Informist, Monday, Dec 26, 2022
NEW DELHI – Domestic equities witnessed a relief rally today as investors lapped up shares at discounted prices after the sharp correction last week. The strong recovery in the market saw benchmark indices end with over 1% gains. However, it was the broader market that stole the show today.
Today, benchmark indices opened higher led by a largely positive global sentiment that was bolstered after the US personal consumption expenditure price index, the Federal Reserve’s preferred gauge for core inflation, indicated further cooling of price pressures in November.
Further, the University of Michigan’s survey also showed that one-year US inflation outlook dropped to its lowest in 18 months in December, which aided investor sentiment.
An analyst at Angel One also believes that the sell-off last week due to COVID concerns was overdone. Nonetheless, he believes that the correction managed to bring valuations to a reasonable level, which prompted more buying today.
As a result, the Nifty 50 and the BSE Sensex settled at 18014.60 points and 60566.42 points, both up 1.2% from the previous close.
The major push for benchmark indices came on the back of strong gains in banks, metals, and automobile stocks.
The sharp correction in the banking space gave way for an even stronger bargain buying, which lifted shares of banks sharply. Most large-cap banks rose 1-4%, with IndusInd Bank leading the gains. The upmove was even more prominent in public sector banks that surged 4-19%.
As a result, the Nifty Bank index jumped over 2%. The Nifty PSU Bank index saw a much sharper rebound as it shot up over 7% after shedding around 17% in the past seven sessions. The stellar gains in today’s session were due to a sharper decline last week, which pushed the sectoral index into an oversold zone, analysts said.
Even though participation from foreign institutional investors was muted due to Christmas and New Year holidays, strong buying from retail investors, amid cheaper valuations, lifted the shares of public sector undertaking banks, an analyst at a domestic brokerage said.
Other pockets in the broader market also made a sharp recovery today. Consequently, all small and mid-cap indices on the NSE outperformed the Nifty 50 and ended with 2.5-2.5% gains.
Healthcare and pharmaceutical stocks were among the laggards as investors booked profits after expectations of a major COVID-19 wave in India eased. A sharp rise in COVID-19 cases would have boosted the earnings in the sector. Dr Reddy’s Laboratories, Divi’s Laboratories and Cipla fell 1-2%.
On the flipside, shares of Zomato and One97 Communications were up around 8% and 6%, respectively, due to expectations that COVID-19 disruptions could increase the uptake of their services.
The overall market breadth also favoured the gainers as nearly four stocks rose for each one that fell.
* Among Nifty 50 stocks, 40 rose and 10 fell
* Among Sensex stocks, 25 rose and 5 fell
* On the BSE, 2,876 stocks rose, 759 fell, and 133 were unchanged
* Nifty Realty: Up 2.4%; Nifty Auto: Up 1.5%; Nifty Pharma: Down 0.8%
BSE National Stock Exchange
Sensex: 60566.42, up 721.13 pts (1.2%) Nifty 50: 18014.60, up 207.80 pts (1.2%)
S&P BSE Sensitive Index Nifty 50
Lifetime High: 63583.07 (Dec 1, 2022) : Lifetime High: 18887.60 (Dec 1, 2022)
Record Close High: 63284.19 (Dec 1, 2022) : Record Close High: 18812.50 (Dec 1, 2022)
2022 1st day close: 59183.22 (Jan 3) : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 63284.19 (Dec 1) : 2022 Closing High: 18812.50 (Dec 1)
2022 Closing Low: 51360.42 (Jun 17) : 2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 63583.07 (Dec 1) : 2022 High (intraday): 18887.60 (Dec 1)
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 Maheswaran Parameswaran
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