Shares rise on global cues, exit poll results

In addition, Russia’s statement that it is not trying to overthrow the current political leadership in Ukraine has raised hopes of a cooldown in crude oil prices in the coming days as geopolitical tensions ease.

The benchmark Sensex and Nifty indices rose 2.29% and 2.07%, respectively.

Also, the exit poll results of assembly elections in five states have reduced the uncertainty to some extent. The exit poll results for Uttar Pradesh, Punjab, Uttarakhand, Manipur and Goa were released on Monday evening after the last phase of polling was over. Several elections have predicted a clear majority for the Aam Aadmi Party (AAP) in Punjab and the Bharatiya Janata Party (BJP) in Uttar Pradesh, Uttarakhand and Manipur, while Goa is expected to see a close fight between the BJP and the Congress. The results of the voting will be declared on Thursday.

US stocks jumped and oil prices tumbled on Wednesday, as investors bet that the impact of sanctions on Russia was already reflected in market prices. The S&P 500 index rose 2.6%, while the technology-focused Nasdaq Composite Index jumped 3.5%. The Dow Jones Industrial Average advanced more than 2%. Some Asian indices, including the Taiwan and Jakarta Composite, gained 0.74-1.13%. However, on Wednesday, the Nikkei, Shanghai Composite and Hang Seng closed down 0.3-1.13%. Nevertheless, the opening of global indices on a very strong note helped Indian indices maintain momentum.

In the afternoon trade, Nifty tracked its gains and futures for European markets and US indices, said Devarsh Vakil, deputy head of retail research, HDFC Securities. He added that the index reversed its recent downtrend ahead of the election results.

Analysts also attributed Wednesday’s sharp rally to short covering and buying on dips. “It was again a sharp relief rally as investors covered short positions on reports of possible talks between Russia and Ukraine over the past week after a fierce battle between Russia and Ukraine,” said Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities. “

Vinod Nair, Head of Research, Geojit Financial Services, said that there was a sharp decline, defensive stocks like IT and pharma and price buying in private banks were seen.

Going forward, analysts will be watching the rupee movement along with softening of crude oil prices, which may set the course for the market. The rupee was also up 0.46% on Wednesday at 76.46 per dollar.

S Hariharan, head of sales trading, Emkay Global Financial Services, said margin estimates for the quarter have been cut somewhat, and expects a cut of around 0.5% in FY23 EPS estimates in response to rising commodity prices. May go. The IT and financial sectors, as well as the oil and gas sector, are expected to be outperformers with relatively high levels of flexibility in terms of earnings impact, while auto, cement and consumer staples stocks bear the maximum risk of a fall in earnings, he added. .

Foreign portfolio investors remain net sellers, offloading 1.07 trillion worth of shares during 2022 as of March 8. On the other hand, domestic institutions have bought 884 billion shares. According to provisional data of BSE, FPIs were net sellers on Wednesday as well.