4 Reasons Why Sensex Surged 1,000 Points Today

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Indian share markets witnessed positive trading activity throughout the day today and ended on a strong note.

Benchmark indices followed global peers' footsteps and sharply recouped previous session's losses as global investors pinned hopes on Russia-Ukraine talks for de-escalation of the war amid easing of crude oil prices.

At the closing bell, the BSE Sensex stood higher by 1,040 points (up 1.9%).

Meanwhile, the NSE Nifty closed higher by 312 points (up 1.9%).

UltraTech Cement and Axis Bank were among the top gainers today.

Cipla and Sun Pharma, on the other hand, were among the top losers today.

The SGX Nifty was trading at 17,004, up by 352 points, at the time of writing.

The BSE Mid Cap index and the BSE Small Cap index ended up by 1.8% and 1.5%, respectively.

Sectoral indices ended on a mixed note with stocks in the realty sector, metal sector and oil & gas sector witnessing buying interest.

Shares of Bharat Dynamics and JK Paper hit their respective 52-week highs today.

US stock futures are trading on a strong note today with the Dow Futures trading up by 360 points.

The rupee is trading at 76.26 against the US$.

Gold prices for the latest contract on MCX are trading down by 0.2% at Rs 51,463 per 10 grams.

Here are 4 Factors why Indian Markets Rallied Today

Crude oil prices cool-off: Crude oil prices on Tuesday settled below the US$100 per barrel mark for the first time since 1 March as fresh lockdowns in China's manufacturing hubs on account of a new covid-19 wave signaled at possible reduction in petroleum demand in China.

Brent Crude was 1% higher this morning at US$101 a barrel level, but still down 27% from its recently hit 14-year high of US$139.

The easing of prices is not limited to oil, but several commodities including metals and gold have also come off their record high levels.

Moreover, Russian Foreign Minister Sergei Lavrov's statement on Tuesday that negotiations on reviving the Iran nuclear deal were nearing an end also lifted sentiments.

Positive global trend: Asian stock markets saw a much-needed bounce today as Hong Kong's tech giants led a rally in the city after their recent rout, while oil prices rose back above US$100 but remain pressured by concerns over demand from China.

The Hang Seng and the Shanghai Composite ended up by 9.1% and 3.5%, respectively. The Nikkei ended up by 1.6% in today's session.

The bulk of the gains today also came after a Chinese state media report signaled support for Chinese stocks.

The US and Chinese regulators are progressing towards a cooperation plan on the US-listed Chinese stocks, the report said, citing a financial stability meeting on Wednesday chaired by Vice-Premier Liu He.

Federal reserve meeting: Globally investors are also waiting for the interest rate decision by Federal Reserve that will be announced on Wednesday night.

Most experts hope to that the Fed will announce a 25-bps hike in interest rates - the first since 2018 - against earlier expectations of 50 bps hike in rates, which seems to have discounted by the market.

The reason for lowering expectations is largely due to the ongoing Ukraine-Russia war and sanctions imposed on Russia by western world.

All eyes are the commentary by Jerome Powell about further rate hikes as inflation hit fresh 40-year high of 7.9% in February.

Sectoral gains: All sectoral indices participated in the run with Metal being the largest gainer rising nearly 3% against 4% correction in previous session.

Bank, Auto, and Financial Services rose 1.8% each, while IT and FMCG were up around a percent each.

Speaking of stock markets, Brijesh Bhatia talks about sugar stocks, in his latest video for Fast Profits Daily.

Should you buy sugar stocks now? And what's the outlook for these stocks? Brijesh answers these questions in the video below.

Tune in to find out more:

In news from the FMCG sector, Eveready Industries was among the top buzzing stocks today.

Shares of Eveready Industries climbed 2.8% in early trade today as the company said that the Burman Group's Rs 6 bn open offer to pick up an additional 26% stake is slated to open on 26 April 2022.

The Burman Group will make the additional acquisition in the batteries and flashlight maker through various entities, Eveready said in an exchange filing.

In a draft letter of offer to the public shareholders of Eveready Industries India by JM Financial, the manager of the offer, the date of commencement of the tendering period has been fixed on 26 April 2022, and the date of closure on 10 May 2022.

Last date for upward revision of the offer price and the size of the open offer is 22 April 2022, as per the letter shared on BSE by Eveready Industries.

Earlier this month, the Burman group, through various entities had made a Rs 6 bn open offer to acquire around 18.9 m shares of Eveready Industries, representing 26% of the expanded voting share capital, at a price of Rs 320 per share, payable in cash.

The group bought a further 38.22 lakh shares aggregating 5.26% stake in Eveready Industries, through its stock broker JM Financial Services, thereby triggering the open offer for an additional 26 % stake under the regulator's norms.

Eveready Industries share price ended the day up by 2.9% on the BSE.

Speaking of the FMCG sector, have a look at the chart below which shows the performance of BSE Sensex and BSE FMCG index since 2009:

While the Sensex has offered 393% returns since 2009, the BSE FMCG index has gone up a staggering 532% returns over the same period.

Richa Agarwal, Senior Research Analyst at Equitymaster, and Editor of the smallcap service, Hidden Treasure, believes this outperformance could continue for many years.

As per Richa, with a rising population and standards of living, Indian's consumption demand for FMCG products will skyrocket over the coming years.

In news from the paper sector, paper stocks were in focus today after manufacturers raised prices following shortage of wastepaper amid an uptick in demand.

Prices of wastepaper, a critical raw material for recycled paper, have shot up in the past few months as many offices, courts, and schools remained shut for almost two years on account of the pandemic, leading to lower collections.

As schools, colleges, offices, and courts reopen, there's likely to be an uptick in demand.

Experts are suggesting that JK Paper, West Coast Paper, and Andhra Paper could be beneficiaries as they have in house supply of raw materials and use wood pulp as a key input.

Speaking of paper stocks, ace chartist at Equitymaster Brijesh Bhatia saw this opportunity and published an article yesterday.

Brijesh highlighted how most paper stocks have broken out from their consolidation zones.

You can read the article here: Why Paper Stocks are Rising.

Moving on to news from the telecom sector...

Tata Communication Jumps After Collaboration with Formula 1

Tata Communications rose 5% on the BSE after the company announced a multi-year strategic collaboration with Formula 1.

Under the collaboration, Tata Communications will function as the official broadcast connectivity provider of Formula 1.

Following the introduction of Formula 1's remote broadcast operations in 2020, Tata Communications has allowed reduction in the organisation's travelling freight by 34%.

Formula 1 racing began in 1950 and is the world's most prestigious motor racing competition, as well as the world's most popular annual sporting series.

Tata Communication share price ended the day up by 4.5% on the BSE.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

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