Despite a weak Asian set-up and rising domestic wholesale inflation, Indian stock markets rose for a fifth straight day on Monday. The Sensex added 935points, while Nifty50 rose 240 points. Strong buying support was seen in IT and banking stocks. The broader markets remained in the green as MidCap added 0.02 per cent and SmallCap was up 0.31 per cent.
Infosys was the biggest gainer on the bourses today as it rose 4 per cent. That apart, HDFC Bank, SBI, Axis Bank, Maruti Suzuki, ICICI Bank, Titan, Wipro, and HDFC were the other star performers today, surging between 2 and 3.5 per cent.
On the downside, ONGC, Indian Oil Corporation, HUL, Tata Motors, Coal India, HDFC Life, JSW Steel, and Sun Pharma were the biggest drags, falling in the range of 1 to 2 per cent.
The broader markets, however, underperformed their large-cap peers by a wide margin. The BSE MidCap and the SmallCap indices added just 0.02 per cent and 0.3 per cent, respectively.
Among individual shares, those of Jubilant FoodWorks plunged 14.6 per cent and hit a fresh 52-week low of Rs 2,444 per share on the BSE in Monday’s intra-day trade as most brokerages downgraded the stock post CEO Pratik Pota’s resignation.
Moreover, shares of One97 Communications, the parent company of digital payments major Paytm, tanked 14.5 per cent to hit a new low of Rs 662 on the BSE in Monday’s intra-day trade after the Reserve Bank of India (RBI) barred Paytm Payments Bank (PPBL) from onboarding new customers with immediate effect because of certain supervisory concerns.
Sectorally, the Nifty Realty index declined the most on the NSE, falling 2 per cent, while the Nifty Bank, Financial Services, and IT indices added 2 per cent each.
Vinod Nair, Head of Research at Geojit Financial Services, said: “We are gaining traction as strategy is shifting from tactical sell to tactical buy. Investments are chipping in as commodities prices are reverting. FIIs selling and crude prices are subsiding, which is expected to continue based on diplomatic developments and provide an edge to the domestic market. Globally, investors are bracing for rate hikes as expected. Domestic WPI has spiked up however the market is ignoring as future prices can get gloomy."
Mohit Nigam, Head - PMS, Hem Securities, said: “As the new week starts investor sentiments will again shift towards the ongoing tussle between Ukraine and Russia. Investors will also be eyeing the rising crude oil prices and their impact on domestic prices and the economy as a whole. It will be interesting to watch when the government will hike the domestic fuel prices."
Wall Street ended a downbeat week with further losses Friday as traders braced for continued economic fallout from Russia’s invasion of Ukraine as well as looming Federal Reserve rate hikes, though European indices saw gains. The Dow Jones Industrial Average fell 229.88 points, or 0.69%, to 32,944.19, the S&P 500 lost 55.21 points, or 1.30 per cent, to 4,204.31 and the Nasdaq Composite dropped 286.15 points, or 2.18 per cent, to 12,843.81.
Asian shares advanced on Monday on hopes for progress in Russian-Ukraine peace talks. While Russian missiles hit a large Ukrainian base near the border with Poland on Sunday, both sides gave their most upbeat assessment yet of prospects for talks. Japan’s Nikkei rose 1.1 per cent, while MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.1 per cent after sliding almost 4 per cent last week.
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