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India Stocks Review: Up for 3rd day; IT, auto cos gain

Informist, Monday, May 30, 2022

 

By Abhishek Saini

 

MUMBAI – The benchmark share indices closed higher for the third session today as positive global cues lifted market sentiment. The Nifty 50 index closed above the 16600-mark–its highest level in over three weeks–on gains across frontline sectors.

 

"With clarity emerging from last week's US FOMC meeting about another 50 basis points rate hike in the next few months, the market seems to be taking in its stride the future rate hikes and the bearish trend is now seen reversing," said Shrikant Chouhan, head of equity research at Kotak Securities.

 

"Even though fears of global recession and further rise in crude oil prices lurk, investors are currently engaged in buying after the recent fall," Chouhan added.

 

As a result, previously beaten-down sectors like automobile and information technology have gained on covering of short positions and aided the gains in headline indices.

 

After opening 1% higher, the Nifty 50 managed to comfortably cross 16600 points and sustain the gains throughout the day. Although it struggled to breach 16700 points, market participants see a close above 16400 points crucial for the index to extend gains till around 17000 points in the near-term.

 

The index ended 1.9% higher at 16661.40 points, slightly off its intraday high of 16695.50 points.

 

Including today's gains, the Nifty 50 has risen nearly 4% over the last three sessions.

 

The 30-stock Sensex rose 1.9% and closed at 55925.74 points, after touching an intraday high of 56082.65 points.

 

The fear gauge, India VIX, continued to cool down and fell 7% to close at 19.9800. The volatility gauge has fallen 22% over the past four sessions.

 

Among frontline sectors, information technology took centrestage. Having fallen nearly 10% during the month, the Nifty IT index saw a sharp pull back today due to short covering by traders, market participants said.

 

All the constituents in the index closed in the green and ensured the Nifty IT index ended nearly 4% higher.

 

The Nifty Bank index, which outperformed the headline indices last week, underperformed them today. Key constituent Kotak Mahindra Bank ended lower, and the overall index ended just 0.6% higher.

 

Shares of automobile companies were led higher by Mahindra & Mahindra and Tata Motors. The former rose on the back of robust quarterly results, while the latter was buoyed by the acquisition of Ford Motor's Sanand plant. The Nifty Auto index gained 2%.

 

The broader market was in sync with headline indices, with the mid-cap and small-cap indices on the National Stock Exchange rising 2-3%.

 

In stock-specific action, the market reacted positively to the sale of 32 brands by United Spirits to Inbrew Beverages, and the stock ended nearly 6% higher. 

 

Among the laggards, Natco Pharma gave up gains and ended 2% lower on reporting a consolidated loss in Jan-Mar.

 

The debut of Ethos Ltd was unimpressive. After listing at a discount of 6% on NSE, the shares extended losses and ended 8.5% lower at 803.10 rupees.

 

* Among Nifty 50 stocks, 45 rose and 5 fell

* Among Sensex stocks, 26 rose and 4 fell

* On the NSE, 1,569 stocks rose, 531 fell and 65 were unchanged

* On the BSE, 2,368 stocks rose, 1,091 fell and 156 were unchanged

* Nifty Auto: Up 1.96%; Nifty IT: Up 3.88%; Nifty Bank: Up 0.6%


BSE                                                National Stock Exchange
Sensex: 55925.746 points, up 1041.08 pts (1.9%)    Nifty 50: 16661.40 points, up 308.95 pts (1.9%)


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

 

Edited by Ashish Shirke

 

Cogencis news is now Informist. 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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