Sensex up by 620 at closing, Nifty ends above 17,100

Our Bureau | | Updated on: Dec 01, 2021
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Metals, auto, financials in focus; pharma, healthcare drag

Market rebounded sharply with benchmark indices ending 1 per cent higher on Wednesday, boosted by metals, financials and auto.

Market opened on a positive note amid mixed global cues. Indices extended early gains, witnessing strong buying across multiple counters, especially financials, metals and auto. Pharma, healthcare and consumer durables witnessed profit-booking.

The BSE Sensex closed at 57,684.79, up 619.92 points or 1.09 per cent. It recorded an intraday high of 57,846.45 and a low of 57,346.78. The Nifty 50 closed at 17,166.90, up 183.70 points or 1.08 per cent. It recorded an intraday high of 17,213.05 and a low of 17,064.25.

Breadth remains positive

The market breadth remained positive even as the benchmark indices closed in the red, with 1,909 stocks advancing on the BSE against the 1,347 that declined, while 136 remained unchanged. Furthermore, 326 stocks hit the upper circuit as compared to the 258 stocks that were locked in the lower circuit. Besides, 167 stocks touched a 52-week high and 20 touched a 52-week low.

Gold, silver return to month-ago levels as Covid variant Omicron fears recede

Further, the volatility index softened 8.12 per cent to dip below 20, closing at 19.45.

Strong macroeconomic data and a recovery in the Asian markets boosted investor sentiments today, according to experts.

Vinod Nair, Head of Research at Geojit Financial Services, said, “After the sharp sell-off in the global markets yesterday, Indian equities reversed their course following recovery in global markets and strong domestic GDP data.”

India’s GDP growth rate for the second quarter touched 8.4 per cent, core sector growth touched 7.5 per cent and the fiscal deficit for seven months came in at 36.3 per cent.

“India’s Q2 GDP recorded a growth of 8.4 per cent as economic activity moved towards normalcy after the impact of the second wave. Though the Fed chair’s [US Fed chief Jerome Powell] comment on speeding up the pace of the bond-buying taper plan kept investors cautious along with concerns over [SARS-CoV-2 virus variant] Omicron, the global markets recovered sharply today,” added Nair.

Asian shares bounce from year low but Omicron, Fed in focus

IndusInd Bank, JSW Steel, Tata Motors, Axis Bank and Adani Ports were the top gainers on the Nifty 50 while Cipla, Divi’s Lab, Ultratech Cement, Dr Reddy’s and Bharti Airtel were the top laggards.

Binod Modi, Head Strategy at Reliance Securities, said, “Domestic equities staged a strong comeback today on strong cues from Asian markets. Further, steady GDP growth in 2QFY22 and fiscal deficit data lifted investors’ sentiments despite the uncertainty pertaining to the Omicron variant.”

“Concerns over the spread of Omicron and the effectiveness of existing vaccines against it have weighed on investors’ sentiment in the last couple of days. However, any positive development with regard to Omicron can generate huge buying interests at these levels. Further, Powell’s recent comment about faster tapering of bond-buying programme in the backdrop of sustained elevated inflation may weigh on sentiments,” Modi added.

Pharma, healthcare, consumer durables under pressure

On the sectoral front, a majority of indices closed in the green. Financials, metals, auto, realty and IT gained while pharma, healthcare and consumer durables remained under pressure.

Nifty Metal was up 2.32 per cent at closing. Nifty Bank and Nifty Financial Services were up 1.88 per cent and 1.28 per cent, respectively. Nifty Private Bank and Nifty PSU Bank were up 1.94 per cent and 2.66 per cent, respectively. Nifty Realty was up 1.45 per cent while Nifty Auto was up 1.46 per cent. Nifty IT was up 1.10 per cent.

Nifty Pharma and Nifty Healthcare Index were down 1.62 per cent and 1.86 per cent, respectively. Nifty Consumer Durables was down 0.43 per cent.

Broader indices

Broader indices also closed in the green.

Nifty Midcap 50 was up 1.42 per cent while Nifty Smallcap 50 was up 0.27 per cent. The S&P BSE Midcap was up 1 per cent while the S&P BSE Smallcap was up 0.27 per cent.

Published on December 01, 2021

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