Yet another gap-up opening! Time for a consolidation?

Good Morning Everyone, The Indian stock market is opening after a long weekend, though the global markets were open, and with global positivity, Nifty is expected to open with a gap up at 17400.


But since there is nothing special in the market to fuel the Nifty higher, the only reason the Nifty can go up is on any positive news from Russia-Ukraine tensions or FII's going in for a big buy after so many days of selling. And if none of this happens we can see consolidation in the market.


Global Markets:


Wall Street's three major indexes closed higher on Friday, with the biggest boost from recently battered technology stocks, after talks between U.S. President Joe Biden and Chinese President Xi Jinping over the Ukraine crisis ended without big surprises.


The Dow Jones Industrial Average rose 274.17 points, or 0.8%, to 34,754.93, the S&P 500 gained 51.45 points, or 1.17%, to 4,463.12 and the Nasdaq Composite added 279.06 points, or 2.05%, to 13,893.84. Wall Street's three main indexes boasted their biggest weekly percentage gains since early November 2020 with the S&P adding 6.2% while the Dow rose 5.5% and the Nasdaq jumping 8.2%.


Asian share markets started the week in a cautious mood on Monday as investors clung to hopes for an eventual peace deal in Ukraine, but the fighting raged on with no sign of stopping.

Japan's Nikkei was shut, but futures traded around 300 points above the cash close. Most share markets rallied last week in anticipation of an eventual peace deal on Ukraine, but it could take actual progress to justify further gains.

Indian Market:

Trends on SGX Nifty indicate a gap-up opening for the broader index in India with a gain of 119 points. The Nifty futures were trading around 17,401 levels on the Singaporean exchange.


India's collection from tax on personal and corporate income jumped over 48 percent in the current fiscal after a 41 percent surge in advance tax payments, mirroring sustained economic recovery in a year that witnessed two waves of coronavirus infections.


Net collections of direct taxes until March 16, 2022, in the fiscal year that started on April 1, 2021, stood at Rs 13.63 lakh crore, compared to Rs 9.18 lakh crore in the same period a year back, an official statement said.


FII and DII data

Buying by foreign institutional investors (FIIs) continued for second consecutive session as they have net bought shares worth Rs 2,800.14 crore, while domestic institutional investors (DIIs) have net sold shares worth Rs 678.45 crore on March 17.


Stock Specific News:

Reliance Industries | RIL arm, Reliance Retail Ventures Limited (RRVL), announced the acquisition of a majority 89 percent equity stake in Clovia with an investment of Rs 950 crore. RRVL will buy a stake in Purple Panda Fashions, which owns and operates the Clovia business, through a combination of secondary stake purchase and primary investment, said a joint statement.


HDFC | Housing Development Finance Corporation's subsidiary HDFC Capital Advisors Ltd has entered into an agreement to buy 7.2 percent stake in Loyalie IT-solutions at Rs 28.16 per share.


Granules India | The company received licenses from Medicines Patent Pool to manufacture and market generic versions of Pfizer's oral treatment nirmatrelvir. This drug will be co-packaged with ritonavir for the treatment of COVID-19. The licenses are applicable for both active pharmaceutical ingredients and finished products, in tablet form, of nirmatrelvir; ritonavir.


Torrent Pharma | The company has entered into licensing agreement with Medicine Patent Pool to manufacture & commercialize a generic version of Pfizer Oral COVID-19 Treatment.


Dhanlaxmi Bank | The bank's board of directors has approved a rights issues of up to Rs 130 crore.


State Bank of India | SBI has signed an agreement to provide a $1 billion credit facility to Sri Lanka.


Cerebra Integrated Technologies | The company has executed an agreement with a potential purchaser from Dubai for the transfer of its entire shareholding of 86.5 percent in subsidiary Cerebra Middle East FZCO, Dubai. The company would like to focus on E-waste management now being the core business of the company. Cerebra will plan expansion in the said area.


KEI Industries | Smallcap World Fund Inc acquired 6.4 lakh equity shares in the company through open market transactions on March 16. With this, its shareholding in the company stands at 5.02 percent, up from 4.31 percent earlier.


Gujarat Industries Power Company | The company has stopped power generation from its 145 MW combined cycle power plant, gas-based station-I at Vadodara, due to the increasing price of natural gas after the beginning of the Ukraine-Russia war. This plant uses natural gas as its fuel for the generation of power. The company may resume operations once the gas prices are back to normal levels.


NBCC (India) | The company has received a work order from the Administration of Union Territory of Ladakh, for providing comprehensive, design, engineering, and project management consultant services for various works. The estimated cost of the project is Rs 500 crore.


EIH | The company's board of directors has approved the sale of the entire shareholding in subsidiary EIH Flight Services, Mauritius, for MUR 325 million (Rs 55.2 crore).


Financial Services Companies | Shares of Kotak Mahindra Bank, RBL Bank, Axis Bank, HDFC Bank, State Bank of India, Bandhan Bank, IndusInd Bank and Punjab National Bank ended up 0.14-3.32 percent. “The entire market, including banking stocks, had fallen quite a bit in anticipation of the US Fed Outcome and now that the event has passed, investors are buying the dip,” said Vinit Bolinjkar, Head of Research, Ventura Securities. Nifty Bank, Nifty Private Bank, Nifty PSU Bank and Nifty Financial Services closed 0.90-2.77 percent higher.


JSW Steel | The stock ended 4.18 percent higher and was among the top Nifty50 gainers.


Future Group stocks | Future Retail, Future Consumer, Future Enterprises, Future Lifestyle Fashions, Future Supply Chain Solutions and Future Market Networks ended 2.17-15.55 percent lower.


Angel One | Shares of the company ended 14.71 percent higher and were the best performers on Nifty500.


Oil India | The company's shares settled5.95 percent lower and were the worst hit on Nifty200.


Nykaa | Jefferies has initiated coverage on Nykaa with a 'buy' rating and a target price of Rs 1,650. The stock ended at 3.77 percent higher.


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