Informist, Friday, Sep 30, 2022
By Vaibhavi
NEW DELHI – The domestic equity market finally recorded gains today, after sharp losses in the last seven days, as lack of any negative surprises from the Reserve Bank of India’s monetary policy review boosted sentiment.
The RBI’s policy review was along the Street’s expectations, as the central bank hiked the repo rate by 50 basis points. It also retained its forecast for inflation at 6.7%, but slightly scaled down its GDP growth estimate for 2022-23 (Apr-Mar) to 7.0% from 7.2%.
However, it was RBI Governor Shaktikanta Das’ positive comments on economic indicators that brought about gains for the domestic market. Positive macroeconomic indicators such as strong credit growth, low external debt-to-GDP ratio, expectations of an increase in liquidity, and an uptick in rural demand, which led to RBI’s confidence on the Indian economy, also cheered investors.
While there was a growing concern among investors about the drop in forex reserves, the RBI governor’s clarification that much of it was due to the valuation changes arising out of an appreciating dollar and higher bond yields, soothed sentiment, said Sandeep Bhardwaj, chief executive officer, IIFL Securities.
“Though the depreciating rupee is the biggest headwind at present, we expect that economic activity and India’s outperformance on most parameters of growth would instil positivity in the market in second half of 2022-23 (Apr-Mar),” said Mitul Shah – head of research, Reliance Securities.
Today, the Nifty 50 felt jitters in early trade, hitting a low of 16747.70 points, before the policy outcome. Post the policy announcement, the headline index rose sharply to hit a high of 17187.10 points, before closing 1.6% higher at 17094.35 points.
The 30-stock Sensex had also fallen to a low of 56147.23 points, but recouped losses and hit a high of 57722.63 points. The index ended 1.8% higher at 57426.92 points.
Almost all major frontline sectors contributed to the sharp gains for the benchmark indices, but it was financials and metals that turned out to be prominent gainers. Shares of banks rebound sharply after being battered in the past seven sessions as a repo rate hike, expectations of an increase in liquidity, and a strong credit growth scenario bode well for the sector.
The Nifty Bank index ended 2.6% higher at 38631.95 points.
IndusInd Bank, Bajaj Finance, Kotak Mahindra, HDFC Bank, and Bajaj Finserv jumped 2-4%.
The metals pack was another prominent gainer in today’s trade. Shares of metal companies climbed higher due to a bounceback in the broader market and a sudden spike in base metal prices after an unexpected increase in China’s manufacturing activity.
Gains in the sector were spearheaded by Hindalco Industries, which soared over 5% on brokerage firm CLSA’s positive comments that clarity on arm Novelis’ outlook and a rise in metal prices may drive re-rating for the stock.
Most other metal stocks rose 2-5%, which lifted the Nifty Metal index 2.2%.
On the other hand, select defensive stocks such as Britannia Industries, ITC, Dr Reddy’s Laboratories, Apollo Hospitals Enterprise and Hindustan Unilever fell prey to profit booking and ended lower.
The broader market also rebounded, along with the headline indices. All small- and mid-cap indices on the NSE ended 1-2% higher.
* Among Nifty 50 stocks, 41 rose, 9 declined
* Among Sensex stocks, 25 rose, 5 declined
* On the BSE, 2,335 stocks rose, 1,107 declined, and 96 were unchanged
* Nifty Financial Services: 2.2%; Nifty Media: 1.5%; Nifty MNC: Up 1.2%
BSE National Stock Exchange
Sensex: 57426.92, down 1016.96 pts (1.8%) Nifty 50: 17094.35, down 276.5 pts (1.6%)
S&P BSE Sensitive Index Nifty 50
Lifetime High: 62245.43 (Oct 19, 2021) : Lifetime High: 18604.45 (Oct 19, 2021)
Record Close High: 61765.59 (Oct 18, 2021) : Record Close High: 18477.05 (Oct 18, 2021)
2022 1st day close: 59183.22 (Jan 3) : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 61308.91 (Jan 17) : 2022 Closing High: 18308.10 (Jan 17)
2022 Closing Low: 51360.42 (Jun 17) : 2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 61385.48 (Jan 17) : 2022 High (intraday): 18321.55 (Jan 17)
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
Edited by Avishek Dutta
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