Market LIVE: Sensex jumps 250 pts, Nifty below 17,300; Auto, pharma gain

Stock Market Updates LIVE: Benchmark Indian equity indices opened higher on Tuesday. The Sensex rose 0.46% to 57,860.32 at open, while NSE Nifty 50 index jumped 0.43% to 17,296.75

Indian indices witnessed a positive start on Tuesday amid positive global cues. Volatility was seen in the markets on Monday due to hopes of progress in Russia-Ukraine ceasefire talks and dip in oil prices. The trend is likely to continue as uncertainty around the commodity prices remain. The oil brought some good news as it extended its slide amid concerns that China's Covid-19 restrictions might sap demand. The investors are likely to be cautious going forward as earnings downgrades are on the way. However, the Wall Street indices advanced after Monday's session, shedding worries over rising interest rates. In Asia, shares in Japan, South Korea, Shanghai, Hong Kong, and Australia were all trading in the green in early trade on Tuesday. 

Technical & derivatives report by Sameet Chavan, chief analyst-technical and derivatives, Angel One

The last expiry week of the FY22 started on a timid note taking cues from the mixed global bourses. The benchmark index Nifty50 tumbled as soon the market started towards the psychological support of the 17000 mark, from where a smart recovery poured in to pare down the initial losses. The index concluded the session positively with gains of 0.40 percent and settled a tad above the 17200 level.

The psychological mark of 17000 once again proved to be the sacrosanct support zone, which the bulls saw as an opportunity and pounced to witness a strong recovery among the various bourses. Though the index has been in a congestion phase for quite some time, the slender range-bound movement is evident. But as we have alluded to in the last few commentaries, that undertone remains bullish until the 17000 mark is being sustained in the market, and any dip towards the same could be seen as an opportunity for the bulls. While on the contrary, the immediate hurdle is placed around the 17350-17400 zone, followed by the sturdy wall of 17500 for the time being.

The broad-based recovery has been observed across the bourses on the sectoral front, wherein the significant benefactors that boosted the positive sentiments were the BFSI and Auto spaces. Looking at the recent development, traders are advised to keep following a stock-centric approach for obtaining better trading opportunities.

Angel One top picks: Jubilant Ingrev, Rating: BUY

We expect the company to post 18.3%/24.3%/33.9% CAGR growth in revenues/EBIDTA/PAT over FY21-FY23 driven by strong growth in Life Science chemical and specialty chemical business. At current levels the stock is trading at P/E multiple of 15.8xFY23 EPS which is at a significant discount to other chemical companies. Therefore we believe that there is value in the stock at current levels and hence rate it a BUYwith a price target of Rs. 837.

Angel One top picks: HDFC Bank, Rating-BUY

Given best in class asset quality and expected rebound in growth from Q2FY22 we are positive on the bank given reasonable valuations at 3.0xFY23 adjusted book which is at a discount to historical averages. We value the stock at3.7xFY23 adjusted book and arrive at a target price of Rs. 1859.

This IT stock could rally over 30% as Jefferies sees upside

In its recent meeting, Newgen Software's CEO and CFO highlighted that the Middle East and APAC regions are doing well but the US is lagging due to high employee attrition at clients, which is delaying decision-making, highlighted Jefferies in a note.

Multibagger stock: Why Tata Elxsi share price is skyrocketing — explained

Tata Elxsi share price has scaled to its life-time high on two successive sessions. The multibagger IT stock that has given 235 per cent return to its shareholders in last one year, ascended to a new peak on Friday and the rally continued on Monday leading to a new high of ₹9,160 apiece levels on NSE. In last two trade sessions, this multibagger stock has surged to the tune of 18 per cent (from ₹7610 to ₹9010 apiece levels on NSE).

PVR, Vodafone Idea among stocks under F&O ban on NSE today

A total of three stocks have been put under the ban for trade on Tuesday, March 26, 2022 under the futures and options (F&O) segment by the National Stock Exchange (NSE). These securities have been put on ban under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE.

Veranda Learning IPO opens today. Subscription status and other details in 10 points

Veranda Learning IPO (Initial Public Offering) is opening for subscription today and it will remain open for bidding till 31st March 2022. Price band of the book built issue of face value ₹10 per equity share has been fixed at ₹130 to ₹137 per share. The coaching service company plans to raise ₹200 crore from its public issue. According to market observers, Veranda Learning IPO GMP (grey market premium) is not available as the stock is yet to make its debut in the grey market.

Bitcoin above $47,000, ether, Shiba Inu surge; dogecoin plunges. Check cryptocurrency prices today

In cryptocurrencies, Bitcoin's rally continued as the digital token was trading at $47,550, up over a per cent. The world's largest and most popular cryptocurrency is up about 3% in 2022 (year-to-date or YTD) so far. It is about 30% far away from its record high of near $69,000 it had hit in November last year.

Tesla adds $84 billion to valuation in a day on stock-split signal

Tesla added about $84 billion to its stock-market value on Monday, more than Ford Motor Co.’s entire market capitalization, after the electric-vehicle maker said it is planning a second stock split in about two years.

Asian shares gain as BOJ defends ultra-easy stance, oil eases on Shanghai lockdown

Japanese shares led gains in Asian stocks on Tuesday as the Bank of Japan defended its ultra-easy stance, while oil slid on fears of lower demand from China as Shanghai applied a "zero-COVID" strategy by locking down despite a relatively modest caseload.

Japan's Nikkei gained 0.91% in early trade, while MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.64% .

The BOJ vowed to keep monetary policy ultra-loose, offering to buy unlimited government bonds for the first four days of this week, to prevent yields in Japan from rising as they are doing elsewhere following U.S. Federal Reserve's moves to hike interest rates in the face of mounting inflationary pressures.

Gold flat on firmer US dollar, yields; Ukraine conflict in focus

Gold prices were flat on Tuesday as the US dollar held firm at a three-week high scaled in the previous session and yields climbed, while investors refrained from making big bets ahead of Russia-Ukraine peace talks starting later in the day.

Stock market today: Key factors and levels to watch on Tuesday

Benchmark stock indices Sensex and Nifty reversed early losses to close higher by 0.4% on Monday helped by buying in index heavyweight Reliance Industries, ICICI Bank and Bharti Airtel amid gains in global equities. The BSE Sensex staged a recovery in afternoon trade and climbed 231 points to settle at 57,593. The NSE Nifty closed at 17,222 on Monday.

Tech stock rally could stall

With some investors betting that U.S. rates could rise by 50 basis points in April, analysts warned that stocks could succumb to deeper losses in coming months.

"One of the more confounding developments during the past two weeks has been the strength of the rebound in the tech-heavy Nasdaq-100 Index at the same time interest rates soared to cycle highs," said Lisa Shalett, head of the global investment office at Morgan Stanley Wealth Management.

"As this and other yield curves head toward inversion, the nascent rebound in megacap tech stocks may stall."

Indeed, the U.S. Treasury yield curve, as measured by the gap between five and 30-year yields, inverted on Monday for the first time since early 2006, as a sell-off in the bond market resumed, with short-dated yields jumping to their highest since 2019

Stocks look past rate risks in late rally, yen wilts

World stock markets cast aside fears of rising interest rates on Monday with the tech-heavy U.S. Nasdaq index rallying 1.3%, even as parts of the Treasury yield curve signaled recession risks while oil prices tumbled on fears of weaker Chinese demand.

After a choppy session where stocks oscillated between gains and losses, U.S. shares finally broke higher, with electric car marker Tesla surging almost 8% on news that it will seek investor approval for a stock split.

But the buoyancy in stocks was foreshadowed by several signs and analyst warnings that it may not last, as global interest rates will likely climb higher this year and could drag on economic growth.

In the Treasuries market, for example, the yield curve for two- and 10-year Treasuries presaged growing recession risks on Monday, even though the curve for three-month bills and 10-year Treasuries still pointed to robust economic expansion.

Oil extends losses on China demand concerns ahead of OPEC+ meet

Oil kept falling in Asia -- after sliding 7% on Monday -- on growing concern that a virus resurgence in China will weigh on global demand.

West Texas Intermediate futures lost 1.3% to trade near $105 a barrel. China is tackling its worst outbreak since Wuhan more than two years ago at the start of the pandemic. The highly contagious omicron variant is testing the world’s biggest crude importer’s Covid Zero strategy.

The OPEC+ alliance, meanwhile, meets Thursday to discuss its supply for May and the group has signaled it will stick to its existing policy and ratify another modest increase in output. China’s virus flare-up comes as the market faces volatility from Russia’s war in Ukraine and tensions in the Middle East.

Shanghai is the latest Chinese city to be caught up in the new outbreak. Rystad Energy estimated a staggered lockdown across the financial hub could cut oil demand by as much as 200,000 barrels a day for the duration of restrictions across the city. About 62 million people in China are either in lockdown or facing one imminently, according to Bloomberg calculations.

Global supply lines brace for ‘menacing’ economic storm to widen

Global supply strains that started to ease in early 2022 are worsening again as headwinds strengthen from the war in Ukraine and China’s Covid lockdowns, threatening slower growth and faster inflation across the global economy.

After the pandemic hit Asia-U.S. trade routes the hardest over the past two years, the latest turmoil is being acutely felt in Germany, which is heavily reliant on Russian energy and suppliers across Eastern Europe. Business expectations in the region’s biggest economy during March posted the steepest one-month drop on record, factories across the continent face diesel and parts shortages, and delays moving cargo through key North Sea gateways such as Bremerhaven are lengthening.

Stocks climb amid oil slide as traders await talks

Asian stocks rose Tuesday as a slump in oil and the prospect of more cease-fire talks between Russia and Ukraine helped sentiment. Bets on aggressive U.S. monetary tightening sapped shorter maturity Treasuries.

Equities rose in Japan, Hong Kong and China, U.S. futures fluctuated and European contracts advanced after the S&P 500 rallied for a third day.

Oil extended a slide, taking West Texas Intermediate crude to about $105 a barrel, on concerns that China’s mobility curbs against Covid will sap demand.

The U.S. 10-year Treasury yield was steady at around 2.46%. Inversions along the bond curve, where some short-term rates exceed longer tenor yields, point to concerns about a looming economic downturn as the Federal Reserve hikes interest rates to quell high inflation.

The yen was around a six-year low against the dollar on the divergence between the Fed and a dovish Japanese central bank. The latter continued with unprecedented bond-market intervention to cap a surge in yields.

Global shares are up about 8% from the lows reached after Russia invaded Ukraine. Such resilience contrasts with a rout in bonds and inverting yield curves, which are shaking economic confidence. Investors are trying to parse the war, elevated commodity costs and the Fed’s fight against price pressures.

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