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Stock markets open on positive note: Sensex up over 200 points, Nifty nears 17,300-mark

FPJ Web Desk | Updated on: Tuesday, March 29, 2022, 09:22 AM IST

Among major gainers at the opening bell were SBI Life Insurance, UltraTech Cement, Maruti Suzuki, HDFC Life and HDFC. Among laggards were ONGC, Coal India, Dr Reddys Labs, Eicher Motors and JSW Steel./File photo | File photo
Among major gainers at the opening bell were SBI Life Insurance, UltraTech Cement, Maruti Suzuki, HDFC Life and HDFC. Among laggards were ONGC, Coal India, Dr Reddys Labs, Eicher Motors and JSW Steel./File photo | File photo
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The benchmark indices opened in the green amid positive global cues. At 09:16 AM, the Sensex was up 209.38 points or 0.36 percent at 57802.87. The broader Nifty was up 63 points or 0.37 percent at 17,285. About 1,378 shares have advanced, 517 shares declined, and 87 shares are unchanged.

Among major gainers at the opening bell were SBI Life Insurance, UltraTech Cement, Maruti Suzuki, HDFC Life and HDFC. Among laggards were ONGC, Coal India, Dr Reddys Labs, Eicher Motors and JSW Steel.

On Monday (March 28), at close, the Sensex was up 231.29 points or 0.40 percent at 57,593.49. The broader Nifty was up 69 points or 0.40 percent at 17,222.

Asian stocks up

Asian stocks rose Tuesday after a climb in U.S. equities, a slump in crude oil and the prospect of more cease-fire talks between Russia and Ukraine helped to support investor sentiment.

Japan's Nikkei gained 0.91 percent in early trade, while MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.64 percent. China's CSI300 fell 0.52 percent, while in the offshore market, Hong Kong's Hang Seng index advanced 0.54 percent.

Australia S&P/ASX 200 slid 0.8 percent in early trading, despite stronger than expected retail sales data. Yields on U.S. benchmark 10-year treasury notes were steady at 2.4696 percent, little changed on the day due to a pause in the sharp sell-off seen in recent days.

US stock indices close higher

All three major stock indexes ended higher despite earlier losses on Monday, with Dow industrials and the S&P 500 finishing up for a third straight trading day, as investors assessed the prospect that Russia might be willing to accept less from Ukraine in ceasefire talks than previously expected.

SCI's gauge of stocks across the globe gained 0.39 percent. The Nasdaq Composite jumped 1.31 percent, the Dow Jones Industrial Average rose 0.27 percent and the S&P 500 climbed 0.71 percent.

Traders were also looking at news from the world’s Number 2 economy, China, which locked down its financial capital, Shanghai, in response to rising COVID-19 cases. West Texas Intermediate crude for May delivery declined by $7.94, or about 7 percent to settle at $105.96 a barrel on the New York Mercantile Exchange on related demand worries.

Bond trading remained volatile, with the yield on the US 10-year Treasury temporarily moving further above 2.50 percent before pulling back as buyers returned to government debt. The global bond market is heading for its worst returns since the Marshall Plan was implemented after World War II. The 5-year Treasury yield briefly traded above the rate on the 30-year Treasury bond, temporarily inverting that measure of the curve.

Sebi directs Ruchi Soya to allow FPO investors to withdraw bids

SEBI on Monday asked bankers of Baba Ramdev-led Patanjali group's Ruchi Soya to give an option to investors in its ongoing follow-on public offer of shares to withdraw their bids while also cautioning them about ''circulation of unsolicited SMS'' about the share sale.

The development assumes significance as the share sale was already oversubscribed 3.6 times and withdrawal of bids can have a bearing on the final numbers.

According to a regulatory filing, Ruchi Soya Industries Ltd informed the regulator and stock exchanges that it has come across some messages on social media ''speculating'' about investment opportunities in the FPO and the company shares being available at discount to the market price.

FIIs net sellers

Foreign institutional investors (FIIs) were net sellers in the capital market, as they sold shares worth Rs 1,507.37 crore on Friday, according to the stock exchange data.

''Even though the Ukraine war and the consequent crude spike impacted markets initially, the war is not impacting markets much now. The major headwinds for markets in 2022 will continue to be the high US inflation and Fed tightening,'' said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Crude oil slumps

On Monday, crude oil slumped 7 percent in international market. The drop followed news that China began its most extensive coronavirus lockdown in two years to conduct mass testing and control a growing outbreak in Shanghai. That could put a dent in global demand for energy. Crude oil prices also slipped amid hope of progress in peace talks between Russia-Ukraine. Market is also eyeing OPEC+ meeting outcomes this week as OPEC and its allies are scheduled to meet on Thursday to discuss on raising outputs. Before OPEC+ meeting Saudi Arabia Hikes Oil Prices Despite Record Discounts for Russian Crude.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, "We expect crude oil prices to remain volatile in this week. Crude oil is having support at $101.70–98.40 and resistance is at $109.00–112.80, In INR terms crude oil has support at Rs7,955-7,810; while resistance is at Rs 8,370–8,550".

Fuel prices hiked again, seventh increase in a week

Petrol price on Tuesday crossed Rs 100 a litre mark in Delhi after rates were hiked by 80 paise a litre and 70 paise in case of diesel, taking the total increase in rates in one week to Rs 4.80 per litre.

Petrol in Delhi will now cost Rs 100.21 per litre as against Rs 99.41 previously while diesel rates have gone up from Rs 90.77 per litre to Rs 91.47, according to a price notification of state fuel retailers.

In Mumbai, petrol is being retailed at Rs 115.04 per litre and diesel now costs Rs 99.25 a litre. In Kolkata, petrol is being retailed at Rs 109.68 while diesel costs Rs 94.62 per litre. In Chennai, petrol is available at Rs 105.94 and diesel for Rs 96.

Bullion outlook

On Monday, Gold and silver showed heavy profit taking at the starting of week after the U.S. dollar index is higher early today and the benchmark US 10-year Treasury note is presently yielding 2.452 percent, after overnight rising to the highest in almost three years. The market is now factoring in a more aggressive pace for the Federal Reserve to raise U.S. interest rates, including 50 basis points at the May FOMC meeting.

Technically, gold were bulls have the overall near-term technical advantage but trading has turned sideways and choppy again. Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, gold has support at $1912-1900, while resistance at $1940-1952 per troy ounce. Silver has support at $24.80- 24.64, while resistance is at $25.25-25.40. In INR terms gold has support at Rs51,372–51,050, while resistance is at Rs51,680–51,840. Silver has support at Rs 67,680- 67,310 while resistance is at Rs68,450–68,780.

Currency outlook

USDINR 29March futures contract traded in a tight range on Monday. On the daily technical chart a pair is unable to sustain above its resistance level of 76.3500 and slipped again. MACD is showing negative divergence on the daily technical chart but RSI is fetching above 50 levels. Rahul Kalantri, VP Commodities, Mehta Equities Ltd., said, as per the daily technical chart, we observed that a pair is facing steep resistance around 76.3500 levels. Looking at the technical set-up, a pair is in indecisive range from the last few trading sessions. We expect a pair to continue to trade in the range of 75.9500-76.5500 and either side breakout of the range will give further directions, Kalantri said.

Veranda Learning Solutions IPO opens today

Education company Veranda Learning Solutions Ltd has set the price band for its initial public offering (IPO) at Rs 130 to Rs 137 per equity share of face value of Rs 10 each.

The issue will open on March 29 and close on March 31. Investors can submit bids for a minimum of 100 shares and in multiples of 100 thereafter. Almost 75percent of the issue is reserved for qualified institutional buyers (QIB), 10 percent for retail buyers, and 15 percent for the non-institutional category.

Stocks under F&O ban

Three stocks – Vodafone Idea, PVR, and Sun TV Network – are under the F&O ban.

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Published on: Tuesday, March 29, 2022, 09:22 AM IST