Informist, Friday, Dec 30, 2022
NEW DELHI – Benchmark equity indices ended lower today on the last trading day of 2022 as the sentiment remained weak amid worries that policy tightening by central banks and sticky inflation will continue in the coming year.
Benchmark indices had opened higher as investors drew some comfort from the modest rise in unemployment claims in the US for the week ended Saturday. Despite that, losses in financial and consumer goods stocks weighed on the key indices as they struggle for direction through the session.
The low volumes due to lack of participation from foreign players amid New Year holidays and not so strong global sentiment was the reason behind today’s profit booking, said Rajesh Agarwal, head of research, AUM Capital Market.
The US Federal Reserve’s aggressive rate hike policy, the impact it may have on global growth and the reports of rise in COVID-19 in China have been factors that are also adding weakness to the markets, said Joseph Thomas, head of research, Emkay Wealth Management.
Today, the Nifty 50 and the BSE Sensex settled at 18105.30 points and 60840.74 points, respectively, both down 0.5% from the previous close. However, both the benchmark indices managed to outperform global peers and gained 4% in 2022.
Financials were among the worst performers today as investors took the recent gains as an opportunity to book some profits. ICICI Bank, Housing Development Finance Corp, SBI Life Insurance Co, IndusInd Bank and HDFC Bank slipped 1-2%.
Nonetheless, gains in Bajaj twins cushioned the fall for benchmark indices. Bajaj Finserv rose over 2% and Bajaj Finance gained 1% likely after data on BSE showed that the promoters of both entities, Bajaj Sevashram has bought some shares in the latter earlier this week.
Other major movers included HG Infra Engineering that jumped nearly 8% following an order win from the National Highways Authority of India. Craftsman Automation also notched nearly 8% gains on its plans to acquire a 76% stake in DR Axion India.
While large-caps remained weak, the broader market continued to shine. All small and mid-cap indices on the NSE rose 0.5-0.8%. The rise in broader market can be due to prop-up buying ahead of the quarterly closing of the accounts of domestic and foreign institutional investors, said Vikas Jain, senior research analyst at Reliance Securities.
Shares of Elin Electronics made a dismal debut on the bourses today. The stock extended its listing losses to eventually end around 8% lower.
The global financial markets sailed through rough waters in 2022 as multiple headwinds took investors off guard. The Russia-Ukraine war, soaring inflation, aggressive policy tightening by central banks and its adverse impact on economic growth were all headlines that made rounds through the year.
Domestic equities also got embroiled in the loop of weakening investor sentiment, but India’s strong growth story and consistent buying by domestic institutional investors helped Indian equities outperform their peers. While most global markets are likely to post their worst yearly performance since 2008, domestic benchmark indices were the only ones that managed to scale fresh record highs.
Although Nifty 50 has increased by just 4% in 2022 as against the 24% returns in the year before, it did relatively better, given the challenges faced by major economies around the world, said Mohit Ralhan, chief executive officer, TIW Capital.
In fact, the rise in the benchmark Nifty 50 index came in despite the ruthless selling by FIIs in eight out of the 12 months in 2022. FIIs have offloaded Indian shares worth $18.72 bln in 2022 as of Dec 28.
However, even though India’s growth story remains strong, the majority of fund houses have alarmed caution over subdued returns in 2023, primarily due to expensive valuations in contrast to other emerging market peers. Some spillovers of a recession in developed economies, higher interest rates, reopening of China’s economy and the resurgence of COVID 19 is likely to limit the returns that domestic equities may give in 2023.
* Among Nifty 50 stocks, 21 rose, and 29 fell
* Among Sensex stocks, 11 rose and 19 fell
* On the BSE, 2,150 stocks rose, 1,350 fell, and 132 were unchanged
* Nifty PSE: Up 0.7%; Nifty PSU Bank: Up 1.5%; Nifty Bank: Down 0.6%
BSE National Stock Exchange
Sensex: 60840.74, down 293.14 pts (0.5%) Nifty 50: 18105.30, down 85.70 pts (0.5%)
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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