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Big gap up opening today?

Good Morning, Everyone, Nifty opened yesterday with a gap up and went on a big rally to cross 16900 but did not sustain the level and went into a big profit booking to close a very volatile day. But it seems like a panic selling as the market is again opening with a big gap up today. However, it looks difficult to sustain as long as the next big resistance of 16900 to 17000 is broken with power.

Global Market:

The US stock markets closed higher on Tuesday as inflation worries ebbed and oil prices slid. The S&P 500 rose 89.34 points, or 2.1 percent, to 4,262.45. The Dow Jones Industrial Average rose 599.10 points, 1.8 percent, to 33,544.34. The Nasdaq rose 367.40 points, or 2.9 percent, to 12,948.62.

Shares in Asia-Pacific rose in Wednesday trade, as investors watch for developments around the Covid situation in China as well as the upcoming rate decision by the US Federal Reserve. In Japan, the Nikkei 225 climbed 1.36 percent while the Topix index gained 1.4 percent. South Korea’s Kospi advanced 0.68 percent.

Oil prices rose early on Wednesday, bouncing back after earlier falling more than $1 a barrel, as Russia's invasion of Ukraine continues to dominate volatile trading with ceasefire talks the latest market trigger. Brent futures were up 0.8 percent, at $100.74 a barrel. U.S. West Texas Intermediate (WTI) crude rose 0.6 percent, at $97.02 a barrel.

As Russia's invasion of Ukraine enters its 20th day, Russia’s defense ministry spokesperson claimed that Ukraine’s southern Kherson region was now under Russian control, as per Russian news agencies. An adviser to the Ukrainian president said that the war was at a crossroads that it could either lead to an agreement or a new Russian offensive.

Indian Market:

Trends on SGX Nifty indicate a positive start for the broader index in India, with a gain of 254 points or 1.53 percent.

Markets regulator SEBI on Tuesday came out with certain clarifications on transactions in the units of mutual funds and has also given guidelines for authentication in case of redemption of units. The clarifications pertain to transactions in units of mutual funds on stock exchange platforms and also for entities including online platforms other than exchanges.

A circular issued in October 2021 had said that stockbrokers and clearing members shall not accept payment through one-time mandate or issuance of mandates or instruments in their name for mutual fund transactions.

Japan reported a wider-than-expected trade deficit in February as an energy-driven surge in import costs caused by massive supply constraints added to vulnerabilities for the world's third-largest economy. Exports rose slightly less than expected despite a rebound in China-bound shipments, in a worrying sign for an economy facing growing uncertainty from supply challenges and Russia's invasion of Ukraine.

Imports surged 34.0% in the year to February, Ministry of Finance data showed on Wednesday, above a median market forecast for a 28.0% gain in a Reuters poll.

The Department for Promotion of Industry and Internal Trade (DPIIT) in its recent press note has changed the existing definition of the real estate business to provide more clarity in the FDI policy for the sector. As per the note, FDI is not permitted in a firm that is engaged or seeks to engage in real estate business, farmhouse construction, or trading in transferable development rights. It added that earning of rent/income on lease of a property, not amounting to transfer, will not amount to real estate business.

"Real estate business means dealing in land and immovable property with a view to earning profit therefrom and does not include development of townships, construction of residential /commercial premises, roads or bridges, educational institutions, recreational facilities, city and regional level infrastructure, townships...," the note said.

FII and DII data

Foreign institutional investors (FIIs) continue selling in India as they have net offloaded shares worth Rs 1,249.74 crore on March 15. However, domestic institutional investors (DIIs) have bought shares worth Rs 98.25 crore on the same day.

Stock Specific News:

One 97 Communications (Paytm) | Munish Ravinder Varma resigned as non-executive, non-independent director of the company due to personal commitments and other pre-occupations.

Punjab National Bank | The company has reported a borrower fraud of Rs 2,060.14 crore in the non-performing asset account of IL&FS Tamil Nadu Power. Fraud of Rs 2060.14 crore is being reported by the bank to the RBI in the accounts of the company. The lender has already made provisions amounting to Rs 824.06 crore.

Zomato | The food delivery giant acquired a 16.66 percent stake in Mukunda Foods Private Ltd, a food robotics company, for cash consideration of $5 million. The board also approved a loan of up to $150 million to Grofers India in one or more tranches. The loan to Grofers is in line with its stated intent of investing up to $400 million cash in quick commerce in India over the next 2 years.

Infibeam Avenues | The board has approved the appointment of Sunil Bhagat as Chief Financial Officer of the company, in place of Hiren Padhya.

EKI Energy Services | The firm is in advanced discussions with some of the European oil and gas majors, to launch an initiative to supply free improved cookstoves to rural households to reduce carbon footprint and generate carbon offsets.

Shyam Metalics and Energy | The company announced a fresh round of Rs 990 crore capital expenditure plans to further expand the capacity by 2.85 MTPA. This capital expenditure will be over and above the ongoing capital expenditure expansion of Rs 3,000 crore.

Genus Paper & Boards | The company has successfully commenced production of duplex paper from one of the production lines at a new unit in Muzaffarnagar, Uttar Pradesh. The Muzaffarnagar unit has manufacturing facilities for the production of kraft paper and duplex paper.

ITC | The company has acquired 1,040 compulsorily convertible preference shares of Rs 10 each of Mother Sparsh Baby Care. With this, its shareholding in Mother Sparsh stands at 16 percent.

Max Healthcare Institute | The company said Ananya Tripathi has resigned as the Non-Executive, Non-Independent Director and Gaurav Trehan has been appointed as the Additional Director (Non-Executive).

Future Retail | Rahul Garg has resigned as the Non-Executive, Non-Independent Director of the company.

Persistent Systems | The company will buy MediaAgility India for $71.71 million. This includes an upfront payment of $53.25 million to shareholders.

Reliance Industries | Reliance New Energy Ltd, a wholly-owned subsidiary of Reliance Industries Ltd (RIL), has signed definitive agreements to acquire substantially all of the assets of Lithium Werks BV for a total transaction value of US$ 61 million including funding for future growth. The assets include the entire patent portfolio of Lithium Werks, manufacturing facility in China, key business contracts and hiring of existing employees as a going concern.

Anupam Rasayan India | The firm said Afzal Malkani has resigned from the post of Chief Financial Officer of the company due to personal reasons. The company has appointed Amit Khurana as the Chief Financial Officer, with effect from March 15.

Avantel | The company has received a supply order of loco devices for implementation of RTIS phase - 2 (Real Time Train Information system). The order is valued at Rs 125.68 crore.

RITES | The company has declared a third interim dividend of Rs 7.50 per share. The record date has been fixed as March 25 for the payment of the dividend.

Marsons | The board has approved the purchase of advanced thermoelectric technology to generate cheap sustainable power from waste heat and to reduce global CO2 emissions). The technology will be acquired from US-based company Micro Power Global Limited in lieu of equity shares to be allotted on a preferential basis. The board has also approved the plans for venturing into EPC for setting up electric vehicle charging stations.

Wipro | The IT services company has bagged a contract from Speira which has operations in Germany and Norway. Over the next five years, Wipro will work to strengthen the technology infrastructure and cybersecurity requirements of Speira.

Manappuram Finance | The board of directors of the company will be meeting on March 17 to consider the borrowing program for FY23 and the business plan for FY23.

Vodafone Idea | The telecom player announced its foray into the gaming industry through Vi Games on the Vi app in partnership with the gaming company Nazara Technologies.

DLF | DLF has pre-leased one million sq ft of office space at its project DLF Downtown in Chennai, to Standard Chartered Global Business Services. This will be the company’s largest global office campus once completed.

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