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Benchmark indices closed marginally higher on Monday amid volatility.
Market opened on a weak note amid global concerns related to the new Omicron variant of coronavirus. Indices recovered from early losses to end marginally higher, led by IT stocks. Multiple counters witnessed heavy selling pressure through the day.
The BSE Sensex closed at 57,260.58, up 153.43 points or 0.27 per cent. It recorded an intraday high of 57,626.51 and a low of 56,382.93. The Nifty 50 closed at 17,053.95, up 27.50 points or 0.16 per cent. It recorded an intraday high of 17,160.70 and a low of 16,782.40.
Over 2,400 stocks decline
Even as benchmark indices ended higher, the market breadth remained in favour of the decliners with 2,435 stocks declining on the BSE as against 966 that advanced while 174 remained unchanged. Furthermore, 437 stocks hit the lower circuit as compared to the 348 stocks that were locked in the upper circuit. Besides, 243 stocks touched a 52-week high level and 91 touched a 52-week low.
The volatility index rose 0.13 per cent to 20.83.
Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers said, “Indian markets opened in red following Asian markets peers as investors across the globe monitored developments around new Covid variant omicron which triggered large sell-off last Friday and muted today's morning trade.”
“During the afternoon session, markets recovered initial losses and maintained their upward momentum following gains in Energy, TECK and IT stocks. Healthy buying was observed in blue-chip stocks,” said Solanki.
Vinod Nair, Head of Research at Geojit Financial Services said, “Global markets traded mixed as investors were torn between buying on dips and the uncertainties over the impact of Omicron on economic recovery. However, the global market has factored well the near-term uncertainty limiting further downside. On the domestic front, the telecom sector was in focus as all sector majors reported a rate hike, signalling an end to the low tariff regime"
Kotak Bank, HCL Tech,HDFC Life, Titan and TCS were the top gainers on the Nifty 50 while BPCL, Sun Pharma, Adani Ports, UPL and NTPC were the top laggards.
The shares of Kotak Bank gained after the announcement that the Reserve Bank of India has given its approval to Life Insurance Corporation of India to raise its stake in Kotak Mahindra Bank to 9.99 per cent. The approval is valid for a period of one year, it further said. LIC currently holds a 4.96 per cent stake in the bank as of September 30.
Kotak Bank closed 2.38 per cent higher on the NSE.
IT in focus
On the sectoral front, all indices except Nifty IT, Nifty Consumer Durables and Nifty Financial Services were in the red. Realty, pharma, PSU Bank, oil & gas and FMCG stocks faced increased pressure.
Nifty IT was up 0.76 per cent at closing while Nifty Consumer Durables was up 0.19 per cent.
Meanwhile, Nifty Realty was down 1.66 per cent while Nifty PSU Bank was down 2.04 per cent. Nifty Pharma and Nifty Healthcare Index closed 1.07 per cent and 0.76 per cent lower, respectively. Nifty FMCG was down 0.59 per cent while Nifty Oil & Gas was down 0.97 per cent.
Broader market under pressure
Midcaps and smallcaps continued to witness increased selling pressure as broader indices closed in the red.
Nifty Midcap 50 was down 1.52 per cent while Nifty Smallcap 50 was down 2.63 per cent. The S&P BSE Midcap was down 0.93 per cent while the S&P BSE Smallcap was down 1.90 per cent.
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