on Wall Street as investors monitor developments in Ukraine. The benchmark Nikkei 225 index was up 1.49 per cent or 405.02 points at 27,629.13 in early trade, while the broader Topix index advanced 1.22 per cent or 23.60 points to 1,957.34. The war in Ukraine remains a key market-moving factor, and the country’s leader Volodymyr Zelensky will give an online address to Japan’s parliament on Wednesday evening.
Hong Kong stocks began Wednesday with more gains following a strong performance on Wall Street, with tech firms leading the advances. The Hang Seng Index added 0.91 per cent, or 199.51 points, to 22,088.79. The Shanghai Composite Index gained 0.15 per cent, or 4.93 points, to 3,264.79, while the Shenzhen Composite Index on China’s second exchange rose 0.28 per cent, or 6.11 points, to 2,157.79.
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