BSE midcap and smallcap indices underperformed but still notched gains in the range of 1-1.3%
Indian stock markets started this week on a strong note with benchmark indices Sensex and Nifty50 settling with over 2% gains. NSE Nifty 50 index rose 2.3% to 14,845, supported by gains in IT and banking stocks. Sensex surged over 1100 points to 50,084. The broader market indices BSE midcap and smallcap underperformed but still notched gains in the range of 1-1.3%. Indian markets were closed on Monday due to a public holiday.
Here are 10 things to know about today's market performance:
1) The rupee however slumped by 87 paise to close at 73.38 against the US currency on Tuesday as rising crude oil prices and a strong American currency weighed on investor sentiment.
2) "Rupee's relative uptick in mid-March was transient. We think the sharp relative depreciation is more a reflection of reversal of those transient factors than anything structural at play. In all likelihood, rupee will start following suit of its emerging markt peers by early April," said Madhavi Arora, Lead Economist, Emkay Global Financial Services.
3) JSW Steel, which rose 5%, said on Friday that it had completed a resolution plan for Bhushan Steel and Power, including a payment of ₹19,350 crore to financial creditors.
4) Major lenders to Bhushan, including State Bank of India Punjab National Bank, Canara Bank gained more than 1% each and ICICI Bank rose 2.3%.
5) The Nifty IT index rose 2.9% on expectations of strong results in the upcoming quarter and the sharp fall in rupee also lifted sentiment about IT stocks. Heavyweights Infosys and Tata Consultancy Services gained 3.67% and 3%, respectively.
6) Shares of Indian mobile gaming platform Nazara Technologies Ltd surged more than 80% in their market debut today but later trimmed gains to close up 45%.
7) Global stock markets were mostly higher today as investors shook off worries about a hedge fund default that hit international banking stocks overnight, and remained focused on the global COVID-19 vaccination programme.
8) "The Nifty has successfully closed past its resistance zone of 14700-14800. However, I would be more comfortable if we can get past 14950 on a closing basis. That would trigger a rally up to levels closer to 15300. Until we do not get past 14950, there is always a chance we take a U-turn from these levels and head southwards to 14400," said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
9) Extreme caution is advised at the current levels, he added.
10) Ajit Mishra, VP - Research, Religare Broking, said: "It’s surprising the way the benchmark is showing resilience amid mixed cues. Going ahead, upcoming data viz. Core Sector and auto sales along with global cues will remain on the participants’ radar. Needless to say, the recent deterioration of the COVID situation in India has dented sentiment and will be closely watched by the participants in the coming sessions too. We thus reiterate our cautious stance until we see some decisiveness in the trend."
Devarsh Vakil, Deputy Head of Retail Research, HDFC securities, said: "The unblocking of the Suez Canal and expected unveiling of an infrastructure plan from US President Biden buoyed sentiments on the Street. Our markets reacted very favorably to the positive global cues and surged. Technically, with the Nifty surging higher and closing above the crucial 20-day SMA, the bulls seem to have an upper hand in the short term."
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