Key benchmark indecies ended a choppy day in the positive zone on Monday, rising for the first time in seven days, as global markets supported the trading sentiment. The benchmark S&P BSE Sensex gyrated in a range of 796 points before ending 180 points, or 0.34 per cent, higher at 52,974. The NSE Nifty, on the other hand, shut shop at 15,842, up 60 points or 0.38 per cent.
NTPC, Bajaj Finance, Maruti Suzuki, SBI, HDFC, Kotak Bank, M&M, and IndusInd Bank were the top gainers on the Sensex index today, up between 1.6 per cent and 2.9 per cent. On the downside, Ultratech Cement, Asian Paints, ITC, TCS, HCL Tech, Nestle, and Dr Reddy’s Labs were the top laggards, down in the range of 1-2.8 per cent.
In the broader market, the BSE MidCap and SmallCap indices outperformed the benchmarks as they added 1.5 per cent and 1.15 per cent, respectively. Sectorally, the Nifty PSU Bank index was the top gainer, up 3 per cent, while the Nifty IT index was the worst hit, down 0.75 per cent.
Among stocks, Ambuja Cements and ACC rose 3 per cent and 7 per cent, respectively, after Adani group announced entering an agreement with Holcim to buy its stake in the two companies.
State Bank of India (SBI) share price fell in early trade on May 16 after the company reported its March quarter earnings on May 13. SBI reported a 41 per cent year-on-year rise in net profit at Rs 9,113.5 crore, which was below Street’s estimate of Rs 9,927.6 crore.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Nifty is down 9 per cent this year and the market is weak. In a bear phase there will be relief rallies, but such rallies are unlikely to sustain, given the relentless selling by FIIs. It is rational to expect more FII selling, particularly when the market stages relief rallies. It is important to appreciate the fact that FIIs are selling not because they are bearish on India but because US bond yields are attractive and the dollar is strengthening. Since Nifty is trading at around 18 times FY 23 earnings, valuations are not yet cheap. But there are pockets where earnings visibility is good and valuations are fair like financials, telecom, IT and construction. Long-term investors can start accumulating high-quality stocks in these segments”
Global Cues
Wall Street stocks rallied Friday, finally managing to score gains at the end of a week beset with worries over inflation, the Ukraine war and the economic outlook. The tech-rich Nasdaq Composite Index led the major indices, winning 3.8 per cent to close at 11,805.00. The Dow Jones Industrial Average climbed 1.5 percent to end the day at 32,196.66, while the broad-based S&P 500 jumped 2.4 per cent to 4,023.89.
Tokyo shares opened higher on Monday after Wall Street rebounded, backed by gains among high-tech stocks. The benchmark Nikkei 225 index gained 1.23 per cent, or 325.72 points, to 26,753.37 at the open, while the broader Topix index rose 1.03 per cent, or 19.13 points, to 1,883.33. The dollar fetched 129.48 yen against 129.19 yen in New York on Friday.
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