Informist, Monday, Jan 2, 2023
By Padmini Dhruvaraj
MUMBAI – Domestic benchmark indices ended the first trading session of 2023 on a positive note led by a jump in financial and metal stocks, and supported by gains in heavyweight Reliance Industries.
Domestic equities opened with marginal gains amid mixed signals from global equities, but thereafter the Nifty 50 gradually marched towards 18200 levels. After oscillating in a range, both Nifty 50 and the 30-stock Sensex settled 0.5% higher at 18197.45 points and 61167.79 points, respectively.
“Continued buoyancy in the metal and select public sector banks combined with an uptick in realty and non-bank finance counters kept the participants busy,” said Ajit Mishra, vice president of technical research at Religare Broking.
The recent moves by China’s authorities painted the larger picture for today’s trade. Metal stocks surged as the Chinese government’s plans to support the country’s ailing real estate sector sparked hope of a strong demand revival. On the flipside, the pharmaceutical and healthcare stocks fell due to profit booking after rising in the last two weeks amid a spike in COVID cases in China.
Analysts said stocks in the metal space likely rose on news that China plans to raise export tariffs on aluminium to improve domestic demand and help the battered property sector, while the country’s plans to remove the stringent zero-COVID policy aided market share growth for Indian companies.
The Nifty Metal index hit a record high intraday and closed 2.4% higher today. Hindalco Industries and Tata Steel gained 3% and 6%, respectively, and were the top gainers in the Nifty 50 index. However, Jindal Stainless, Hindustan Copper, and Steel Authority of India led gains within the sector as they surged 6-8% higher. MOIL, too, gained 6% as the company’s production and sales rose on month in December.
Pratik Prajapati, a research analyst at Anand Rathi Share and Stock Brokers, said the upward trend in the share prices of steel companies will continue in the medium term as the capital expenditure cycle is already on and domestic demand is also picking up.
Index heavyweight RIL also rose over 1% and contributed 23.96 points to the Nifty 50’s 92.15-point upmove.
Further, the banking pack also made a comeback on likely bargain buying. The Nifty PSU Bank and Nifty Bank rose over 0.5% each on the back of improved credit growth and falling bad loans.
The December sales data of several automobile companies triggered stock-specific moves. While Ashok Leyland and Tata Motors moved higher on the back of strong domestic sales, Bajaj Auto fell due to a 36% on-year decline in its exports in December. Though analysts still remain watchful of the sector, they are positive about growth in the passenger vehicle segment amid expectation of an uptick in rural demand.
The broader indices also succeeded in maintaining the positive tone today by closing nearly 1% higher each.
The only sectoral laggards were defensive sectors. The Nifty Pharma and Nifty Healthcare had shot up since COVID cases surged in China. “As COVID cases in China were increasing, there was a fear that even India will be affected,” said Prashant Tapse, senior vice president of research at Mehta Securities. “Now that it has sinked in that India is better placed in terms of handling a COVID spread, investors are booking profits,” he added.
Stocks of fast-moving consumer durable companies were also among the only few laggards today due to lack of any significant triggers and focus on the quarterly earnings for Oct-Dec, analysts said.
* Among Nifty 50 stocks, 31 rose, 18 fell and 1 was unchanged
* Among Sensex stocks, 21 rose and 9 fell
* On the BSE, 2,306 stocks rose, 1,304 fell, and 178 were unchanged
* Nifty Realty: Up 1%; Nifty Commodities: Up 1.2%; Nifty Pharma: Down 0.4%
BSE National Stock Exchange
Sensex: 61167.79, up 327.05 pts (0.5%) Nifty 50: 18197.45, up 92.15 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)
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 High (intraday): 61222.79 (Jan 2) : 2023 High (intraday): 18215.15 (Jan 2)
2023 Low (intraday): 60764.63 (Jan 2) : 2023 Low (intraday): 18086.50 (Jan 2)
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
Edited by Tanima Banerjee
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