Informist, Tuesday, Aug 30, 2022
By Vaibhavi
NEW DELHI – Benchmark equity indices staged a strong recovery and recouped all losses from the previous session to end sharply higher today. Broad-based buying across all frontline stocks helped the Nifty 50 close sharply above 17750 points.
The recovery in the market was spearheaded by gains across all key frontline sectors especially financials.
Indices had opened higher tracking the recovery across most Asian markets. Follow up buying in frontline stocks across sectors helped the Nifty 50 surpass multiple resistance levels.
The unexpected sharp rise in the market today was led by covering of short positions by investors and an increase in fund flows following a rebalancing in MSCI global digital asset indices, said Sham Chandak, head – institutional broking, Wilson Financial Services.
Though Indian indices cannot decouple itself from the rest of developed and emerging markets, there is a strong expectation of relative outperformance on the back of improved macroeconomic signs and robust trend in most of the high frequency indicators, said Devang Mehta, head – equity advisory, Centrum Wealth.
The sharp recovery in the market also cooled the "fear-gauge" India VIX down 13% to a low of 17.2575 points. The index eventually ended 5.7% lower at 18.70 points.
Today, the Nifty 50 opened higher and broke multiple resistance levels to hit a high of 17777.65 points before it eventually closed with 2.6% gains at 17759.30 points. The BSE Sensex also ended 2.7% higher from the previous close, at 59537.07 points, after it tested a high of 59599.78 points.
The Nifty 50 and the 30-stock Sensex closed at their all-time highest monthly closing levels.
All the constituents of Nifty 50 ended in the green.
The strong gains in domestic equities also had a positive impact on the Indian rupee as it gained 51 paise against the US dollar today. The Indian unit ended at 79.45 per $1 today.
Financials were the top performers in today's trade and contributed much of the gains for Nifty 50. Housing Development Finance Corp, HDFC Bank, ICICI Bank, IndusInd Bank, Kotak Mahindra Bank, Bajaj Finance and Bajaj Finserv were among the top Nifty 50 gainers as they gained 3.2-5.4%.
The Nifty Bank index ended 3.3% higher today. The Nifty Bank index clocked its highest single-day gains in nearly five months.
The IT pack also witnessed a strong rebound from the sharp correction in the previous session led by bottom fishing at lower levels. The Nifty IT index closed with 2.6% gains.
Hope of strong wholesale sales for August and optimism over demand in the upcoming festival season drove stocks in the automobile space. Tata Motors led gains in the segment and ended 2.6% higher.
Expectations of strong festival demand also lifted shares of jewellery makers higher, with Titan Co, Kalyan Jewellers, and Vaibhav Global rising over 1-6%.
Upstream oil companies also gained tracking a spike in Brent crude prices to near $105 per barrel amid concerns around supply headwinds.
The overall market breadth was positive as over two stock rose for each one that fell.
The broader market also remained buoyant but underperformed the Nifty 50 as all small and mid-cap indices on the National Stock Exchange ended 1.2-2.0% higher.
Within the small-cap space, shares of BLS International Services surged 14% as Nomura Singapore picked up a 0.5% stake in the company through the open market on Monday.
* Among Nifty 50 stocks, all 50 rose
* Among Sensex stocks, all 30 rose
* On the BSE, 2,403 stocks rose, 1,031 fell, and 128 were unchanged
* Nifty Metal: Up 2.1%; Nifty FMCG: Up 2.1%; Nifty Realty: Up 3.5%
BSE National Stock Exchange
Sensex: 59537.07, up 1564.45 pts (2.7%) Nifty 50: 17759.30, up 446.40 pts (2.6%)
S&P BSE Sensitive Index Nifty 50
Lifetime High: 62245.43 (Oct 19, 2021) : Lifetime High: 18604.45 (Oct 19, 2021)
Record Close High: 61765.59 (Oct 18, 2021) : Record Close High: 18477.05 (Oct 18, 2021)
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: 51360.42 (Jun 17) : 2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 61385.48 (Jan 17) : 2022 High (intraday): 18321.55 (Jan 17)
2022 Low (intraday): 50921.22 (Jun 17) : 2022 Low (intraday): 15183.40 (Jun 17)
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 Maheswaran Parameswaran
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