India Stocks Review: Nifty 50 ends above 17400 despite Omicron fears

Informist, Thursday, Dec 2, 2021

By Vaibhavi and Joe Milton

MUMBAI – Domestic benchmark indices rose for the second session and managed to sustain the gains throughout the day, helping the Nifty 50 end above the 17400-level after four sessions. The upmove was led by information technology and financial services companies.

However, the market did not completely emerge from worries around Omicron, the new coronavirus variant, its impact and the efficacy of drugs against it. 

The UK’s Medicines and Healthcare products Regulatory Agency today approved sotrovimab, an antibody treatment used to treat mild to moderate COVID-19 disease for high-risk patients, developed by GlaxoSmithKline Plc and Vir Biotechnology Inc.  

The regulator’s claim that a single dose of sotrovimab was found to have reduced the risk of hospitalisation and death by 79% in high-risk adults with symptomatic COVID-19 infection during clinical trials, also provided some relief to investor sentiment.

Today, the headline Nifty 50 and the 30-stock Sensex ended 1.4% higher each at 17401.65 and 58461.29 points, respectively.

Gains in the market were broad based as the Nifty 50 stood above the 17300-mark for the better part of the trade today.

Even as all major sectoral indices ended the day’s trade in green, the upmove in information technology and financial services sector remained in focus.

Gains in almost all financial services companies provided much support to the Nifty 50’s upmove. Index heavyweight Housing Development Finance Co was the major gainer within the sector as it rose nearly 4% today.

Other large-cap constituents – SBI Life Insurance Co, Bajaj Finserv, Bajaj Finance, HDFC Bank, and HDFC Life Insurance Co ended 1.7-3.9% higher.

Strong buying interest continued within the information technology pack as investors bought stocks at lower levels, lifting the Nifty IT index to be the biggest gainer among sectoral indices and end 2% higher at 36157.85 points.

All Nifty 50 information technology majors, Infosys, Tata Consultancy Services, Wipro, Tech Mahindra and HCL Technologies closed the day 2-3% higher.  

Apart from heavyweights, mid-cap and small-cap stocks too came under the buying radar of investors as their risk appetite improved as headline indices staged a strong pull back. All the small-cap and mid-cap indices in NSE ended 0.5-1.3% higher, slightly underperforming the headline indices. 

The broader market was in favour of bulls as three stocks rose in NSE for each fall. 

On the stock-specific front, BSE Ltd surged over 17% and touched its all-time high of 1,939 rupees on rumours that NSE Ltd has received approval from Securities and Exchange Board of India to refile its prospectus for listing.

The initial public offer of NSE Ltd could be rolled out in next few weeks, as reported by The Hindu BusinessLine. Initial public offer from NSE could be India’s biggest and is likely to be valued at over 2 trln rupees, the report added. 

This has a rub-off effect on other listed exchanges, and shares of BSE Ltd, Multi Commodity Exchange, and Central Depository Services India ended 4-15 % higher. 

Apart from this, Greaves Cotton surged on strong demand outlook for e-vehicles from the management. The stock closed at 158.75 rupees, up 12.8%. 

Shares of Gujarat Fluorochemicals surged nearly 16% and touched its all-time high of 2,387.80 rupees as brokerage ICICI Securities initated coverage on the company with strong growth outlook.

The brokerage has a “buy” rating on the stock with a target price of 3,086 rupees, which implies over 30% upside from today’s closing price of 2,315.35 rupees. 

Among laggards were Axis Bank and ICICI Bank, as they ended about 0.5% lower each. Within small-cap and mid-ap stocks, Spandana Sphoorty Financial, Trident Ltd, Inox Leisure, Linde India, and Mactotech Developers ended 3-6% lower. 

* Among Nifty 50 stocks, 47 rose and 3 fell 

* Among Sensex stocks, 27 rose and 3 fell

* On the NSE, 1,432 stocks rose, 571 fell and 62 were unchanged

* On the BSE, 2,185 stocks rose, 1,065 fell and 150 were unchanged

* Nifty Realty: Up 0.55%; Nifty FMCG: Up 1.16%; Nifty Metal: Up 1.56%

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BSE                                             National Stock Exchange
Sensex: 58461.29, up 776.50 pts (1.35%)         Nifty 50: 17401.65, up 234.75 pts (1.37%) 

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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)

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End

Edited by Pranav S. Joshi

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