-UAE doubles down on OPEC+ alliance
-India not buying Russian crude in rupees
-Shanghai locked down amid mass testing
-Surge in LNG prices deals blow to power units
-EPFO may invest more in bonds, equity
Let us take a quick glance at what happened on Dalal Street today.
After opening on a weak note because of renewed concerns over COVID-19 following a sudden lockdown in Shanghai, domestic equity markets bounced back smartly with strong buying in banking counters leading the charge.
A sharp decline in crude oil prices also buoyed investor sentiment although the COVID-related developments in China reined in the market’s enthusiasm.
Auto, media, and metals counters also saw healthy buying while healthcare and consumer durables slipped.
In terms of overall market capitalization, Monday’s rally increased investors’ wealth by Rs 43,385 crore.
The BSE barometer Sensex swung in a band of 813 points before settling 231 points higher at 57,593.49. The index, which had fallen below the 57,000 mark earlier in the day, has shed 627 points over the last 5 trading days.
Its broader peer, the Nifty50 gyrated in a band of 231 points before closing 70 points higher, just above the 17,200 mark. The index came close to falling below the 17,000 mark during the day.
Unlike the headline indices, broader markets failed to notch up gains on Monday, with the BSE midcap and smallcap indices losing 0.4 and 0.5 per cent, respectively. Fear gauge India VIX fell 3.5 per cent to settle at 22.6.
On the 30-pack BSE Sensex, 20 stocks gained, led by Bharti Airtel which rose 3.4 per cent. Axis Bank gained 2 per cent while ICICI Bank and ITC each rose more than 1.5 per cent. SBI added 1.4 per cent.
Nestle led the losers for the day, with a 1.8 per cent decline followed by HDFC and HCL which gave up 1.6 and 1.4 per cent, respectively. Dr Reddy’s lost 1.4 per cent while Asian Paints fell 0.6 per cent.
As many as 21 stocks hit upper circuit during the session while 5 tested their lower circuit limits. 61 stocks tested their 52-week highs during the session, whereas 67 tested their 52-week lows.
We have Narendra Solanki from Anand Rathi Shares & Stock Brokers to share his views on the day’s action and the road ahead:
Welcome to the show sir:
1. Markets swung between losses and gains before ending on a firm note. How should retail players time their entry amid the volatility?
2. Which are the sectors whose earnings stand to be hit the most by the recent rise in input cost inflation?
We also caught up with Nirav Chheda of Nirmal Bang Securities Research to decode the technical charts for you.
1. The Nifty50 settled above the 17,200 level. What do the technical charts suggest about it?
2. Bank Nifty performed better than the headline index. What is your outlook on the sector?
Asian markets ended mixed for the day. Major European markets were trading with decent gains in the first few hours of trade. Meanwhile, US stock futures were down, signalling a weak start to US equities later in the day.
That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!