Bulls staged a dramatic recovery on Dalal Street on Tuesday, snapping a two-day losing run and ending higher with gains of more than 3%, spurred by purchasing across sectors on lessening Ukraine-Russia tensions.

The Nifty50 has formed a long bull candle on the daily chart, reflecting a counter-attack by the bulls, and completely filling Monday’s huge gap down, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

Crucial resistance awaits the 50-scrip index at 17,640, he said. “Sustaining above the lower tops of the past 8-9 sessions could negate a short-term bearish setup for the index,” he added.

Indian Indices

Sensex rose 1736.21 points or 3.08% to 58,142.05 and Nifty was up by 509.65 points or 3.03% to 17,352.45 in the previous session. Sensex touched high and low of 58,211.38 and 56,438.47, respectively. All the 30 stocks are advancing on the index. Nifty traded in a range of 17,375.00 and 16,839.25 and there were 48 stocks advancing against 2 stocks declining on the index.

Broader Indices

The broader indices ended in green with the BSE Midcap index rising 2.68%, while the Small cap index was up by 1.97%. The top gaining sectoral indices on the BSE were Auto up by 3.87%, Bankex up by 3.46%, Consumer Discretionary up by 3.35%, Telecom up by 3.16% and TECK up by 3.13%, while there were no losers on the BSE sectoral front.

Support and Resistance levels

Key support levels for the Nifty are placed at 17,003, followed by 16,653. If the index moves up, the key resistance levels to watch out for are 17,538 and 17,725, according to pivot charts.

SGX Nifty

The trends on SGX Nifty indicate a negative opening for the index in India with a 15-points loss. The Nifty futures were trading at 17,387.80 on the Singaporean Exchange around 06:55 hours IST.

Asian Markets

Asian markets finished mixed. The Shanghai Composite gained 0.50%, while the Hang Seng led the Nikkei 225 lower. They fell 1.11% and 0.79% respectively.

US Markets

The S&P 500 rose 69.40 points, or 1.6%, to 4,471.07.

The Dow Jones Industrial Average rose 422.67 points, or 1.2%, to 34,988.84.

The Nasdaq rose 348.84 points, or 2.5%, to 14,139.76.

The Russell 2000 index of smaller companies rose 55.67 points, or 2.8%, to 2,076.46.

European Markets

European markets closed sharply higher yesterday with shares in Germany leading the region. The DAX was up 1.98% while France’s CAC 40 was up 1.86% and London’s FTSE 100 was up 1.03%.

After geopolitical tensions ease, the 10-year US Treasury rate rises to 2.03%

The benchmark 10-year US Treasury yield jumped 3.5 basis points to 2.031% on February 15, following a statement from the Russian Defense Ministry that it had begun returning some troops to their bases, reported CNBC. Earlier last week, the benchmark 10-year rate climbed above 2% following the hottest inflation reading in four decades. The yield on the 30-year Treasury bond also traded 2.9 basis points higher at 2.33%. An auction for three-year Treasury bonds was held on February 8. Although yields were lower on February 14, they rose following comments from Russia’s Foreign Minister Sergey Lavrov to Vladimir Putin that appeared to suggest Russia would continue talks with EU and NATO over Ukraine.

The CBI has issued a lookout notice to the directors of ABG Shipyard in connection with a Rs 23,000 crore bank fraud case

The Central Bureau of Investigation (CBI) said on February 15 that it has issued lookout notices against Rishi Agarwal and other directors of ABG Shipyard in connection with the Rs 23,000-crore bank fraud case, to make sure they do not leave the country while the case is probed. News agency ANI quoted a senior CBI official as saying: “The Lookout Circulars (LOCs) were issued against the directors of ABG Shipyard in the Rs 22,842 crore bank loan fraud case.” According to the Central Bureau of Investigation, a forensic audit report it received from the banks two years ago had found instances of fraud in April 2012 and July 2017.

The World Bank warns developing countries about the financial sector’s post-COVID instability

The World Bank has called on developing countries to improve the health of their financial sectors, warning that risks created by the COVID-19 pandemic had led to certain fragilities from what it called ‘non-transparent debt’. These risks – as per the Bank’s World Development Report 2022, released on February 15 – may currently be hidden by the interrelated nature of household, corporate, bank, and government balance sheets. “The risk is that the economic crisis of inflation and higher interest rates will spread due to financial fragility. Tighter global financial conditions and shallow domestic debt markets in many developing countries are crowding out private investment and dampening the recovery,” World Bank Group President David Malpass said.

SEBI makes the separation of the functions of chairperson, MD, and CEO voluntary

Securities and Exchange Board of India (SEBI) on February 15 changed the requirement for listed companies to separate posts of chairperson and managing director (MD) or chief executive officer (CEO) to voluntary from mandatory. The decision was taken at a board meeting of the regulator. The tweaked rule will now fully come into force from April 1, 2022 after multiple delays. Earlier, the top 500 listed companies by market capitalisation had to mandatorily separate the role of the chairperson and MD/CEO from April this year following the two-year extension given by the capital market regulator in January 2020. The rule was first approved by SEBI’s board in 2018. The market regulator’s decision comes nearly a year after SEBI Chairman Ajay Tyagi had urged companies at a Confederation of Indian Industry (CII) event to comply with the proposed new rule before the April 2022 deadline. SEBI’s intention behind the rule was to implement global best practices in terms of corporate governance and to avoid the concentration of power in the hands of one individual in the company.

Mahindra Finance raises Rs 500 crore through issuing bonds

Mahindra & Mahindra Financial Services (Mahindra Finance) on Tuesday said it has raised an amount aggregating Rs 500 crore by issuing secured bonds. A meeting of the committee of the board was held on Tuesday, February 15, 2022, approving the allotment of 5,000 secured redeemable non-convertible debentures aggregating to Rs 500 crore, Mahindra Finance said in a regulatory filing. The tenure of the bonds is 2 years and 365 days from the deemed date of allotment of the bonds, which is February 15, 2022. The bonds are set to mature on February 14, 2025. The bonds will bear an interest rate at benchmark plus spread per cent payable annually. The spread is 1.65 per cent per annum.

Bulk Deal data

Promoter M K Hamied sold 67,23,252 equity shares in the Cipla company at Rs 910.15 per share, and another promoter Y K Hamied offloaded 1,34,46,504 equity shares in the company at Rs 910.05 per share via open market transactions on the BSE as per the bulk deals data. The combined stake sale represented little more than 2% of total paid up equity in Cipla.

KRUSHANG MAHESH SHAH bought 79,200 shares of Giriraj Civil Devp Ltd at Rs 98.92 per share on NSE.

LUCAS INDIAN SERVICE LTD bought 8,89,042 shares in India Nippon Elect Ltd at Rs 448.50 per share on the NSE.

FASHIONS BRANDS (INDIA) PRIVATE LIMITED sold 1,66,027 equity shares in Shre Push Chem & Fert Ltd at Rs 206.83 per share on the NSE, the bulk deals data showed.

ALGOQUANT FINANCIALS LLP picked up 22,22,565 equity shares in Visagar Polytex Ltd at Rs 1.90 per share respectively on the NSE.

LIMITED TEXMACO RAIL & ENGINEERING sold 10,00,000 shares in Texmaco Infra & Holdg Ltd at Rs 58.41 per share on the NSE.

DII and FII data

Foreign institutional investors (FIIs) sold shares worth a net Rs 2,298.76 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 4,411.60 crore in the Indian equity market on February 15, as per provisional data available on the NSE.

NSE F&O Ban

BHEL, Escorts, Indiabulls Housing Finance, and SAIL are under the F&O ban for February 16. Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.