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India Stocks Review: Recoup most losses but China move dampens mood

Informist, Thursday, Aug 4, 2022

 

By Vidya Sreedhar

 

MUMBAI – Benchmark indices managed to recoup most of the intraday losses and end nearly flat due to strong buying in metal, information technology, and pharmaceutical companies. 

 

But the overall mood was sour which resulted in volatile movements throughout the sessions due to geopolitical tension surrounding China.  

 

The Nifty 50 ended flat at 17382 points but had hit a low of 17161.25 points during the day. Sensex ended 0.1% down at 58298.80 points, sharply off the low of 57577.05 points hit earlier in the day.

 

"…strong buying at lower levels has helped Nifty to sustain its positive closing for 6-7 consecutive days. This shows the underlying strength in the Indian markets despite increasing volatility as well as escalating geopolitical tensions," said Siddhartha Khemka, head – retail research at Motilal Oswal Financial Services.  

 

Intraday, indices fell more than 1% after reports said that China carried out military exercises and live-fire drills around Taiwan's main island.

 

This move by China comes a day after the visit by US House of Representatives Speaker Nancy Pelosi to Taiwan. Chinese officials have expressed anger over the growing diplomatic engagement between Taiwan and the US.

 

China has warned it would take resolute measures to defend its sovereignty and territorial integrity if Pelosi's visit leads to any sort of change in policy towards Taiwan.

 

The rising tensions hurt investors' risk appetite as reflected in the sharp rise in 'fear gauge' India VIX. The volatility index surged more than 14% and hit an over one-month high of 21.06 points, but ended off lows at 19.25 points. 

 

While developments on the China-Taiwan front will be on the investors' radar, the crucial event they are looking forward to is the Reserve Bank of India's monetary policy decision on Friday.  

 

Despite the volatility, stocks in the mid-cap space fared better than the frontline ones. The mid-cap indices on National Stock Exchange ended 0.3-0.5% higher. 

 

Among prominent movers were Kalyan Jewellers, Redington (India) and Infibeam Avenues that surged 6-9% on the back of robust earnings. While Redington and Infibeam shares hit an over one-month high, those of Kalyan Jewellers rose to a nearly seven-month high. 

 

Among laggards, shares of SpiceJet fell 6% due to profit booking after sharp gains in the previous two sessions, and Macrotech Developers ended 6% down as Canada Pension Fund reportedly sold partial stake in the company through block deals today.  

 

* Among Nifty 50 stocks, 23 rose and 27 fell 

* Among Sensex stocks, 16 rose and 14 fell

* On the BSE, 1,553 stocks rose, 1,792 fell, and 131 were unchanged

* Nifty Pharma: Up 2.4%; Nifty IT: Up 1.2%; Nifty PSU Bank: Down 1.7%


BSE                                                 National Stock Exchange
Sensex: 58298.80 points, down 51.73 pts (0.1%)      Nifty 50: 17382.00, down 6.15 pts (0.04%) 


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 Akul Nishant Akhoury

 

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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