Informist, Tuesday, Oct 5, 2021
By Ankika Biswas and Vaibhavi
MUMBAI – The strong inherent resilience in domestic equities helped headline indices leave most of their Asian peers behind today. The Nifty 50 closed above the 17800-point mark with buying at lower levels, which brought about an intraday recovery across most frontline sectors, coupled with sharp gains in index-heavyweight Reliance Industries.
The recent regulatory crackdown in China has turned India into a favourable investment destination for foreign investors, which has aided the latter’s outperformance in comparison to emerging as well as developed markets.
This factor, coupled with the strong outlook for domestic recovery ensured that India remains a sweet spot among its emerging market peers. Even today, most headline indices in Asia closed 0.7-2% lower, compared to Nifty 50’s 0.7% gains.
Today, the 50-stock index closed over 131 points higher at 17822.30 points, after falling to an intra-day low of 17640.90 points. Similarly, the Sensex closed 0.8% higher at 59744.88 points, after testing a low of 59127.04 points during the day.
So far in 2021, Nifty 50 index has surged more than 27%, outperforming benchmark indices in China, South Korea, Singapore, and Taiwan by a wide margin, which have risen 3-12%. The MSCI India index has gained 43% since January 2020, when compared to MSCI Emerging Market index that has risen 12%.
Going forward, the risk of a market correction within the bull market persists, but investors can use such corrections as a buying opportunity, said IDFC Mutual Fund.
In initial trade today, weak global sentiment amid a surge in crude oil prices and bond yields had a spillover effect on domestic equities, as well. Crude oil prices hit multi-year highs on Monday as Organization of the Petroleum Exporting Countries’ decision to raise supply only gradually triggered concerns of supply constraints. This further lifted bond yields and the dollar.
Rise in bond yields usually attract huge capital flows, diverting foreign investors towards the US.
However, even in the presence of such headwinds, the domestic market has not seen any major fall due to the strong economic factors that are keeping the sentiment buoyant, market experts said.
While a surge in global crude oil prices fuelled fears of inflationary pressure denting an economic recovery, they were favourable for shares of oil companies such as Hindustan Petroleum, Indian Oil Corp, Bharat Petroleum and Reliance Industries, which rose 2-4%.
Further, investors accumulating shares of information technology companies ahead of their earnings season also aided the gains in the benchmark index with Tata Consultancy Services, Infosys, Wipro, Mindtree and HCL registering gains of nearly 1-2%. This helped the Nifty IT index to close 1.2% higher at 35544.30 points.
Even the banking pack witnessed a decent recovery, helping the Nifty Bank index close 0.4% higher at 37741 points, after falling to a low of 37364.75 points during the day. The gains came primarily from mid-tier banks like IndusInd Bank and AU Small Finance Bank that rose nearly 4% and 2%, respectively. Bandhan Bank and Federal Bank also rose nearly 1%.
The broader market also fared well in line with the headline Nifty 50, with most small-cap and mid-cap indices on NSE closing 0.4-0.7% higher.
Among laggards, Srei Infrastructure Finance was stuck in a 5% lower circuit as the Reserve Bank of India took over the boards of two group companies and appointed a resolution officer to take the companies into insolvency proceedings owing to default on loan repayments.
* Among Nifty 50 stocks, 29 rose, 20 fell and 1 was unchanged
* Among Sensex stocks, 20 rose and 10 fell
* On the NSE, 1,216 stocks rose, 770 fell and 86 were unchanged
* On the BSE, 2,073 stocks rose, 1,210 fell and 166 were unchanged
* Nifty Energy: Up 2.88%; Nifty IT: Up 1.19%; Nifty Pharma: Down 0.5%
BSE National Stock Exchange
Sensex: 59744.88, up 445.56 pts (0.8%) Nifty 50: 17822.30, up 131.05 pts (0.7%)
S&P BSE Sensitive Index Nifty 50
Lifetime High: 60412.32 (Sep 27) : Lifetime High: 17947.65 (Sep 24)
Record Close High: 60077.88 (Sep 27) : Record Close High: 17855.10 (Sep 27)
2021 1st day close: 47868.98 (Jan 1) : 2021 1st day close: 14018.5 (Jan 1)
2021 Closing High: 60077.88 (Sep 27) : 2021 Closing High: 17855.10 (Sep 27)
2021 Closing Low: 46285.77 (Jan 29) : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 60412.32 (Sep 27) : 2021 High (intraday): 17947.65 (Sep 24)
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)
Edited by Shirsha Thakur
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