Sensex, Nifty fall for six days due to rise in banking, auto stocks

Author: Nishu May 16, 2022 Sensex, Nifty fall for six days due to rise in banking, auto stocks

BSE Sensex closed at 52,973.84 points, up 180.22 points or 0.34%

BSE Sensex closed at 52,973.84 points, up 180.22 points or 0.34%

Benchmark indices Sensex and Nifty ended their six-day losses on Monday led by buying in banking, auto and power stocks amid a mixed trend in global equities.

The 30-share BSE Sensex of the Sensex closed at 52,973.84 points, up 180.22 points or 0.34%.

The index opened at a one-day high of 53,428.28, up over 634 points in the first half of trade. However, profit-booking at IT and select heavyweight counters restricted the index to a low of 52,632.48 points, down nearly 800 points.

The broader NSE Nifty closed 60.15 points or 0.38% higher at 15,842.30, recording its first gain in seven sessions. Sensex and Nifty fell over 5% in the last six sessions due to heavy selling by FPIs on inflation concerns.

“Autos and banks helped benchmark indices stay in the green as rising inflation and its impact on discretionary spending kept investors worried. The broader markets witnessed good interest from companies during the first quarter of the current financial year,” said S Ranganathan, Head of Research, LKP Securities.

Ajit Mishra, VP-Research, Religare Broking Ltd, said that since markets are closely following global cues, the rebound in the US market is giving hope of some respite on the domestic front as well.

Gains in HDFC twins, Kotak Bank, ICICI Bank and SBI helped the indices end their losing streak.

HDFC gained 1.96 per cent and HDFC Bank by 1.1 per cent. SBI gained 2.27 per cent, Kotak Bank by 1.83 per cent, IndusInd Bank by 1.61% and ICICI Bank by 0.85%.

NTPC was the top gainer among Sensex stocks, rising 3.05%, followed by Bajaj Finance with a gain of 2.37%. In auto stocks, Maruti rose 2.14 per cent and Mahindra & Mahindra 1.57 per cent.

However, losses in IT and select FMCG counters limited the rally in the stocks. UltraTech Cement was the biggest loser with a fall of 3.01%. Asian Paints fell 2.15 per cent, while ITC fell 1.78 per cent.

IT major TCS fell 1%, Tech Mahindra fell 1.22% and Infosys 0.94%.

Vinod Nair, Head of Research, Geojit Financial Services, said, “Continued selling by FIIs as they chase higher yield US bonds, despite interest from domestic investors, restricts the Indian market to sustain its pull-back rally. does.”

Weakness in global equities as well as unfavorable global cues led to heavy selling in the closing hours, as investors lacked confidence to pursue their positions, Mr Nair said. Investors are currently in the risk-free investment phase, looking for safe investments.

ACC and Ambuja Cements shares were in high demand as Gautam Adani’s group struck a deal to acquire a controlling stake in Holcim Ltd’s business in India for $10.5 billion.

Shares of ACC closed 3.7% higher at Rs 2,192, while Ambuja Cements ended 2.59% higher at Rs 368.10.

Adani Group companies also posted profits led by Adani Enterprises, rising 2.53% to ₹2,107.05. Adani Power jumped 4.99%.

The broader markets outperformed the benchmark indices.

BSE Midcap rose 1.51% to 22,145.10 while BSE Smallcap gained 1.15% to 25,605.99.

In the sectoral index, BSE Telecom rose 2.85%, Auto 2.2%, Utilities 2.17%, Power 2.1%, Consumer Discretionary Goods and Services 1.44%, Finance 1.45 and Bankex gained 1.43%.

On the other hand, BSE IT, Tech and FMCG declined up to 0.58%.

“The recent round of negative news has prompted investors to cut equity exposure. At one point of time, the benchmark indices were witnessing strong gains, but profit-booking once again saw the market end with a marginal gain against its initial gains. Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities Ltd said, there are concerns that rising interest rates to moderate higher inflation may stifle growth and result in further corrections.

Markets in Asia ended on a mixed note with Hong Kong and Tokyo settling in the green, while Seoul and Shanghai were marginally lower.

Equity exchanges in Europe were also trading with a mixed trend in the afternoon session.

Stock exchanges in the US had ended with smart gains on Friday.

Meanwhile, international oil benchmark Brent crude fell 0.51% to $111 a barrel.

According to stock exchange data, foreign institutional investors continued their selling and offloaded shares worth Rs 3,780.08 crore on Friday.

16 May, 2022, 6:08 pm

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Monday, 16th May 2022

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