Sensex Today: Indian shares traded little changed on Monday as hopes of demand recovery in China were offset by jitters over a potential global recession. The S&P BSE Sensex settled near the day’s high at 61,806, up 468 points or 0.76 per cent. The Nifty50, meanwhile, shut shop at 18,420, up 151 points or 0.8 per cent.
Adani Ports, Adani Enterprises, M&M, Eicher Motors, Power Grid, Bajaj Auto, Bajaj Finserv, Hero MotoCorp, Bharti Airtel, Dr Reddy’s Labs, Britannia, HUL, Nestle India, Adani Enterprises, ITC, and HDFC were the top gainers in the large-cap space, as they climbed between 1.5 per cent and 4 per cent.
On the downside, TCS, Infosys, Tata Motors, ONGC, Sun Pharma, and IndusInd Bank fell up to 1 per cent.
Meanwhile, in the broader markets, the Nifty MidCap and SmallCap indices added around 0.5 per cent each, lifted by PB Fintech, BHEL, Cummins India, UTI AMC, Suzlon, and Shree Renuka Sugars.
Sectorally, the Nifty IT index was the most downbeat sector as it dipped 0.5 per cent. Accenture Plc’s results have nudged analysts to reaffirm their cautious stance on the Indian IT companies as they foresee moderation in revenue growth going ahead.
KFin Technologies: The Rs 1,500-crore initial public offer of KFin Tech was subscribed 50 per cent till 3:30 PM on the first day of the issue. Retail investors’ quota was subscribed 18 per cent, NII 1 per cent, and QIB 84 per cent.
Rupee Gains
The Indian rupee rose against the dollar on Monday as the greenback declined against its major peers, while forward premiums added to last week’s surge.
The rupee last traded at 82.6950 per U.S. dollar, up from 82.87 in the previous session. The local currency had opened at 82.81.
There were decent dollar offers through the day, probably on account of a pickup in forward dollar sales and speculative positions, a trader at a private bank said.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “The synchronised rate hikes by the leading central banks of the world and their hawkish tone impacted market sentiments last week with Nifty closing below the near-term support of 18400. While this risk-off can continue to impact the market, there are positive triggers too, like steadily declining inflation in the U.S. and the hope that the Fed will respond to this with a pause in rate hikes in early 2023. Therefore, market trends are likely to oscillate like the World Cup finals. Leading indicators point to a resilient Indian economy. Credit growth continues to be strong and this can impart strength to the Bank Index. High quality bank stocks can be bought on declines. IT may show weakness on fears of a US recession but this weakness can be an opportunity for long-term investors. Capital goods segment is on a strong wicket.”
Global Cues
Asia’s stock markets made a wobbly start to the final full trading week of 2022, with the prospect of interest rates rising further next year taking the edge off festive cheer.
Tokyo stocks opened lower on Monday, after Wall Street dropped over renewed fears of a global slowdown. The benchmark Nikkei 225 index was down 0.78 per cent, or 214.14 points, at 27,312.98 in early trade, while the broader Topix index was down 0.54 per cent, or 10.60 points, at 1,939.61.
US stocks fell for the third consecutive session on Friday as investors continued to worry over the impact of tightening monetary policy on economic growth.
Oil prices reclaimed ground on Monday after tumbling more than $2 a barrel in the previous session as optimism from China’s reopening and oil demand recovery outweighed concerns of a global recession. Brent crude futures rose 72 cents, or 0.9%, to $79.76 a barrel by 0103 GMT while U.S. West Texas Intermediate crude was at $74.89 a barrel, up 60 cents, or 0.8%.
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