Sensex jumps 160.58 points to 49,911.99 in opening trade; Nifty advances 54.15 points to 14,761.95

Sensex has jumped 160.58 points to 49,911.99 in opening trade; Nifty advanced 54.15 points to 14,761.95.

Domestic equity market benchmarks Sensex and Nifty have been trading in the positive territory on Wednesday. Sensex reclaimed 50,000 level, while the broader Nifty 50 index was nearing 14,800. Index-heavyweights such as Reliance Industries Ltd (RIL), HDFC Bank, Axis Bank, Bajaj Finance and ICICI Bank were among top index contributors. TCS, Infosys, Tech Mahindra, Power Grid Corporation of India and HCL Tech were among top Sensex laggards. Barring Nifty IT, all the sectoral indices were ruling in the positive territory. The Nifty Metal index was up over 2 per cent while the Nifty PSU Bank index gained 1%.

BSE Sensex was trading 150 points or 0.30% up at 49,895 in the pre-opening session on Wednesday. BSE Sensex was trading 144 points or 0.30% up at 49,895, while the broader Nifty 50 index was up 40 points or 0.34% at 14,757.

India’s GDP may turn positive at 1.3% in the third quarter of 2020-21 as the number of cases is falling and public spending has started rising, according to a report. The government will release the GDP numbers for the October-December quarter of the current fiscal on Friday. DBS Group Research economist Radhika Rao said a sharp improvement in the COVID-19 situation and rising public spending are the two factors that bode well for December 2020 quarter. India posted de-growth of 24% and 7.5% in GDP in the first and second quarters ended June and September 2020, respectively.

What’s happening in the market on 24 February 2021:

• Opening Bell: Sensex opens higher, Nifty nears 14,750; metals shine, RIL continues to gain
  Indian indices opened high on Wednesday as heavyweight Reliance Industries continued gaining post O2C reorganisation, contributing the most to the benchmarks. Meanwhile, the rise in metal, pharma, auto and banking sectors also lifted the sentiment. At 9:20 am, the Sensex was up 195 points at 49,946 while the Nifty rose 54 points to 14,761. Broader markets were also higher at opening with the midcap and smallcap indices up over half a per cent each. On the Nifty50 index, Coal India, JSW Steel, Tata Steel, ONGC, and IOC were the top gainers while Gail, UPL, TCS, Infosys and Kotak Bank led the losses. All sectors, barring Nifty IT were also in the green at the opening. The metal index rose the most, up 2% while Nifty Bank and Nifty Auto added 0.6% each. Nifty Pharma was also up half a per cent.
• In Nifty 50, Tata Consumer Products to replace GAIL from March 31
  The stock exchange said there will be replacements in 36 indices, including Nifty 50, from March 31. The exchange’s Index Maintenance Sub-Committee (Equity) decided to make replacements in the indices as part of its periodic review. In Nifty 50, Tata Consumer Products will replace GAIL from March 31.
• Tata Consumer share price hits new 52-week high

  Tata Consumer Products will replace state-owned Gail India in the Nifty50 index becoming the fifth Tata Group company to be included in the benchmark. The firm will join peers including TCS, Tata Steel, Tata Motors and Titan. The change will take effect on March 31. The stock price of Tata Consumer jumped 4% to hit its 52-week high of Rs 652.85 per share post the announcement. Meanwhile, GAIL fell as much as 3% to its day’s low of Rs 142.90 per share. Post the inclusion, the weight of Tata Group stocks in the index will rise to 8.75% from 8.15%.

• Nifty resistance lies at 15000-15100

  The Index is trying hard to hold on to the 14700 levels. If we manage to keep below it, the Nifty could slide down to 14500 and thereafter 14300. On the upside, there is a resistance patch at 15000-15100 and until that is not crossed, we remain bearish in the short term time frame, says Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

• The market could see Bearish momentum up to 72.40 levels
  The rupee opened on positive at 72.35 against the US dollar in opening trade this morning, yesterday it gains a bit in the morning session but depreciated a bit after the RBI’s intervention. FII sold 1100 CR into domestic equity on Tuesday putting pressure on the local currency, Dollar index trading negative and on the verge of breaking $90. Investors will eye on the development of stimulus discussion on Friday. Technically, USDINR Feb Future closed at 72.5350 in the previous trading session, the market could see Bearish momentum up to 72.40 levels in today’s session, says Kshitij Purohit, Product Manager, Currency & Commodities at CapitalVia Global Research Limited.
• Gold, silver could start marginally higher
  Domestic gold and silver could start marginally higher this Wednesday morning, tracking the overseas markets. Technically, MCX Gold April is trading above 46500 and further can continue its bullish momentum up to 46950-47100 levels. Support is at 46650-46400 levels. MCX Silver March is trading below 70000 levels and can see sideways to bearish momentum. Resistance is at 70050-70900 levels. Support is at 69000-67900 levels. MCXBULLDEX March below 15000 levels can see negative momentum. The range for the session is 14850-15050 levels, says Sriram Iyer, Senior Research Analyst at Reliance Securities.