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Benchmark indices closed higher after a volatile session on Tueday, led by IT stocks.
Market began on a choppy note amid weak global cues as rising treasury yields are putting pressure on equities across the globe with US Fed expected to hike rates sooner than later. Rising Covid-19 cases have also impacted investor sentiments. Indices closed a volatile session in the green, led by gains in heavyweights such as HDFC.
The BSE Sensex closed at 60,616.89, up 221.26 points or 0.37 per cent, near the day’s high of 60,689.25. It recorded an intraday low of 60,281.52. The Nifty 50 closed at 18,055.75, up 52.45 points or 0.29 per cent. It recorded an intraday high of 18,081.25 and a low of 17,964.40.
Breadth remains positive
The market breadth remained positive with 1,933 stocks advancing on the BSE as against 1,513 that declined while 67 remained unchanged. Furthermore, 773 stocks hit the upper circuit as compared to the 187 stocks that were locked in the lower circuit. Besides, 615 stocks touched a 52-week high level and 7 touched a 52-week low.
Mitul Shah, Head Of Research at Reliance Securities said, “Domestic equities closed higher after volatile session. The market open lower taking negative global cues, and saw buying momentum after initial profit booking seen in the morning trades.”
“US equities continued Southward journey as concerns about Federal Reserve monetary policy dominated the market. The central bank’s monetary policy will remain in focus this week, CPI in the spotlight as markets continue to gauge inflationary pressures and the Fed’s potential response. The benchmark 10-year yield topped 1.8 per cent to reach its highest level since January 2020,” added Shah.
Experts expect volatility to continue. Budget expectation and India Inc quarterly performance will drive individual stock performance moving forward, as per analysts.
Vinod Nair, Head of Research at Geojit Financial Services said, “Domestic benchmark indices showcased a flattish trend with positive bias as the market weighed the expectations of a strong quarter amid concerns over rising cases, supply issue and inflationary pressure.”
“Global market was on the edge as Fed meeting minutes hinted at rate hikes, elevated US inflation and the awaited release of US CPI inflation data. Domestic inflation levels are also likely to be significant due to unfavourable base effect though food prices have declined during December,” added Nair.
HCL Tech, Adani Ports, Tech Mahindra, HDFC and ONGC were the top gainers on the Nifty 50 while JSW Steel, Tata Steel, BPCL, Hindalco and Coal India were the top laggards.
Metals under pressure
On the sectoral front, while realty, IT, oil & gas and financials barring PSU Bank recorded gains, metals and FMCG faced pressure.
Nifty Metal was down 1.90 per cent at closing while Nifty FMCG was down 0.35 per cent.
Meanwhile, Nifty IT was up 1.03 per cent while Nifty Realty was up 0.57 per cent. Nifty Oil & Gas was up 0.28 per cent. Nifty Bank and Nifty Financial Services closed 0.25 per cent and 0.30 per cent higher, respectively while Nifty PSU Bank was down 0.22 per cent.
Broader indices
Broader indices faced pressure.
The Nifty Midcap 50 was up 0.11 per cent at closing while the Nifty Smallcap 50 was down 0.25 per cent. The S&P BSE Midcap was up 0.01 per cent while the S&P BSE Smallcap was up 0.15 per cent.
The volatility index rose 0.45 per cent to 17.76.
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