Informist, Friday, May 20, 2022
By Vivek Kumar
MUMBAI – Sharp swings continued on the Street today as benchmark indices completely recouped Thursday’s losses, which in-turn helped them end the week with around 3% gains. This was the first weekly gains for the benchmark indices in six weeks.
The bounce back seen in Indian equities today was aided by global markets. However, the benchmark indices in India outperformed most of the global equities.
While Nifty 50 and Sensex ended nearly 3% higher today at 16266.15 points and 54326.39 points, respectively, most major markets in Asia and Europe, rose 1-2%. Hong Kong’s Hang Seng jumped 3% as the China’s central bank slashed the five-year loan prime rate—which is a reference rate for mortgages–to 4.45% from 4.6% earlier.
The volatility in the domestic equities, in line with global markets, have been significantly high for some time now amid concerns over aggressive policy actions by central banks amid surge in inflation, and its impact on economic growth.
“As of now, it is a directionless market…. Weaknesses are coming due to global headwinds like increase in interest rates, possibility of a recession and higher inflation,” said Prashanth Tapse, a SEBI-registered research analyst and vice president-research at Mehta Equities.
Investors are also worried about global inflation flowing into domestic inflation, which will have impact on corporates in terms of profitability, Tapse added.
On technical front, analysts believe sharp bounce back today indicates some more gains in the near-term. However, they did not rule out the possibility of volatility continuing.
The fear gauge, India VIX, fell 5% today to close at 23.10 points, as a result of increase in the positions on call side of Nifty 50.
“After a sharp correction, the Nifty 50 eventually took the support near 15750 points level and bounced back sharply…. The reversal formation is likely to continue if the index succeeds to trade above 16000 points,” said Amol Athawale, deputy vice president – technical research at Kotak Securities.
Among sectors, Nifty Bank ended nearly 3% higher, while Nifty Metal jumped over 4%, largely recovering their Thursday’s losses. The Nifty IT index ended 1.5% higher, after having fallen close to 6% on Thursday.
Fast-moving consumer goods companies also rose today following news reports that Indonesia will be lifting the ban on palm oil exports from Monday. On Apr 28, the country had announced a ban on the export of the commodity, triggering concerns over raw material shortage, and hence possibility of pressure on margins for FMCG companies.
Among specific stocks, heavyweight Reliance Industries jumped 6% amid buzz in the market that the oil-to-telecom conglomerate may hold its annual general meeting on Jun 15, and there could be some announcement on demerger front.
Shares of Dr Reddy’s Laboratories surged over 8%, and were the top gainers on the Nifty 50, as positive views from brokerage firm post the company’s March quarter earnings on Thursday, aided the stock.
Equitas Small Finance Bank was among the few laggards in the market today as the stock slumped nearly 12% on news of P.N. Vasudevan resigning as managing director and chief executive officer.
* Among Nifty 50 stocks, 48 rose and 2 fell
* Among Sensex stocks, all 30 rose
* On the NSE, 1,699 stocks rose, 370 fell and 55 were unchanged
* On the BSE, 2,497 stocks rose, 777 fell and 144 were unchanged
* Nifty Auto: Up 2.8%; Nifty Media: Up 4.5%; Nifty FMCG: Up 2.1%
BSE National Stock Exchange
Sensex: 54326.39 points, down 1534.16 pts (2.89%) Nifty 50: 16266.15 points, up 456.75 pts (2.91%)
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)
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: 52792.23 (May 19) : 2022 Closing Low: 15782.15 (May 13)
2022 High (intraday): 61385.48 (Jan 17) : 2022 High (intraday): 18321.55 (Jan 17)
2022 Low (intraday): 52260.82 (Mar 8) : 2022 Low (intraday): 15671.45 (Mar 8)
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
With inputs from Ankika Biswas
Edited by Maheswaran Parameswaran
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