Flat with a positive bias! Are the bulls here to stay?

Good Morning, Everyone, Equity benchmarks rallied for the second day in a row, aided by gains in auto, consumer durables, metal, banking, and information technology stocks. Focus shifts to RBI's Monetary Policy Committee which is set to announce the rate decision today. Interest-sensitive stocks like Banking and auto stocks recorded a smart rally ahead of the RBI credit policy announcement.

Sentiment boosted on account of the rally in the global market, cool down oil price, reduce geopolitical tension of Ukraine issue and local fund buying interest. Moreover, there was short covering in the market ahead of the RBI credit policy. Among the global market, both Asian and European rose following a positive performance on Wall Street as traders prepared for the release of highly anticipated US inflation data, while sentiment was also buoyed by signs of easing Russia-Ukraine tensions. US Future has climbed up by half percent.

Sensex reclaimed the 58k mark and rose 1.14% to close at 58,466 while it rose 700 points to an intraday high of 58,508. Nifty also advanced by a similar magnitude to close at 17,464, gaining 197 points or 1.10% against the previous week's close while touching an intra-day high of 17477. Coal India is among the major gainer in the Nifty stocks (up 5%) followed by Maruti, Indusind Bank, Hindalco, Bajaj Auto, and HDFC Bank. However, ONGC, Sun Pharma, BPCL, and SBI Life ended on a negative note. Among the major Index, the Nifty auto Index witnessed a major gainer yesterday and surged over 2%. However, Nifty Metal, Bank Index and IT index gained 1.5% each. Nifty MidCap Index gained 1%. Nifty 500 stocks advance-decline ratio was 2:1. India Vix slipped 6% to close at 18.50

Auto stocks recorded a smart rally in hope of improving demand after a significant fall in pandemic cases. Auto major Maruti climbed up by 4% to close at Rs8949. Tata Motor gained 2% to close at Rs501. Bajaj Auto, Hero Motocorp, Ashok Leyalnd and M&M 1-3%.

Metal stocks witnessed a smart rally on account of aluminum traded near the highest level in more than 13 years, as a flareup in virus infections in China squeezed output further in a market already reeling from supply shortages. Nalco surged by 5% to close at Rs125 amid a hefty volume of 4cr shares traded on NSE. Hindalco soared 3% to close at Rs542. Vedanta, SAIL, and NMDC gained nearly 2% each.

Banking stocks gained with the private banks being dominant today. HDFC Bank gained 2.5% to close at Rs1498. ICICI Bank, Indusind Bank, Federal Bank, Axis Bank, and Kotak Bank gained between 1-3%. However, private banks like Bank of Baroda and PNB declined 3% and 1% respectively on account of profit booking. However, PSU Bank's major SBI managed to end in positive territory.

The Nifty index opened the gap up and support-based buying pulled the index to 17477 levels. It closed near its day’s high with gains of around 200 points. It formed a Bullish candle on a daily scale and negated its lower highs - lower lows of the last four sessions. Now it has to hold above 17350 zones for an up move towards 17600 then 17777 zones where on the downside support exists at 17250 and 17100 zones.



Market Today:

Global Markets:

Wall Street's bright mood continued Wednesday, with the Nasdaq popping nearly 2.1 percent for the second day of gains as investors waded back into riskier waters. Optimism has risen as evidence mounts that

·         Omicron's surge did less damage to the economy than some had feared, with strong employment data and healthy performances from big-name companies trickling in. Dow Jones and S&P 500 gained 1% and 1.5% respectively. US 10-Year Bond declined to 1.93% from the recent high of 1.97%

·         Asian stocks rose Thursday following the best day for U.S. shares this month, while the 10-year Treasury yield held a drop ahead of inflation data that will shape views on Federal Reserve policy tightening.

·         Equities in Japan, Australia, and South Korea advanced (up to half percent each).

·         European stocks ended in green on Wednesday mixed as investors digested a fresh set of corporate earnings and awaited key US inflation data to be released on Thursday. UK Index gained 1% while Germany and France Index gained 1.5% each.

·         Oil edged higher by 2% to above $91/bbl after a surprise decline in U.S. crude inventories tightened the market further amid signs of strong demand in the world’s biggest economy.

Indian Markets:


Brokers Radar:

Morgan Stanley TGT on TATA Power at 217


Events:

RBI Credit policy at 10 am, LIC to submit DRHP in SEBI for IPO (media report), First phase of UP state assembly election (58 seats), Weekly Nifty and Bank Nifty expiry, US CPI or Inflation data, Greenlam Industries stock split from Rs5 to Re1, Dhanuka Agritech Rs10, TTK Prestige Rs2.50, BPCL Rs5.


Results:

ABB India, Ageis Logistic, Alembic Pharma, BEML, Bharat Forge, Bharat Rasayan, CAMS, Career Point, Carborundum Universal, Cummins India, Dr Lalpath Labs, Everest Industries, Heromoto Corp, Hindalco, Indian Hume Pipe, IRFC, M&M, Lemon Tree, MRF, MTAR Tech, NMDC, Quess Corp, SJVN, Strides Pharma, Tata Chemical, Trent and Wonderala


Stock Specific News:

Glenmark Pharma, SaNOtize Research launch nasal spray for COVID-19 treatment in India - Glenmark Pharma and its partner Canadian biotech firm SaNOtize Research on Wednesday launched a Nitric Oxide nasal spray for the treatment of adult patients with COVID-19, who have a high risk of progression of the disease.


DB Realty approves the issue of 50 million convertible warrants to non-promoter investors on a preferential basis. The above convertible warrants will be in addition to 77 million warrants as disclosed on Feb. 4.


Apollo Hospital seeks to sell up to 20% in Apollo Healthco - ET


L&T wins significant contracts for building, factory business - L&T secured a significant order from the Bangladesh Hi-Tech Park Authority to construct Hi-Tech I.T. parks at eight locations across the country, valued between Rs 1,000 crore and Rs 2,500 crore.


Bosch will invest Rs 1,000 crore on localization of Auto Tech and a further Rs 1,000 crore to expand digital platforms. The company expects every third new vehicle in India to be an electric vehicle by 2030 Bosch is evaluating opportunities from electrification and remains invested in a self-reliant mobility ecosystem in India.


Bosch India says evaluating multiple opportunities arising from electrification developments and continuing to invest Rs1000cr in 5 years for localization on auto technology. Bosch India Q3 net profit Rs235cr (up 26% YoY) - estimates Rs301cr, Other income Rs80.34cr (down 28% YoY) - expectation Rs120cr and Revenue Rs3110cr (up 2.6% YoY) - expectation Rs3272cr


Bharti Airtel Expects Another Round of Tariff Hike This Year.


Dabur enters the Healthy Snacking market with Real Seeds.


GAIL pre-pones US gas supplies, eyes new deals to meet India's energy demand.


Tata Power announced strong Ebitda.


Lupin in Distribution Pact With Medis for Orphan Drug NaMuscla.


Aurobindo Pharma announced poor Q3 results.


Petronet LNG announced strong Q3 results.



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