Informist, Thursday, Jun 9, 2022
MUMBAI – Benchmark indices ended higher today in an erratic trading session, due to bargain buying after four days of weakness. However, the overall sentiment remained somewhat subdued due to persisting concerns over high crude oil prices and their consequent impact on inflation.
Prices of Brent crude touched $124 a barrel today as concerns over supply mounted as demand for the fuel rose.
Several investment banks, including Bank of America, Morgan Stanley and Goldman Sachs have warned that oil prices could inch even higher towards $130-$140 per barrel in the near term.
This, coupled with caution ahead of the consumer price inflation data from the US, due Friday, prompted investors to refrain from taking aggressive bets.
As a result, domestic indices struggled for direction and remained rangebound for much of today’s session.
However, bargain buying in the last hour of trade across key frontline stocks, including Reliance Industries and other information technology companies, lifted the Nifty 50 and helped it end above 16400 points.
Despite the upmove, analysts recommended against reading too much into the gains as uncertainties around crude prices and inflationary pressures would continue to prevail for some time.
Much of the global inflation right now is dictated by high crude prices as the actions by several central banks is seen resulting in moderation of inflationary pressure from other commodities, said Aishwarya Dadheech, fund manager at Ambit Asset Management.
Higher crude prices for a prolonged period is likely to weigh on inflation as it may even touch new highs rather than peaking out, which won’t sit well with markets, Dadheech added.
Given the wild swings witnessed by benchmark indices in the recent sessions, Nandish Shah, technical and derivatives analyst at HDFC Securities, said that it will be crucial for the Nifty 50 to sustain above 16200 points in the near term.
Today, the Nifty 50 opened lower tracking global cues and touched a low of 16243.85 points, but recovered in the last trading hour to test a high of 16492.80 points. The index eventually ended with 0.7% gains at 16478.10 points.
Similarly, the 30-stock Sensex hit a low of 54507.41 points, but rebounded to touch a high of 55366.84 points and closed 0.8% higher at 55320.28 points.
Major movers in the session included index-heavyweight Reliance Industries that jumped nearly 3% higher on reports that the company, along with a consortium of Apollo Global Management Inc, has made an offer for Walgreen Boots Alliance’s international arm.
Most large-cap IT players also rose around 1% each as a depreciating rupee lifted the value of their foreign inflows. Today, the Indian rupee hit a new lifetime closing low of 77.7650 per dollar.
Pharmaceutical companies, Dr Reddy’s Laboratories and Sun Pharmaceutical Industries also added 3.0% and 1.3%, respectively, as rising coronavirus cases in the country improved sales prospects for their COVID portfolio.
Meanwhile, metal companies were the major laggards as they fell amid concerns of a demand slowdown after China reimposed COVID-related restrictions in some parts of Beijing and Shanghai. The Nifty Metal index ended 1.3% lower today.
Among other stocks, Life Insurance Corp fell over 2% to hit a fresh record low due to concern that the scrip may fall further once the lock-in period for anchor investors expires on Friday. The stock has fallen for eight straight sessions.
* Among Nifty 50 stocks, 38 rose and 12 fell
* Among Sensex stocks, 21 rose and 9 fell
* On the NSE, 1,083 stocks rose, 960 fell and 83 were unchanged
* On the BSE, 1,752 stocks rose, 1,554 fell and 132 were unchanged
* Nifty Metal: Down 1.3%; Nifty IT: Up 1.0%; Nifty Pharma: Up 1.2%
BSE National Stock Exchange
Sensex: 55320.28 points, down 427.79 pts (0.8%) Nifty 50: 16478.10 points, down 121.85 pts (0.7%)
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)
2022 1st day close: 59183.22 (Jan 3) : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 61308.91 (Jan 17) : 2022 Closing High: 18308.10 (Jan 17)
2022 Closing Low: 52792.23 (May 19) : 2022 Closing Low: 15782.15 (May 13)
2022 High (intraday): 61385.48 (Jan 17) : 2022 High (intraday): 18321.55 (Jan 17)
2022 Low (intraday): 52260.82 (Mar 8) : 2022 Low (intraday): 15671.45 (Mar 8)
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)
Edited by Tanima Banerjee
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