General

Sensex 500 points up as Auto & It Stocks Rally; Bajaj Finserv, Infosys Top Gainers

Indian benchmark indices rose today tracking firm global cues.

The Nikkei is flat while the Hang Seng rose 1.4% before wiping out some gains. The Shanghai Composite is up 1.1%.

In the U.S. stock market, Wall Street indices closed sharply higher on Wednesday after the Federal Reserve raised its benchmark overnight interest rate by half a percentage point and said it would begin cutting its bond holdings next month as a further step in the battle for the U.S. stock market. to lower inflation.

The Dow Jones rose 2.8% while the Nasdaq rose 3.2%.

The Federal Reserve yesterday implemented its largest rate hike since 2000 and announced it will begin shrinking its massive balance sheet next month, deploying its most aggressive monetary policy tightening in decades to fight inflation.

At home, Indian stock markets are heavily traded. Benchmark indices rose today following solid global signals.

Market participants are tracking shares of Adani Power, Dabur India and Adani Transmission as these companies are set to release their results today.

The BSE Sensex is trading up 487 points. Meanwhile, the NSE Nifty is trading 154 points higher.

Bajaj Finserv and Tech Mahindra are among thetop gainers Today. Trust, on the other hand, is one of the biggest losers today.

The BSE Mid Cap Index is up 0.8%. The BSE Small Cap Index is up 0.6%.

All sector indices are traded in green, with stocks in the automotive, IT and financial sectors making the most purchases.

Shares of Power Grid hit their 52-week high today.

The rupee is trading at 76.14 against the US$.

The gold price rises by 1.3% 51,252 per 10 grams. Meanwhile, silver prices are trading at 61,662 per kilo.

Crude oil prices rose slightly after the European Union proposed new sanctions against Russia, including a six-month crude oil embargo.

Speaking of the current stock market scenario, amid continued volatility, take a look at the two charts below, in the order they are placed:

Near-term volatility in Sensex offset by long-term gain

View full image

The year-over-year change in the Sensex was hardly predictable, but one who stayed invested multiplied each lakh nearly 14 times.

Timing the markets can be suicidal as valuations and volatility send the markets into a seesaw mode.

As an individual investor, you need to hold stocks with too much conviction and invest consistently to see the theme of compounding.

Because 2022 could be very profitable over time, you could equip your portfolio with the right kind of safe assets and safe stocks.

In news from the tech space, ABB India is one of the hottest stocks today.

ABB India posted a more than twofold jump in its net profit to on Wednesday 3.7 billion in the March quarter compared to the same period a year ago. This was mainly due to higher revenues.

The company’s net income in the year-ago quarter was 1.5 billion.

The company follows the fiscal year from January to December.

ABB’s total sales increased to 19.7 billion in the quarter of 16.3 billion in the same period a year ago.

The company’s total orders increased to 22.9 billion, the highest in the first quarter of the past five years.

The year also started with a healthy increase in export orders from several companies.

Commenting on the performance, MD Sanjeev Sharma said:

All parameters showed solid growth in the first quarter of CY2022. The wave of orders and one of the strongest order books in recent times demonstrate the strong preference for ABB products and the deep customer connection.

He added that ABB India’s ESG commitments are on track, and it published its first Business Responsibility and Sustainability Report (BRSR) as an industry best practice.

The company’s board of directors also approved Monica Widhani as an additional director in the category of non-executive and independent director with effect from May 6, 2022.

The price of the ABB India share is currently rising by 8.1%.

Continuing with news from the IPO space, Delhivery has set the price range for its initial public offering (IPO) Bee 462-487 per share.

Registration for the number is possible on Wednesday 11 May and registration is possible until Friday 13 May.

Investors can bid on a minimum of 30 shares and then on multiples thereof.

The company has shares worth 200 m to eligible employees, who receive a discount of . to get 25 per share during the bidding process.

The logistics provider and the supply chain startup have reduced the size of the offer to: 52.4 billion of 74.6 billion euros as previously planned.

The company will issue new shares worth 40 billion and existing shareholders and promoters will sell shares worth 12.4 billion.

Delhivery is the largest fully integrated logistics provider in India by revenue.

It turned into a unicorn in 2019 when it raised $413 million in a Series F round led by SoftBank Vision Fund. Delhivery offers a full range of logistics services along with various value-added services.

In other news from the IPO space, the gray market premium (GMP) for LIC stocks has fallen after the RBI announced a rate hike yesterday.

The GMP rose steadily from 72 to 85 to 105 in the past few days. It peaked at 125 on the first day of the IPO opening.

The GMP has now crashed to 86.

Note that the rate hike came four years after the MPC decided in April to remove forward guidance and give the central bank the flexibility to react more quickly to economic conditions.

Market sentiment soured with the rate hike and benchmark indices crashed more than 2% yesterday.

The situation now appears to have normalized as markets are trading briskly today.

From this room we will keep you informed of the latest developments. Stay tuned.

This article is syndicated from Equitymaster.com

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