Informist, Monday, May 22, 2023

By Anjana Therese Antony

MUMBAI – Significant gains in shares of Adani Group companies, along with gains in information technology stocks, pulled the market from early losses and pushed it higher throughout the session. Adani Group companies' stocks gained for the second straight session after a panel appointed by the Supreme Court said it did not find 'regulatory failure' around allegations of price manipulation in the group's stocks and violation of minimum shareholding rules. 

Due to this, shares of Nifty 50 constituents Adani Enterprises and Adani Ports and Special Economic Zone together contributed to 0.2% of gains in the 50-stock index. Shares of Adani Enterprises hit their three-month high during the day and closed a whopping 19% higher at 2,326 rupees. The stock was the top gainer in Nifty 50, Nifty 200, and Nifty 500 indices. Adani Ports' stock hit a four-month high during the day and ended 6% higher at 729.70 rupees.

These stocks, along with shares of other five companies under the Adani Group, rose for the second straight session after the apex court panel's report. Adani Power, Adani Total Gas, and Adani Transmission hit their 5% upper circuits and closed at the same levels. Other companies in which the conglomerate has major shares--Ambuja Cements, New Delhi Television, and ACC--closed 5% higher each.

Additionally, the sentiment was also boosted likely by media reports that the apex court's report, coupled with the recoveries in the group companies' shares since February, can aid the conglomerate's plan to raise 210 bln rupees through sale of shares in Adani Enterprises and Adani Transmission. 

With respect to IT shares, analysts attributed gains in these stocks to regular "small trading moves" and said today's uptrend is "not a directional indicator". Shares of Infosys, Tata Consultancy Services, HCL Technologies, Wipro, and Tech Mahindra closed 1.7-3.2% higher. IT stocks contributed to nearly 0.3% gains in the 50-stock index. 

Bucking the trend, shares of banks and financial services limited gains and were the worst hit among sectoral indices. Nifty Financial Services, Nifty Bank, and Nifty Private Bank closed 0.2-0.3% lower.

About 12 Nifty 50 constituents closed near or above 2% higher. Nifty 50 closed 0.6% higher at 18314.40 points and Sensex ended 0.4% higher at 61963.68 points. The immediate support for Nifty 50 for Tuesday is 18200 points, while resistance is 18500 points. Analysts expect the index to open higher on Tuesday on the back of today's momentum. Some analysts said the 50-stock index may reach near 18450 points by the end of this week.

The broader market also stood in par with Nifty 50. Mid-cap and small-cap indices closed 0.4-0.7% higher. 

A number of stock-specific reactions were also observed today amid the Jan-Mar earnings season. Despite weak earnings reported for the quarter, Nifty 50 company Divi's Laboratories closed 5.4% higher as the company said it expects the gross margin to return to 60% by the end of the current financial year which is higher than the current 25%. The company has faced severe margin pressure in the past three quarters due to high base effect of COVID-19-related products in the previous year.

Among other stocks, Balaji Amines closed 6% lower, and Cochin Shipyard ended down 10%, as these companies reported weak earnings for the March quarter. 

Shares of Bank of Maharashtra may also be in focus as the stock will trade ex-dividend on Tuesday.

On Tuesday, Indian equities are expected to spill over today's momentum. Investors are likely to focus more on domestic triggers than global cues. 

* Of the Nifty 50 stocks, 23 rose, 26 fell, and 1 was unchanged

* Of the Sensex stocks, 18 rose, 10 fell, and 2 were unchanged

* On the BSE, 1,770 stocks rose, 1,847 fell, while 171 were unchanged

* Nifty Metal: up 3.19%; Nifty IT: up 2.49%; Nifty Private Bank: down 0.26%

BSE                                                NSE
Sensex: 61963.68, up 234.00 pts or 0.38%          Nifty 50: 18314.40, up 111.00 pts or 0.61%

S&P BSE Sensitive Index                            Nifty 50
Lifetime High: 63583.07 (Dec 1, 2022)           :  Lifetime High: 18887.60 (Dec 1, 2022)
Record Close High: 63284.19 (Dec 1, 2022)       :  Record Close High: 18812.50 (Dec 1, 2022)

2023 1st day close: 61167.79 (Jan 2)            :  2023 1st day close: 18197.45 (Jan 2)
2023 Closing High: 62345.71 (May 15)            :  2023 Closing High: 18398.85 (May 15)

2023 Closing Low: 59288.35(Feb 27)              :  2023 Closing Low: 17311.80 (Oct 17)

2023 High (intraday): 62562.67 (May 15)         :  2023 High (intraday): 18458.90 (May 15)

2023 Low (intraday): 58699.20 (Jan 30)          :  2023 Low (intraday): 17098.55 (Jan 17)

2022 1st day close: 59183.22 (Jan 3)            :  2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 63284.19 (Dec 1)             :  2022 Closing High: 18812.50 (Dec 1) 
2022 Closing Low: 51360.42 (Jun 17)             :  2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 63583.07 (Dec 1)          :  2022 High (intraday): 18887.60 (Dec 1)

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 Manisha Baxla

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