Informist, Tuesday, Dec 27, 2022
NEW DELHI – China’s decision to further ease its COVID-19 restrictions brought some cheer to the market, helping benchmark indices extend their post-Christmas upmove to the second session today.
On Monday, the China government decided to scrap all quarantine measures, including those for inbound overseas travellers from Jan 8. Along with it, the country will also shift COVID-19 to the lower-threat disease class from Jan 8 which was cheered by investors.
Drawing optimism from an easing of China’s COVID curbs, metal, select automobile and upstream oil companies raked in strong gains and were the biggest contributors to the Nifty 50’s rise today.
“Market is driving some comfort from the absence of any negative news from the global front. Valuations are slightly looking better after the recent spate of corrections, hence investors are resorting to value buying in the run-up to the current month derivatives expiry,” said Shrikant Chouhan, the head of equity research (retail), Kotak Securities, in a note.
Today, benchmark indices shrugged their initial choppiness and extended gains through the session. The Nifty 50 ended 0.7% higher at 18132.30 points while the 30-stock Sensex rose 0.6% to close at 60927.43 points.
Some volatility in the early hours of trade was due to the rollover of positions ahead of the expiry of the December derivatives series on Thursday and lack of participation from foreign institutional investors amid the year-end holidays.
Despite the gains, the Nifty 50 failed to surpass its resistance of 18200 points and, hence, analysts do not believe that the headline index is completely out of the woods yet.
Nonetheless, metal companies glimmered today as an easing of COVID restrictions in the world’s largest metal importing country bolstered demand prospects for the sector. As a result, traders lapped up shares of Hindalco Industires, JSW Steel and Tata Steel, pushing them 4-6% higher.
Strong gains across most constituents also lifted the Nifty Metal index over 4% higher. Upstream oil companies also gained 1-5% tracking a rise in Brent crude prices that rose due to similar reasons.
Select automobile stocks also inched higher, with Tata Motors taking the lead on improved demand prospects for its Jaguar Land Rover arm.
Sentiment was much more robust in the broader market as all small and mid-cap indices on the NSE ended around 1% higher. The overall market breadth also favoured the gainers as nearly three stocks rose for each one that fell.
Among laggards, Laurus Labs fell to a 20-month low intraday after fire broke out at the company’s active pharmaceutical ingredients plant in Visakhapatnam that left four people dead and one critically injured. Shares of Laurus Labs ended nearly 2% lower.
Select consumer goods companies also fell due to profit booking and dragged the Nifty FMCG index into losses.
* Among Nifty 50 stocks, 40 rose, 9 fell and 1 was unchanged
* Among Sensex stocks, 25 rose and 5 fell
* On the BSE, 2,572 stocks rose, 926 fell, and 133 were unchanged
* Nifty IT: Up 0.9%; Nifty PSE: Up 0.8%; Nifty FMCG: Down 0.4%
BSE National Stock Exchange
Sensex: 60927.43, up 361.01 pts (0.6%) Nifty 50: 18132.30, up 117.70 pts (0.7%)
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 Akul Nishant Akhoury
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