Stocks snap 3-day losing run amid firm global cues
Equity indices regained footing on Monday after a three- session losing streak as investors snapped up banking, FMCG, and IT stocks amid a positive trend overseas.
However, a lacklustre rupee and unabated foreign fund outflows capped the gains.
Overcoming a choppy start, the 30-share BSE Sensex gained momentum as the session progressed to close 326.84 points or 0.62% higher at 53,234.77.
Similarly, the broader NSE Nifty rose 83.30 points or 0.53% to 15,835.35.
Hindustan Unilever topped the Sensex gainers’ chart with a leap of 4.03%, followed by IndusInd Bank, ITC, ICICI Bank, PowerGrid, Axis Bank and SBI.
In contrast, TCS, Tata Steel, Mahindra & Mahindra, Dr
Reddy’s, Tech Mahindra and Wipro closed with losses of up to 2.46%. Market breadth was in favour of the bulls, with 24 of the 30 Sensex counters logging gains.
“Bulls rebounded sharply in the late session after firm European market sentiment coupled with fall in crude oil prices... cheered investors. Despite the recovery, bearish-to-volatile sentiment will continue to prevail as FII outflows have remained buoyant, which is creating nervousness amongst the investors,” said Shrikant Chouhan, head of equity research (Retail), Kotak Securities Ltd.
Vinod Nair, head of research at Geojit Financial Services, said, “As we step towards the new earnings season, the prime focus of the market will turn towards quarterly numbers and updated guidance for the new financial year.”
In the broader market, the BSE midcap gauge gained 0.82% and the smallcap index climbed 0.59%.
Among the BSE sectoral indices, FMCG gained the most by 2.49%, followed by bank (1.08%), capital goods (0.97%), consumer durables ( 0.82%), and industrials (0.74%).
Energy, healthcare, IT, auto, metal, oil & gas and teck were the laggards.
Global markets began the second half of 2022 on a firm note, despite overhanging concerns about inflation, economic recovery and rate hikes by central banks.
In Asia, markets in Tokyo and Shanghai ended in the green, while Seoul and Hong Kong settled lower.
European bourses were trading in the positive zone in midsession deals. The US markets were closed for a holiday.
Meanwhile, international oil benchmark Brent crude dipped 0.50% to $111 per barrel.
The rupee paired its early losses and settled on a flat note at 78.94 (provisional) against the US dollar on Monday.
Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth ₹ 2,324.74 crore on Friday, as per exchange data.