Informist, Monday, Nov 1, 2021
By Vivek Kumar
MUMBAI -Domestic equities shrugged aside concerns over stretched valuations and witnessed a sharp bounce back today after last week’s correction, as investors remained optimistic about India’s long-term growth prospects.
A broad-based recovery helped the benchmark indices close around 1.5% higher, after they fell 5% from their lifetime highs in the last couple of weeks. The Nifty 50 and Sensex closed at 17929.65 points and 60138.46 points, respectively.
Indian equities have outperformed global markets and valuations will remain rich, as India has a multi-year growth story ahead owing to its large population, export opportunities and structural reforms, said Ashish Chaturmohta, director (research) at Sanctum Wealth Management.
A healthy correction will make the market ready for the next leg of upmove, Chaturmohta said. However, he added that it is too early to say whether the correction is over.
Data showed that manufacturing activity in India hit an eight-month high of 55.9 in October. Goods and Services Tax collections during the month were the second-highest ever at 1.3 trln rupees. These factors supported the gains in local equities today.
SECTORS & STOCKS
The bounce back was broad-based with 46 of the Nifty 50 companies ending higher. However, the gains were more prominent in financial services and information technology companies.
Among financial services companies, IndusInd Bank’s shares soared 8% and were the top gainers on Nifty 50, while Housing Development Finance Corp ended with 1.5% gains as the company reported better-than-expected numbers for the quarter ended September.
Shares of Axis Bank, HDFC Bank, Kotak Mahindra Bank and State Bank of India also rose 1-3% and helped the Nifty Bank index to close 1.7% higher.
Information technology companies also witnessed a sharp rebound with shares of Wipro, Infosys, Tata Consultancy Services, Tech Mahindra and HCL Technologies rising 1-4%.
Among other sectors, shares of telecom companies were the major movers during the day. Reliance Industries pared its day’s gains and ended flat today even as the company said its JioPhone Next will be available from Nov 4.
Kotak Institutional Equities believes that Jio’s plan to launch its own smartphone is less attractive than Bharti Airtel’s cashback schemes offered on a variety of smartphones. This likely aided gains in the shares of Bharti Airtel and Vodafone Idea today.
Bharti Airtel’s shares ended the day 4% higher on expectations of strong earnings from the company on Tuesday and rollout of fifth-generation pilot services for enterprises.
Stock-specific action was also prominent in the automobile sector today with a host of companies releasing their wholesale despatch figures for October. The Nifty Auto index ended 1% higher.
The broader market too witnessed strong recovery today, with real estate companies topping the charts after data showed that property registrations in Mumbai during October surpassed the levels of corresponding month last year despite a rebate in stamp duty during that time.
Mid-cap and small-cap indices on the NSE ended 0.8-2.0% higher. Steel Authority of India, Lux Industries and Oberoi Realty rose today amid strong Jul-Sep earnings, while UPL, Rossari Biotech, Nazara Technologies and Whirlpool of India fell.
Shares of Indian Railway Catering and Tourism Corp also recovered the day’s losses and ended over 1% higher after the company reported a five-fold jump in its bottomline for Jul-Sep.
* Among Nifty 50 stocks, 46 rose and 4 fell
* Among Sensex stocks, 26 rose and 4 fell
* On the NSE, 1399 stocks rose, 596 fell and 68 were unchanged
* On the BSE, 2171 stocks rose, 1137 fell and 193 were unchanged
* Nifty Metal: Up 3.1%; Nifty Bank: Up 1.7%; Nifty IT: Up 2.6%
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BSE National Stock Exchange
Sensex: 60138.46, up 831.53 pts (1.4%) Nifty 50: 17929.65, up 258 pts (1.5%)
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S&P BSE Sensitive Index Nifty 50
Lifetime High:62245.43 (Oct 19) : Lifetime High: 18604.45 (Oct 19)
Record Close High: 61765.59 (Oct 18) : Record Close High: 18477.05 (Oct 18)
2021 1st day close: 47868.98 (Jan 1) : 2021 1st day close: 14018.5 (Jan 1)
2021 Closing High: 61765.59 (Oct 18) : 2021 Closing High: 18477.05 (Oct 18)
2021 Closing Low: 46285.77 (Jan 29) : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 62245.43 (Oct 19) : 2021 High (intraday): 18604.45 (Oct 19)
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
Edited by Pranav S. Joshi
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