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Monday, January 30, 2023

India Stocks Review: Snap 3-day losing streak, surge on global cues

Informist, Monday, Jan 9, 2023

 

By Padmini Dhruvaraj

 

MUMBAI – Benchmark equity indices today snapped a three-day losing streak, inspired by positive cues from the US market and a run-up in other Asian stocks. Gains in the indices were supported by stocks from sectors such as information technology, automobiles, and financial services. 

 

Both the 30-stock index Sensex and the Nifty 50 closed 1.4% higher at 60747.31 points and 18101.20 points, respectively. 

 

The benchmark indices opened higher and maintained a positive momentum throughout the day. The Nifty 50 index reclaimed its key support level of 18000 points.

 

“Positive undercurrent in global markets had a rub-off effect on local equities, as investors resorted to short-covering after last week’s correction, helping key benchmark indices recapture their psychological levels,” said Shrikant Chouhan, head of equity research at Kotak Securities.

 

Bulls in the US gained the upper hand after a jobs report for December and an economic activity survey fuelled bets that inflation had cooled further and the Federal Reserve’s monetary tightening cycle was about to end. The jobs report showed that average earnings in the US rose only 0.3% in December, against the 0.4% jump seen a month ago. Optimism among investors was further boosted by downbeat US December services activity data, which reflected a contraction in the non-manufacturing purchasing manager’s index in December, the first time in two and a half years. 

 

Naveen Kulkarni, chief investment officer at Axis Securities, said commentary by a key US central bank official, pointing to a 25-bps rate increase in the upcoming policy meeting, also helped sentiment. 

 

Additionally, “with China steadily lifting COVID restrictions, there are hopes that demand may pick up going ahead, which could give breathing space for the markets already battling recession fears, higher interest rate regime, and benign inflation levels,” said Chouhan of Kotak Securities. China reopened its borders with Hong Kong on Sunday, the first time in almost three years, calling it an end to most restrictions under its zero-COVID policy. 

 

Large-cap stocks outperformed in today’s trade as the corporate earnings season for December started, with five Nifty 50 constituents set to detail their earnings this week. However, all the small-cap and mid-cap indices on the National Stock Exchange also closed 0.4-1% higher.

 

Gains in the benchmark indices were due to a surprise recovery in information technology majors. Shares of Tata Consultancy Services rose 3.4% today as investors lapped up the stock after its recent downslide, due to hope of improved earnings, ahead of the announcement of the company’s results for the December quarter. Gains in other major IT heavyweights such as Infosys, Wipro, and HCL Technologies helped the Nifty IT index snap its three-day losing streak and close almost 3% higher. 

 

Apart from the IT pack, stocks in sectors such as metals, oil and gas, and banks also surged. Santosh Meena, head of research at Swastika Investments, said stability in the crude oil basket aided growth in the oil and gas, and energy sectors. Shares of Reliance Industries surged 2.4% today, solely contributing 0.25% to the Nifty 50’s total gains.

 

Among specific stocks, Mahindra & Mahindra closed 3.6% higher and hit a one-month-high of 1,313.90 rupees. The stock surged more after the automaker launched a new range of Thar sports utility vehicles with a rear-wheel drive variant. The stock rose for the third trading session today, gaining around 6% in these three sessions.

 

Vodafone Idea tanked close to 5% to a one-year low of 7.35 rupees, after news reports that a consortium of lenders led by State Bank of India did not grant additional loans to the debt-ridden telecom company.

 

Despite the gains today, some expect the market to turn volatile in the coming days. “Despite the recovery, markets may remain choppy as most of the lingering worries are yet to subside,” said Chouhan. 

 

“Technically, a strong bullish candle on daily charts and promising reversal formation is indicating further uptrend from the current levels. For bulls, 18000 would be the sacrosanct support zone, and above the same, the pullback formation will continue till 18200-18270. On the flip side, below 18000, the uptrend would be vulnerable and the index could retest the level of 17950-17900,” he added. 

 

* Among Nifty 50 stocks, 44 rose and 6 fell

* Among Sensex stocks, 27 rose and 3 fell    

* On the BSE, 2,044 stocks rose, 1,585 fell, and 170 were unchanged

* On the NSE, 1,407 stocks rose, 888 fell, and 440 were unchanged

* Nifty IT: Up 2.83%; Nifty Energy: Up 1.67%; Nifty Consumer Durables: Down 0.46% 

BSE                                              National Stock Exchange
Sensex: 60747.31, up 846.94 pts (1.4%)         Nifty 50: 18101.20, down 241.75 pts (1.4)

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)

2023 1st day close: 61167.79 (Jan 2)            :  2023 1st day close: 18197.45 (Jan 2)
2023 Closing High: 61167.79 (Jan 2)             :  2023 Closing High: 18197.45 (Jan 2)

2023 Closing Low: 59900.37 (Jan 6)              :  2023 Closing Low: 17859.45 (Jan 6)

2023 High (intraday): 61222.79 (Jan 2)          :  2023 High (intraday): 18215.15 (Jan 2)

2023 Low (intraday): 59669.91 (Jan 6)           :  2023 Low (intraday): 17795.55 (Jan 6)

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)

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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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