Informist, Wednesday, Dec 6, 2023
By Anjana Therese Antony
MUMBAI – Benchmark stock indices closed higher for the seventh straight session, after hitting fresh all-time highs in early trade. Analysts attributed the rally to the recent state election results, buying by foreign investors, a drop in US Treasury yields, and hope that the US Federal Reserve will cut key interest rates by early 2024.
Today, both the benchmark indices hit intraday highs and closed at lifetime highs. The Nifty 50 closed 0.4% higher at 20937.70 points and the BSE Sensex ended 0.5% higher at 69653.73 points. Gains in the market were led by shares of fast-moving consumer goods and information technology companies.
Immediate support for the Nifty 50 is pegged at 20700-20650 points and resistance at 21100 points. The index is likely to reach its psychologically important level of 21000 points in the next session.
However, some caution prevails that the market might take a breather in the near term. “… we can’t ignore the possibility of some consolidation now,” Ajit Mishra, senior vice-president of technical research at Religare Broking, said in a post-market note.
Foreign investors turned net buyers in the domestic market in November, which is also boosting sentiment in the market. Flows into Indian equities from overseas investors stood at 90 bln rupees during the month, against an outflow of 245 bln rupees in October, IDBI Capital Markets & Securities said in a research report.
So far in 2023, foreign inflow is seen in sectors such as capital goods, auto, financial services, diversified, consumer services, and healthcare, said IDBI Capital said. The brokerage also added that foreign outflow was observed in information technology, services, and oil and gas.
Today, the broader market was also in the green, with mid-cap and small-cap indices closing 0.2-0.4% higher.
The information technology pack inched higher amid optimism related to the US Fed. L&T Technology Services, Wipro, and LTIMindtree were the top gainers on the Nifty IT index.
Most fast-moving consumer goods stocks also gained. Analysts had expected shares of fast-moving consumer good companies to rise this week, in line with the positive momentum in the overall equity market.
On the other hand, some automobile stocks saw selling pressure. Shares of Bajaj Auto, Eicher Motors, and Hero MotoCorp ended lower after CLSA reportedly downgraded its ratings for these stocks. TV Motor Co also fell after CLSA maintained its ‘sell’ rating on the stock. The brokerage said that the margins on electric two-wheelers are likely to remain challenging in the near term as all original equipment manufacturers are planning to launch more affordable electric scooters.
The financial sector, which was the top performer in the previous session, lost ground today amid the buzz that the Reserve Bank of India may impose additional restrictions on personal loans to mitigate growing risks in the sector. The apex bank is set to announce its decision on key interest rates on Friday, and it is widely expected to keep the rates unchanged.
Among individual stocks, shares of seven Adani Group companies extended gains. Foreign brokerage firm Citi is reportedly positive on Adani Ports and Special Economic Zone, saying that the company continues to increase its dominance in India’s ports and logistics space. Adani Ports also came off highs and closed 0.5% higher.
Stocks of other Adani companies–Adani Wilmar, Adani Power, Adani Energy Solutions, Adani Green Energy, and Adani Total Gas–closed 4-20% higher.
However, shares of Adani Enterprises, which rose significantly in early trade, slipped into losses, possibly due to profit booking, and closed 2.6% lower to become the worst hit on the Nifty 50 index.
Further, shares of Angel One closed 7% higher after the company reported a 3.8% growth in its client base compared to the previous month.
On Thursday, domestic benchmark indices are likely to hit new all-time highs. However, some analysts said that a correction is likely as the market is in an overbought situation.
* Of the Nifty 50 stocks, 29 rose, 20 fell, and 1 was unchanged
* Of the Sensex stocks, 20 rose, 9 fell, and 1 was unchanged
* On the BSE, 1,930 stocks rose, 1,824 fell, and 141 were unchanged
* Nifty Media: Up 2.11%; Nifty IT: Up 1.67%; Nifty Healthcare: Down 0.69%
BSE NSE
Sensex: 69653.73, up 357.59 pts, or 0.5% Nifty 50: 20937.70, up 82.60 pts, or 0.4%
S&P BSE Sensitive Index Nifty 50
Lifetime High: 69744.62 (Dec 6, 2023) : Lifetime High: 20961.95 (Dec 6, 2023)
Record Close High: 69653.73 (Dec 6, 2023) : Record Close High: 20937.70 (Dec 6, 2023)
2023 1st day close: 61167.79 (Jan 2) : 2023 1st day close: 18197.45 (Jan 2)
2023 Closing High: 69653.73 (Dec 6) : 2023 Closing High: 20937.70 (Dec 6)
2023 Closing Low: 59288.35 (Feb 27) : 2023 Closing Low: 17311.80 (Oct 17)
2023 High (intraday): 69744.62 (Dec 6) : 2023 High (intraday): 20961.95 (Dec 6)
2023 Low (intraday): 58699.20 (Jan 30) : 2023 Low (intraday): 17098.55 (Jan 17)
2022 1st day close: 59183.22 (Jan 3) : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 63284.19 (Dec 1) : 2022 Closing High: 18812.50 (Dec 1)
2022 Closing Low: 51360.42 (Jun 17) : 2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 63583.07 (Dec 1) : 2022 High (intraday): 18887.60 (Dec 1)
2022 Low (intraday): 50921.22 (Jun 17) : 2022 Low (intraday): 15183.40 (Jun 17)
2021 Closing High: 61305.95 (Oct 14) : 2021 Closing High: 18338.55 (Oct 14)
2021 Closing Low: 46285.77 (Jan 29) : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14) : 2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29) : 2021 Low (intraday): 13596.75 (Jan 29)-
2020 Closing High: 47751.33 (Dec 31) : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23) : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31) : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24) : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20) : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19) : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28)) : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23) : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26) : 2017 High(intraday): 10515.10 (Dec 26)
End
Edited by Maheswaran Parameswaran
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to [email protected]
© Informist Media Pvt. Ltd. 2023. All rights reserved.
Source: Cogencis
