Sensex Rallies 1,400 Pts Ahead of Assembly Poll Results; Axis Bank, SBI Jump 5%

The Hang Seng is up 1.1% while the Shanghai Composite jumped 1.9%. Japan’s Nikkei stood as the biggest gainer and advanced a massive 4%.

Back home, Indian share markets opened on a strong note, following the trend on SGX Nifty.

Riding the rebound across global markets, benchmark indices are trading on a firm note.

The BSE Sensex is trading up by 1,165 points. Meanwhile, the NSE Nifty is trading higher by 340 points.

Axis Bank and SBI are among the top gainers today.

Coal India, on the other hand, is among the top losers today.

In line with the up-move in benchmarks, broader markets also extended profits. 

The BSE Mid Cap index and the BSE Small Cap index are trading higher by 1.7% and 2.1%, respectively.

All sectoral indices are trading in green with stocks in the banking sector, automobile sector and realty sector witnessing most of the buying.

Shares of Gujarat Narmada and Swan Energy hit their 52-week highs today.

The rupee is trading at 76.27 against the US$.

Gold prices are trading down by 0.5% at ₹52,495 per 10 grams.

Meanwhile, silver prices are trading down by 0.2% at ₹69,450 per kg.

Gold fell as US Treasury yields rose while investors opted for riskier assets amid a retreat in crude oil prices after the UAE said it would help increase oil production, making safe-haven bullion less appealing.

Crude oil prices ticked up today. European Union leaders will phase out buying Russian oil, gas and coal as the bloc seeks to reduce its reliance on Russian sources of energy.

In news from the global markets, US and European stock markets snapped their recent losing streak with a strong rebound on Wednesday, as energy prices eased and traders bet that EU leaders would take action to limit the economic impact of Russia’s invasion of Ukraine.

However, investor sentiment has shifted ahead of an EU summit today when leaders will discuss a new growth and investment model and ways to reduce dependence on Russian energy.

US stocks surged led by financial and tech shares, rebounding from several down days.

The tech-heavy Nasdaq Composite jumped 3.6% while the Dow Jones rallied 2%.

Meanwhile, renewed risk appetite drove the S&P 500 to its largest one-day gain since June 2020, rising 2.6%. 

Speaking of S&P 500, ace chartist at Equitymaster Brijesh Bhatia shared an update on the broad-based index yesterday, on his telegram channel.

Brijesh shared the levels which needs to be watched if the S&P wants to continue its bullish trend.

Here’s Brijesh:

The sell-off in last couple of hours ended the day near lows for S&P500 (SPX) after the stellar comeback from 4,114.

Surprisingly, the low of 4114 is also the palindromic number which has its significance in astro analysis. (I am not an astro analyst)

Technically, the reversal from bullish nen-star harmonic pattern and dip to test the lows are can be an opportunity for bulls.

The bullish cypher pattern has formed near the yesterday's low indicating the bears may call it a day for this bearish momentum.

The bullish divergence on RSI signs a weakening bears and it's time for bulls to enter the arena.

If bears want to continue their bearish momentum, they need to break 4,000-4,052 zone where the bullish harmonic will negate.

If you're interested in being a part of Brijesh's charting journey as he shares how to create wealth from the profitable trade setup, we highly recommend you join his telegram channel – Fast Profits.

You'll get access to the best trading ideas in the stock market.

In news from the engineering sector, PNC Infratech is among the top buzzing stocks today.

PNC Infratech has been declared the L1 (lowest bidder) by National Highways Authority of India for project 'improvement and up-gradation'.

The scope of the project involves improvement and up-gradation of 54.4 km long to four-lane road with paved shoulders Hardoi district of Uttar Pradesh on Hybrid Annuity Mode.

The bid project cost is ₹8.6 bn and the project is to be constructed in 30 months and operated for 15 years post construction.

The EPC company is engaged in infrastructure development through the construction of highways including BOT (built, operate and transfer projects), airport runways, bridges, flyovers and power transmission projects among others.

Shares of PNC Infratech are currently trading up by 2.6%.

Moving on to news from the power sector, Tata Power on Wednesday said its Singapore-based JV Resurgent Power Ventures has won the bid to acquire the stressed asset of South East UP Power Transmission Company (SEUPTCL).

This was done through its resolution process under the Insolvency and Bankruptcy Code (IBC).

The Tata group company holds 26% stake in the joint venture through its wholly-owned Singapore-based arm Tata Power International Pte Ltd. The balance 74% stake is held by ICICI and others.

SEUPTCL was incorporated as a special purpose vehicle formed by UP Power Transmission (UPPTCL) on 11 September 2009, to operate the specified intra-state transmission system for a period of 35 years.

The company has around 1,500 kms of transmission line.

Tata Power CEO and MD Praveer Sinha said, 

This asset will bring significant value to our transmission business and diversify the Resurgent Power portfolio after the successful turnaround of the 1,980 MW Prayagraj Power Plant and acquisition of System Strengthening Scheme in Northern Region NRSS XXXVI Transmission.

Tata Power share price is currently trading up by 2.7%.

Speaking of Tata Power, have a look at the chart below to see how the company has performed in the year gone by.

Trading at a price-to-book value (P/BV) of 3.4x, a number higher than the past five years average P/BV of 1.2x, the stock of Tata Power has doubled in the past year.

For more details on Tata Power, check out the company's fact sheet on our website.

This article is syndicated from Equitymaster.com