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India Stocks Review: Indices rebound, but caution limits upside

Informist, Monday, Sep 19, 2022

 

By Joe Milton

 

MUMBAI – The benchmark indices bounced back today, led by shares of financial services and information technology companies. However, the rise of the indices was checked by selling pressure at higher levels.

 

Largely, investors remained on the back foot due to caution ahead of the US Federal Reserve policy meeting outcome on Wednesday.

 

The Fed is expected to keep raising rates aggressively, which could eventually push the economy into recession, said Mitul Shah, head of research at Reliance Securities.

 

Among technology stocks, Infosys, Tech Mahindra, and Tata Consultancy Services were up on bargain buying.

 

Concerns over recession had led to sell-off in information technology stocks in recent sessions.

 

The Nifty 50 touched an intraday low of 17429.70 points, but managed to recover and close 0.5% higher at 17622.25 points. The Sensex ended 0.5% higher at 59141.23 points.

 

“Markets managed to gain in a volatile trading session, taking a breather after the recent slide. The Nifty 50 index witnessed a swift rebound in the first hour after the initial fall and remained range bound thereafter,” said Ajit Mishra, vice president-research, Religare Broking.

 

Indices shrugged off initial volatility and managed to remain steady for most part of the session as investors continued to accumulate bank stocks.

 

Attractive valuations, improved outlook on credit growth, and asset quality helped heavyweight banks to gain. The Nifty Bank index ended 0.3% higher at 40904.40 points, after touching an intraday high of 41184.25 points.

 

On the stock-specific front, Bajaj Finance closed 3% higher at 7,496.10 rupees after Jefferies India raised the target price to 8,000 rupees from 7,300 rupees considering the strong growth outlook.

 

Investors bought the stock on likely growth in profit should the non-banking finance company get approval from the Reserve Bank of India to issue credit cards.

 

Shares of Mahindra & Mahindra rose after CLSA India said it remains positive on the company’s sales in the upcoming festival season. The brokerage expects the full benefit of the sales on the operating margin from the December quarter. The stock closed at 1,288.65 rupees, up 3.1%.

 

Shares of Advanced Enzymes fell after a large deal was executed on the National Stock Exchange, which saw 2.3 mln shares or 2.03% stake change hands. The stock closed 2.3% lower at 266.80 rupees. 

 

Schaeffler India fell 4% to 3,382.30 rupees after Kotak Institutional Equities downgraded the stock to ‘sell’ from ‘add’ due to high valuation. 

 

“We believe that the strong medium-term growth opportunities are already priced in,” said Kotak Equities. The brokerage has maintained the target price at 2,600 rupees. 

 

In the broader market, investors booked profit in small-cap shares which pushed the index down by about 0.8% on NSE. Mid-cap indices ended flat.

 

* Among Nifty 50 stocks, 18 declined and 32 rose

* Among Sensex stocks, 8 declined and 22 rose

* On the BSE, 1,904 stocks declined, 1,709 rose, and 136 were unchanged

* Nifty FMCG: Up 1.07%; Nifty Auto: Up 0.92%; Nifty Metal: Down 0.45%

BSE                                                 National Stock Exchange
Sensex: 59141.23, up 300.44 pts (0.51%)             Nifty 50: 17622.25, up 91.40 pts (0.52%) 

S&P BSE Sensitive Index                             Nifty 50
Lifetime High: 62245.43 (Oct 19, 2021)           :  Lifetime High: 18604.45 (Oct 19, 2021)
Record Close High: 61765.59 (Oct 18, 2021)       :  Record Close High: 18477.05 (Oct 18, 2021)

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: 51360.42 (Jun 17)              :  2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 61385.48 (Jan 17)          :  2022 High (intraday): 18321.55 (Jan 17)

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 Ashish Shirke

 

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.

 

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Source: Cogencis

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