Sensex soars 900 pts, Nifty above 16,250; M&M climbs 4%

Key equity indices were trading near day's high in afternoon trade, tracking positive European cues. Barring the Nifty Metal index, all the sectoral indices on the NSE were in the green. Autos and media stocks were in demand. After hitting the day's low of 15,990 in initial deals, the Nifty marched higher and hit the day's high of 16,325.05 in afternoon trade.

At 13:30 IST, the S&P BSE Sensex added 908.85 points or 1.70% at 54,332.94. The Nifty 50 index gained 248.65 points or 1.55% at 16,262.10.

The rally was broad based. The S&P BSE Mid-Cap index surged 1.83% while the S&P BSE Small-Cap index rallied 1.70%.

Buyers outpaced sellers. On the BSE, 2613 shares rose and 658 shares fell. A total of 102 shares were unchanged.

Mahindra & Mahindra (up 4.22%), Reliance Industries (up 3.77%), Adani Ports & SEZ (up 3.17%), UltraTech Cement (up 3%) and Grasim Industries (up 2.95%) were top Nifty gainers.

Shree Cement (down 2.72%), ONGC (down 2.29%), Power Grid Corporation of India (down 1.95%), NTPC (down 1.79%) and JSW Steel (down 0.99%) were major Nifty losers.

Investors took position in equities ahead of the results of UP state election scheduled for Thursday. The elections to the five states - Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur - were held in seven phases between 10 February 2022 and 7 March 2022. The results will be announced on 10 March 2022.

As per exit polls conducted by the media, the Bharatiya Janata Party (BJP) is expected to sweep with a majority in Uttar Pradesh and Manipur, while the Aam Aadmi Party (AAP) will unseat the Congress in Punjab, as per the polls for the just-finished five assembly elections released on 7 March 2022. In Uttarakhand, the ruling BJP may emerge as the first party to retain power in the hill-state. The BJP is likely to retain power in Manipur. Goa is likely to witness a fractured mandate in the recently contested assembly elections.

Global Cues:

The Dow Jones index futures were up 360 points, indicating a strong opening in the US stock market today.

European shares rose across the board while most Asian stocks declined on Wednesday as investors continue to monitor surging commodities prices and the ongoing war in Ukraine.

U.S. President Joe Biden announced that the U.S. will ban imports of Russian oil. The move risks exacerbating existing price surges on supply concerns and expectations of stronger growth.

In the commodities market, Brent crude for May 2022 settlement rose $2.33 at $130.31 a barrel.

A spike in crude oil prices has raised concerns over the impact on inflation, currency and input cost for companies across sectors as India imports majority of its crude oil requirements. Higher crude oil prices could increase India's expenditure and adversely affect the fiscal deficit.

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