Informist, Wednesday, Dec 1, 2021
By Joe Milton and Vaibhavi
MUMBAI – Domestic equities staged a comeback today, tracking global peers, but investors closely watched COVID-19 vaccine developments against the Omicron variant of the virus.
Market participants took calculative bets today after US Federal Reserve Chairman Jerome Powell said that officials may discuss increasing the pace of bond purchase tapering, in rhe policy meeting scheduled to start on Dec 14.
Investors preferred to accumulate fundamentally strong stocks, which helped the Nifty 50 index sustain above 17100 points.
Today, the 50-stock index closed 1.1% higher at 17166.90 points, and managed to surpass 17200 points briefly. Correspondingly, BSE-Sensex ended at 57684.79 points, up 1.1%, after touching an intraday high of 57846.45 points.
The Nifty 50 has declined by 9% from its all-time high of 18604.45 points, and there is a strong support in range of 16700-16800 levels, said Vikas Jain, senior research analyst at Reliance Securities. “In the past in Aug 2020 and Apr 2021, we have bounced strongly after a 9% correction from their highs, so the current support holds good,” he added.
Analysts see today’s gain in headline indices as an intermittent bounce back, and they expect the Nifty 50 to close decisively above 17500 points for more strong buying to kick in.
More than half the gains in Nifty 50 were contributed by financial companies and strong buying in Reliance Industries. Gains in frontline banks on bargain buying helped Nifty Bank index snap its four-day losing streak and close 1.9% higher at 36364.90 points.
Today, Nifty Bank index bounced back after falling below its 200-day moving average on Tuesday. Analysts expect the index to face hurdles at 37000 points.
Shares of Reliance Industries gained 2.6% and closed at 2,467 rupees as investors preferred to accumulate the heavyweight stock at lower levels. Analysts expect the stock move towards 2,500 rupees level.
The focus today was on the shares of automobile companies, as investors closely tracked their November wholesales data.
Shares of Maruti Suzuki and Tata Motors ended 3.6% and 2.9% higher respectively, as November wholesale numbers for these companies have risen on year. On the back of this, Nifty Auto index closed 1.5% higher at 10758.15 points, and was one of the top performers among sectoral indices.
Continued defensive buying in the information technology pack lifted the sector for the third session. The Nifty IT index closed 1.1% higher at 35428.95 points today, further supporting the upmove in Nifty 50.
Though nearly all constituents of the sector ended positive, HCL Technologies, Mphasis, Tata Consultancy Services and Tech Mahindra were the top gainers, up 1-4%.
However, recovery in the small-caps and medium-caps lagged behind the headline index as investors chose to place bets on fundamentally stronger large-cap stocks. All major small-cap and mid-cap indices on the NSE ended 0.1-1% higher.
Among laggards, Nifty Pharma was the sole loser among sectoral indices as it shed gains on profit booking, and ended 1.6% lower today at 13442.10 points. Cipla, Glenmark Pharmaceuticals and Alkem Laboratories shed the most as they fell more than 4% each.
* Among Nifty 50 stocks, 34 rose and 16 fell
* Among Sensex stocks, 22 rose and 8 fell
* On the NSE, 1,200 stocks rose, 792 fell and 72 were unchanged
* On the BSE, 1,909 stocks rose, 1,347 fell and 136 were unchanged
* Nifty Bank: Up 1.9%; Nifty Auto: Up 1.5%; Nifty Pharma: Down 1.6%
BSE National Stock Exchange
Sensex: 57684.79, up 619.92 pts (1.09%) Nifty 50: 17166.90, up 183.70 pts (1.08%)
S&P BSE Sensitive Index Nifty 50
Lifetime High:62245.43 (Oct 19) : Lifetime High: 18604.45 (Oct 19)
Record Close High: 61765.59 (Oct 18) : Record Close High: 18477.05 (Oct 18)
2021 1st day close: 47868.98 (Jan 1) : 2021 1st day close: 14018.5 (Jan 1)
2021 Closing High: 61765.59 (Oct 18) : 2021 Closing High: 18477.05 (Oct 18)
2021 Closing Low: 46285.77 (Jan 29) : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 62245.43 (Oct 19) : 2021 High (intraday): 18604.45 (Oct 19)
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 Pranav S. Joshi
Cogencis news is now Informist. 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 (11) 4220-1000
Send comments to [email protected]
© Informist Media Pvt. Ltd. 2021. All rights reserved.