Stock Market LIVE: Sensex up, Nifty above 16,900; financials, IT, metals surge

Share market LIVE updates: Indian equities were higher on Thursday on positive global cues. Asian markets followed Wall Street higher after Fed chairman Jerome Powell downplayed the likelihood of bigger rate hikes following the U.S. central bank's biggest increase in two decades

The market reaction is likely to evolve as investors digest the US Fed's commentary. A global wave of monetary tightening and commodity-fueled price pressures could yet hurt economic growth. Russia is also continuing its war in Ukraine and China’s Covid lockdowns are snarling global supply chains.

Indian shares climb higher led by auto, IT, banks, metal stocks?

Indian equities were higher on Thursday, tracking Asian peers that rose as the Federal Reserve's less hawkish tone boosted investor sentiment.

Benchmark indexes had closed over 2% lower on Wednesday, having posted their biggest intraday percentage loss since 7 March earlier in the session, after India's central bank hiked benchmark rate in a surprise move.

At 10am, Sensex was up 502.10 points at 56171.13, and Nifty rose 156.20 points to 16833.80. About 1,996 shares advanced, 822 declined, and 86 were unchanged.

Nifty view: Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One

Nifty breached the support zone around 16800 on Wednesday and plunged downwards in a decisive manner. In a normal scenario, we would have interpreted this as a ‘Pennant’ breakdown and expected much lower levels; but on this occasion, we refrain from this approach. The rationale behind this is the overall oversold positioning of the market and the move has come after a surprising event. In addition, the global event US Fed meeting is slated and it would be important to see how the market reacts to it as well. Since such developments can be deceptive at times, we would rather hold our horses for a day or two and would assess the overall situation before arriving at any directional view.?

For the coming session, 16800 – 16900 have now become immediate hurdles; whereas it would be interesting to see how Nifty behaves around 16600 – 16500.

Yes Securities maintains BUY on Hero MotoCorp?

Yet to make inroads into growth segments

With expectation of strong demand recovery in 2Ws (4Q retails for HCML surpassing wholesale), should result in op leverage benefits for the company against near term RM headwinds. This coupled with company's cost cutting efforts through LEAP savings should result in ~260bp margins expansion over FY22's B24E. We upgrade our EPS estimate by 1.9%/0.4% for FY23/24 to factor in higher spares and accessories sales. We maintain BUY with revised TP of Rs2,833 (Rs2,825 earlier. Any success on HMCL's EV strategy can be a key re-rating trigger.

Market view: Mitul Shah, Head Of Research at Reliance Securities

The markets are likely to see gap up opening, SGX nifty is up 170 points compared to Yesterday’s spot Nifty closing. Nikkei is closed due to holiday while Hang Seng is up 0.3%.

Cognizant reports 11.5% rise in Q1 net profit, posts highest quarterly revenue

Nasdaq-listed Cognizant Technology Solutions Corp’s March quarter net profit rose 11.5% year-on-year to $563 million, on the back of an 11% increase in revenue in constant currency to $4.8 billion - its highest-ever quarterly revenue and fourth consecutive quarter of revenue growth. The company follows a January to December accounting year.

In comparison, for the March quarter, Tata Consultancy Services Ltd’s (TCS) dollar revenue grew 14.3% in constant currency from a year earlier to $6.7 billion, while that of Infosys Ltd grew 20.6% to $4.3 billion.

Pfizer makes big R&D push in India

Pfizer Inc. on Wednesday opened a global research centre in Chennai, which will develop and support drugs for the drugmaker’s manufacturing centres worldwide. The facility, located at the Indian Institute of Technology (IIT) Madras Research Park, is Pfizer’s first such centre in Asia and will employ more than 250 scientists and technicians from different specialities.

Policy holders, retail investors make a dash for LIC IPO on Day One

India’s biggest initial public offering received a robust response, with retail investors placing bids for nearly two-thirds of the life insurer’s shares on offer on the first day of the share sale despite a stocks selloff.

On Wednesday, Life Insurance Corp. (LIC) of India policyholders, who are eligible for a discount on the sale price, employees and other retail investors subscribed to 67% of the shares on sale.

Stocks to Watch?

Shares of SBI, Kotak Mahindra Bank, Dabur, Marico, Adani Power, among others, will be in focus today.

Adani Power, Adani Transmission, Dabur India, Marico, Exide Industries, TVS Motor Company, Voltas, Computer Age Management Services, CEAT, Firstsource Solutions, Intellect Design Arena, Procter & Gamble Health, PNB Gilts, are among the companies scheduled to release earnings today

Gold gains 1% as dollar dips after Powell flags inflation risks

Gold prices climbed on Thursday, as the Federal Reserve expectedly raised interest rates by 50 basis points to tackle inflation, which the U.S. central bank highlighted as a risk to the economy while also ruling out larger hikes for the year.

Spot gold was up 0.9% at $1,898.06 per ounce, after rising 1% earlier in the session. U.S. gold futures rose 1.4% to $1,894.20.

The Federal Reserve on Wednesday raised its benchmark overnight interest rate by half a percentage point, the biggest jump in 22 years, and Fed Chair Jerome Powell made an appeal to Americans struggling with high inflation to be patient while officials take the hard measures to bring it under control.

Oil edges up on EU's proposed Russian oil ban, but weak China data weighs

Oil prices edged higher on Thursday, extending gains from the previous session, as a European Union proposal for new sanctions against Russia, including an embargo on crude in six months, offset concerns over Chinese demand.

Brent crude futures had climbed 35 cents, or 0.3%, to $110.49 a barrel in Asian deals, while U.S. West Texas Intermediate crude futures rose 25 cents, or 0.2%, to $108.06 a barrel.

Both benchmarks jumped more than $1 a barrel earlier in the volatile session after gaining more than $5 a barrel on Wednesday.

The sanctions proposal, which was announced by European Commission President Ursula von der Leyen and needs unanimous backing by the 27 EU countries to take effect, includes phasing out supplies of Russian crude in six months and refined products by the end of 2022.

It also proposes to ban in a month's time all shipping, brokerage, insurance and financing services offered by EU companies for the transportation of Russian oil.

SGX Nifty up nearly 1%

Nifty futures on the Singapore Exchange rose 152 points, or 0.91%, to 16,852 in early deals on Thursday, indicating a positive start for Indian indices.

Indian stock markets tanked on Wednesday after the Reserve Bank of India stunned the market with an increase in policy rates, citing inflationary pressures.

The central bank's monetary policy committee, in an off-cycle meeting, raised key lending rate by 40 basis points.

Sensex slumped 1,306.96 points to end the day at 55,669.03 after the RBI rate hike, while Nifty tanked 391.50 points to 16,677.60.

Asian shares advance on less hawkish Fed stance; oil rises

Stocks climbed in Asia, bonds jumped and the dollar fell amid a bout of investor relief after the Federal Reserve raised interest rates as expected to tackle inflation while countering fears of super-sized hikes.

An Asian share gauge was up about 1%, bolstered by Hong Kong. Chinese equities were mixed after reopening from a holiday. U.S. futures fluctuated following a 3% advance in the S&P 500 index, the biggest since 2020.

Fed Chair Jerome Powell said a 75 basis points hike is “not something that the committee is actively considering," spurring the market rally. The Fed raised rates a half point and signaled similar moves for the next couple of meetings.

Crude hit $108 a barrel on a European Union plan to ban Russian barrels over the next six months. Wheat rose on the possibility of export curbs by major grower India.

S&P 500 futures shed 0.1%, Nasdaq 100 futures dropped 0.1%, and Euro Stoxx 50 futures climbed 2.2%.

Australia’s S&P/ASX 200 Index rose 0.6%, Hong Kong’s Hang Seng Index added 1.5%, and China’s Shanghai Composite Index rose 0.4%.

Early moves in Asia followed a U.S. rally overnight where the Dow Jones Industrial Average rose 2.81%, the S&P 500 gained 2.99%, and the Nasdaq advanced 3.19%.

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