Market LIVE: Sensex soars 1000 pts, Nifty tops 17,250; Banks, auto, realty shine

Stock Market LIVE Updates: Benchmark Indian indices opened higher on Thursday. The Sensex began the session with a jump of over 800 points at 57,620.28, while the Nifty50 opened around 250 points higher at 17,202.90.

Indian indices on Thursday witnessed a positive start as the Sensex surged over 800 points, while the Nifty50 gained around 250 points. The US Federal Reserve on Wednesday announced a quarter percentage point increase in its interest rate and signalled six more such hikes this year to curb a four decade-high inflation in the US. The progress in peace talks between Russia and Ukraine, rise in crude prices again, and Covid-19 cases in China will also have an impact on the market sentiments. Major indices on Wall Street closed higher on Wednesday after the Fed announcement ended the Covid-era's easy monetary policy. In Asia, shares in Japan, South Korea, Australia, Hong Kong, and Shanghai were all trading higher on Thursday. Japan's Nikkei 225 was up over 3.41%, while Hong Kong's Hang Seng was trading close to 6% higher at 11:15 AM IST.

ICICI Securities on AU Small Finance Bank

Considering an adequate provision buffer of 2.8% of loans against stress pool of 5.7% (GNPL at 2.6% + standard restructured loans at 3.1%), focus on tapping upcoming growth opportunities (9MFY22 AUM growth at 11%) and healthy profitability (9MFY22 RoE at 16%), we upgrade the stock to BUY (earlier: Hold) with an unchanged target price of Rs1,370. It is currently trading at 4.2x / 3.6x FY23E / FY24E P/BV, respectively, and we value it at 4.2x FY24E BVPS.

Small-cap metal stock gives breakout. Experts see strong upside in short term

Multibagger stock: La Tim Metal shares are one of the multibagger stocks in 2021 and the stock is projected as one of the probable multibagger stocks for 2022 as well. The metal stock has surged from near ₹95 to ₹180 apiece levels, logging near 90 per cent rise in year-to-date (YTD) time. On chart pattern, this small-cap metal stock has given breakout above ₹155 and the stock is expected to go up to ₹300 apiece levels in next 2-3 months, say stock market experts. They said that rising metal prices and strong balance sheet of the company may also support La Tim Metal share price rally in short term.

ICICI Securities on Prince Pipes and Fittings

We reiterate our BUY rating on Prince Pipes and Fittings (PRINCPIP) post our interaction with management and continue to believe it will be a beneficiary of growing demand for pipes, though the near-term demand environment remains tepid.

Bharat Forge share: Experts see 30% upside in defense stock. Do you own?

Bharat Forge share: In the wake of Russia-Ukraine war, defense expenditure across globe is expected to shot up and hence it can be a good idea to look at quality defense stocks available at attractive valuations. According to stock market experts, Bharat Forge is one such defense stock that one can look forward to add in one's portfolio. They said that Bharat Forge in railways, construction and mining space too where Government of India's (GoI's) focus on infrastructure is expected to trickle benefit in long-term.

Nykaa shares could see over 50% upside, as per Jefferies; initiates coverage with 'Buy' tag

India Internet opportunity is attracting players across categories and growth is mostly at the cost of profitability. Nykaa enjoys leadership position in the online beauty space, and its positive EBITDA margin is a key differentiation, said Jefferies in a note.

Nifty50: Technical and derivatives report by Sameet Chavan of Angel One

The Indian equity market started the day with a gap-up opening amid the positive global cues. The benchmark index remained in a slender range for most of the session until a strong buying weighed into the penultimate hour. The broad-based buying has poured some bullish sentiments across the bourses, wherein the index Nifty50 concluded the day in green with gains of 1.87 percent, a tad below the 17000 mark.

The index has marched firmly towards the critical resistance zone of the unfilled gap and the 200 SMA, showing reinforcement in the momentum. On technical aspects, a bullish indication has been showcased among various indicators, affirming the strength. However, it would be crucial to watch whether the hurdle would be taken over with authority or not. On an immediate basis, any decisive move above the psychological mark of 17000 could be seen in favor of the bulls, with immediate upside potential to test the 17200-17300 zone. While on the lower end, the support seems to shift upwards around 16700 levels, followed by the sacrosanct zone of 16500.

The volatility index has cooled off by 10 odd percent in a day, which is a sign of diminishing uncertainty. Hence, going ahead, traders are advised to keep a close tab on the mentioned levels and continue with a stock-centric approach.

Rakesh Jhunjhunwala portfolio: Experts give buy tag to this hospitality stock

Rakesh Jhunjhunwala portfolio: In the wake of unlock theme, stock market experts are highly bullish on hospitality stocks that received maximum beating during the lock-down restrictions. According to them, a quality hospitality stock like Delta Corp is expected to outperform other sectors in upcoming sessions in mid to long term. They said that Delta Corp shares can go up to ₹310 in immediate short term and if this Rakesh Jhunjhunwala stock sustains above this level, we may see Delta Corp share price climbing to a new high.

₹10,000 monthly turns to ₹11.98 lakh in 5 years in this mutual fund SIP plan

Mutual funds SIP (Systematic Investment Plan) is one of the investment tool that helps an investor overcome volatility of the equity markets without bothering about the right time to start. Its compounding benefit feature is one the attractions that gives better return to long term investors. However, there are some equity mutual fund plans that have delivered whopping return to its investors beating the index return by huge margin. PGIM India Midcap Opportunities Fund - Direct Plan-Growth is one such mutual funds plan.

Paytm analyst who predicted slump further reduces target price

Paytm, the Indian digital payments startup whose stock has slumped 71% since its November market debut, had its price target reduced further by an Macquarie Capital Securities (India) Pvt. analyst who was early to predict the company’s market troubles.

Warnings abound in market circles as Fed error bets seen rising

Investors should adopt a softly softly approach in assessing trading opportunities after a hawkish Federal Reserve raised interest rates and signaled more to come.

That’s the view of market participants who caution against making mega bets after the central bank flagged hikes at all six remaining meetings this year to tackle the fastest inflation in four decades.

“If they do follow through on what the dot plot suggests that’s worrisome. The risk of a policy mistake went up materially today," said Ron Temple, co-head of multi-asset at Lazard Asset Management in New York. “Markets are going to need time to assess what a multi-dimensional tightening feels like."

Hong Kong raises benchmark interest rate after Fed tightens

The Hong Kong Monetary Authority raised its benchmark interest rate by 25 basis points, after the U.S. Federal Reserve did the same, saying it wants to maintain stability in the financial system amid heightened market volatility.

The base rate was increased to 0.75% from 0.5%, said in a statement on its website. The rate moves in lockstep with the Fed’s rate since the Hong Kong dollar is pegged to the U.S. currency.

Local banks like HSBC Holdings Plc, Standard Chartered Plc and Hang Seng Bank Ltd. tend to follow the HKMA’s move by adjusting their best lending rates, although they’re not obliged to do so. The HKMA said past experience shows that Hong Kong dollar interbank rates may not necessarily rise in tandem with U.S. moves.

Aluminium gains as China stimulus vow lifts sentiment

Aluminium prices rose on Thursday, supported by hopes of more stimulus measures in top metals consumer China that helped soothe fears over a fresh outbreak of COVID-19 in the country.

Three-month aluminium on the London Metal Exchange (LME) rose 1.1% to $3,294 a tonne by 0240 GMT.

The most-traded April aluminium contract on the Shanghai Futures Exchange gained 2% to 22,115 yuan ($3,484.21) a tonne, having earlier touched a one-week high.

Chinese Vice Premier Liu He on Wednesday urged government bodies to roll out market-friendly policies and "cautiously" introduce measures that risk hurting markets.

IndiGo ‘in talks with Central govt’ to bring aviation fuel under GST ambit

As crude oil prices continue to soar, IndiGo's full-time Director and Chief Executive Officer Ronojoy Dutta on Wednesday urged the Central government to bring the Aviation Turbine Fuel (ATF) under goods and service tax (GST) ambit for the benefit of the aviation sector as well as customers.

Stock market today: What SGX Nifty, other factors indicate for Thursday's trade

Equity indices roared back on Wednesday after a day's pause on across-the-board buying. The BSE Sensex surged 1,039.80 points or 1.86% to finish at 56,816. Likewise, the broader NSE Nifty jumped 312.35 points or 1.87% to 16,975.

Balrampur Chini continues to be the only stock under F&O ban on NSE

Sugar stock Balrampur Chini, that was part of the ban in the previous sessions, continues to be the only stock under the futures and options (F&O) segment on on Thursday, March 17, 2022 by the National Stock Exchange (NSE).

Traders weigh China vow to resolve risks

Investors weighed the implications of China’s strong push to stabilize battered markets, in which the nation’s top financial policy body promised to ease a regulatory crackdown, support property and stimulate the economy.

A Bloomberg Intelligence index of developer stocks was up as much as 9.7% Thursday, poised for its second consecutive gain, while stronger builders’ dollar bonds continued to climb. That’s after Wednesday’s rally following Beijing’s coordinated statement to address investor concerns and ensure market stability. Another statement relayed through Xinhua News Agency said that the government wouldn’t expand a trial on property taxes this year, after a report showed home prices fell at a faster pace in February.

However, it may be too little, too late, Bloomberg Intelligence analyst Kristy Hung wrote in a report. Policy support for the China property sector including facilitation of M&A, looser bank lending and easing of mortgage curbs will likely fail to turn around the near-term liquidity outlook of distressed developers. The yield on Chinese junk bonds hit a fresh high near 28% Wednesday, according to a Bloomberg index.

Yen left behind as Fed begins hiking

The yen was pinned to a six-year low on the dollar and struggled against crosses on Thursday, as a rate hike with a hawkish outlook from the U.S. Federal Reserve underscored just how far the Bank of Japan is likely to lag worldwide policy tightening.

The Fed has raised interest rates for the first time since 2018 and policymakers' projections for as many as six more hikes this year were even more aggressive than expected.

A return of risk appetite was no help to the yen, either, as hopes for a breakthrough in Russia-Ukraine peace talks set equities surging and safe-havens falling. 

The yen hit 119.13 per dollar overnight, its lowest since early 2016, and was last at 118.96. It dropped 1.6% against the Aussie on Wednesday and slid further on Thursday to a four-year low of 86.97 yen per Aussie.

The euro, which caught a boost from peace hopes, surged more than 1% on the yen overnight and more than 0.7% on the dollar to stand at $1.1044 in early Asia trade.

Gold flat as Fed rate hike, Ukraine peace talks dent appeal

Gold prices were flat on Thursday, hovering near a three-week low touched in the previous session, after the U.S. Federal Reserve's interest rate hike lifted Treasury yields and as the Russia-Ukraine peace talks also capped bullion's appeal.

Gold, silver prices in India

Gold prices slipped by ₹216 to ₹51,279 per 10 grams in the national capital on Wednesday on the back of a decline in the precious metal's prices overseas and rupee appreciation, according to HDFC Securities.

In the previous trade, the precious metal settled at ₹51,495 per 10 grams.

In contrast, silver jumped ₹200 to ₹67,827 per kg from ₹67,627 per kg in the previous trade.

In the international market, gold traded 0.18 per cent lower at USD 1,914 per ounce and silver was flat at USD 24.80 per ounce.

Yields rise after Fed raises interest rates

Bond yields rose sharply after the Fed’s announcement. The yield on the 10-year Treasury rose to 2.20%, then hovered at 2.17% by late afternoon. It was at 2.15% late Tuesday. The 2-year Treasury yield rose to 2% then eased back to 1.94%, still a big move from 1.85% a day earlier.

Bond traders stunned by a hawkish Fed are sounding growth alarms

Defying their stock-market counterparts, Treasury traders aren’t buying Jerome Powell’s upbeat pronouncements on growth. In fact, in the aftermath of Wednesday’s policy decision, one bond-market indicator of economic hardship is flashing red for the first time since the darkest days of the pandemic.

After the Federal Reserve raised interest rates and signaled hikes at all six remaining meetings this year, a section of the Treasury curve -- the gap between five- and 10-year yields -- inverted for the first time since March 2020. Meanwhile the flattening trend between two- and 10-year yields continued.

These are time-honored indicators of oncoming growth pains as the inflation-fueling fallout from Russia’s invasion of the Ukraine continues.

With officials projecting raising interest rates as high as 2.8% by the end of 2023, bond traders are growing increasingly concerned that the economy could buckle under the weight of monetary-policy normalization.

Ukraine and Russia: What you need to know right now

U.S. President Joe Biden called Russian President Vladimir Putin a war criminal, prompting the Kremlin to say the comment was "unforgivable" as the war in Ukraine raged for a 21st day despite talk of compromise in peace negotiations.

Diplomacy 

U.S. national security adviser Jake Sullivan spoke with Nikolay Patrushev, the secretary of Russia's Security Council, in the first high-level contact publicly disclosed between the two countries since the invasion.

President Putin said Russia was ready to discuss Ukraine's neutral status but that Moscow would still achieve the goals of its military operation.[L2N2VJ1J7]

The U.N. Security Council is due to vote on Friday on a Russian-drafted call for aid access and civilian protection, but diplomats say the measure is set to fail because it does not push for an end to the fighting or withdrawal of Russian troops.

Asian stocks rally strongly as Fed hike, Ukraine talks boost sentiment

Japan and Hong Kong led a jump in regional stocks on Thursday, joining a rally on Wall Street overnight as potential risks from Federal Reserve monetary tightening to the Ukraine war and a slowdown in China became less murky.

Treasury yields eased a little after spiking to nearly three-year highs overnight - with shorter-end yields rising more to flatten the curve - after the Fed raised the policy rate for the first time since 2018. The Fed increased rates by an as-expected quarter point and telegraphed equivalent hikes at every meeting for the remainder of this year to aggressively stamp out inflation.

The safe-haven dollar, though, remained on the back foot and oil also stabilized well south of recent multi-year highs amid signs of material progress in talks between Russia and Ukraine to end a three-week-old invasion that Moscow says is a "special military operation" to demilitarize its neighbor.

Tokyo's Nikkei index up 3% on Fed rate hike, oil

Tokyo's benchmark Nikkei index surged over three percent shortly after the open on Thursday, tracking global rallies linked to a US Fed rate hike and another pullback in oil prices.

The Nikkei rose 3.14 percent or 808.34 points to 26,570.35 in the first 15 minutes of trading, while the broader Topix index added 2.39 percent or 44.35 points to 1,897.60.

Investors were cheered by the US central bank raising interest rates in the Federal Open Market Committee (FOMC) as widely expected, lifting US shares.

US Fed raises interest rate in battle against high inflation

The Federal Reserve escalated its battle against the wave of price increases battering the US economy, raising the benchmark interest rate on Wednesday even as it acknowledged the risks posed by the war in Ukraine.

At the conclusion of its two-day meeting, the policy-setting Federal Open Market Committee (FOMC) announced a quarter-point rate hike, the first since 2018 and since it cut the rate to zero at the start of the Covid-19 pandemic.

The central bank clearly signaled that the move, already well telegraphed by Fed officials in the weeks leading up to it, would be the first in a series.

"We're not going to let high inflation become entrenched. The costs of that would be too high," Federal Reserve Chair Jerome Powell told reporters, adding that the FOMC is committed to using its "powerful tools" to prevent that.

The central bank is walking a tightrope to ensure its inflation-fighting efforts don't derail the recovery from the Covid-19 pandemic even as Russia's invasion of Ukraine introduces new uncertainty in an economy battered by supply chain snarls and labor shortages.

How major US stock indexes fared Wednesday

Stocks shook off an afternoon stumble and ended higher on Wall Street Wednesday after the Federal Reserve announced its first interest rate hike since 2018.

Bond yields also rose as the Fed started to shift its policy to fighting inflation. As markets had anticipated, the Fed raised its short-term rate by 0.25 percentage points. The move marks a shift by the Fed away from maintaining the ultra-low interest rates it had in place during the worst part of the pandemic, which were meant to stimulate the economy. Now that prices are rising, it’s changing course.

On Wednesday:

The S&P 500 rose 95.41 points, or 2.2%, to 4,357.86.

The Dow Jones Industrial Average rose 518.76 points, 1.5%, to 34,063.10.

The Nasdaq rose 487.93 points, or 3.8%, to 13,436.55.

The Russell 2000 index of smaller companies rose 61.75 points, or 3.1%, to 2,030.72.

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