Informist, Wednesday, Oct 12, 2022
NEW DELHI – Domestic benchmark equity indices equities today snapped a three-day losing streak, as investors bought shares of financial and consumer goods companies. The recent correction in the market has made the valuations of stocks in these sectors attractive, which prompted investors to accumulate them at lower levels today, analysts said.
The resilience in the Indian market was supported by retail investors, who turn active when the benchmark indices slip to lower levels, said Aditya Agarwala, head of research and investment at Invest4edu. It is this relentless support from retail investors that has shielded the domestic market from a sharp correction, unlike many of its peers, Agarwala said.
The outperformance of Indian equities was visible in today’s trade as well. While domestic benchmark indices closed higher, most of their counterparts in Asia ended lower, while those in Europe remained subdued.
Even though the market breadth was largely positive, underlying caution prevailed ahead of the release of key macroeconomic indicators, like data on domestic retail inflation in September, due after market hours today, and US consumer price inflation, slated to be released later this week.
Market participants await the crucial domestic inflation data for September, as it will guide the Reserve Bank of India’s next Monetary Policy Committee decision.
Minutes of the Federal Reserve’s latest monetary policy meeting, due later today, kept investors away from aggressively taking fresh positions and limited the upmove.
Today, the Nifty 50 opened higher and extended its gains throughout the session. The headline index even surpassed 17100 points to eventually ended 0.8% higher at 17123.60 points.
Similarly, the 30-stock Sensex closed with 0.8% gains at 57625.91 points, after climbing to a high of 57687.64 points.
As concerns around a recession across advanced economies gathers pace, fund managers churned their portfolios and added fresh bets in defensive sectors such as consumer goods since these are less prone to recessionary risks. This helped consumer goods companies ITC, Tata Consumer Products, Hindustan Unilever, Britannia Industries, Nestle India and Dabur India notch 1-3% gains.
Financial stocks also rebounded as the recent correction improved their valuations. Shares of Axis Bank, IndusInd Bank, Housing Development Finance Corp, State Bank of India, Bajaj Finserv, HDFC Bank and HDFC Life Insurance Co rose 1-3%.
As financials hold nearly 37% weightage in the Nifty 50, gains in the sector aided the upmove for the headline index.
Shares of oil marketing companies, Hindustan Petroleum Corp, Indian Oil Corp and Bharat Petroleum Corp also rose on reports that the government might approve a one-time compensation for liquefied petroleum gas, or cooking gas, in its Cabinet meeting today.
Among the notable laggards, Asian Paints and Adani Enterprises fell prey to booking after notching strong gains in recent sessions.
* Among Nifty 50 stocks, 36 rose, 14 declined
* Among Sensex stocks, 25 rose, 5 declined
* On the BSE, 1,688 stocks rose, 1,752 declined, and 131 were unchanged
* Nifty PSE: Up 1.4%; Nifty Bank: Up 1.1%; Nifty Realty: Up 1.6%
BSE National Stock Exchange
Sensex: 57625.91, up 478.59 pts (0.8%) Nifty 50: 17123.60, up 140.05 pts (0.8%)
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)
Edited by Avishek Dutta
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